This policy report provides a guide and framework to early childhood policymakers considering formative assessment. The report defines formative assessment and outlines its process and application in the context of early childhood. The substance of this document is the issues for consideration in the implementation of the formative assessment process. This guide provides a practical roadmap for decision-makers by offering several key questions to consider in the process of selecting, supporting, and using data to inform and improve instruction. The report also includes: Additional Resources and Endnote sections.