This presentation reports the first phase of a multi-phase project to develop computer readiness materials for children. Materials are intended to prepare children to work with computer-assisted instructional programs. This first phase of the research involves designing and testing matrix boards, which are used to teach preschoolers and kindergarteners the parts of the computer and to reinforce concepts such as big and little, geometric figures, and colors. The matrix boards, which can be made by teachers and day care workers at low cost, are designed to be used in simple transactional games such as "Simon Says" and "Concentration." The use of these matrix boards is based on the learning principles of Bloom, Hunt, and Piaget, as well as on Moore's and Gotkin's ideas about individualized instruction which emphasize the child's taking the initiative in learning and/or taking the teacher's role with other children. The matrix boards initially used in the project were modeled on the original Gotkin Language Matrix Boards, but they were modified after a pilot test with 50 children ages 3 to 5. Appendices to the report include an example of a game matrix, a sample lesson, guidelines for transactional instructional games, and a song about the parts of the computer. (CB)