The dominant view of technology so far has been that it is a tool to help improve the teaching of traditional subjects--knowledge mostly about the local and physical world. But technology has created a new realm: the virtual world. It may not be physical or tangible, but the virtual world is indisputable and has a significant economy. If one considers the amount of time young, digital natives spend in virtual spaces such as Facebook, MySpace, video games, eBay, and YouTube, one cannot say that this part of their world is not real. One of the initial challenges educators face in preparing students for 21st century lives is understanding what knowledge and skills are needed to live successfully in the virtual world. Schools can no longer ignore the importance of digital competencies or what children are already doing in the virtual world, with or without the involvement of educators. To develop virtual technology competencies, schools must take a number of actions to change their mind-sets, policies, and practices about technology. This article discusses what students will need to do to live successfully in the newly emerged virtual world and how to prepare children to develop new skills to live successfully in the virtual and global world. (Contains 3 online resources.)