This study examines effects of traditional American values, held by students, their parents, and their friends on the success of students in school and their use of out-of-school time. Students' values in this study refer to the work ethic, importance attached to education, and strength of religiosity. Indicators of parents' values are concerns for their children's success in school. Values of a student's friends refer to the importance they attach to education. Data for this study came from the sample of 30,000 sophomores in the 1980 High School and Beyond Survey, which involved 1,100 high schools throughout the country. In 1982, there was a follow-up study of this sample of students. The primary finding of this study was that traditional American values are important predictors of students' success in school, as indicated, for example, by high academic achievement and infrequency of discipline problems in school. Traditional values are twice as important as family socioeconomic status in predicting the success of students in school. Another major finding was that students with strong traditional values were more likely than those with less-traditional values to use time outside of school to reinforce learning in school. For example, there was a significant difference in the amount of time spent on homework. Likewise, students with parents and friends who valued education and good behavior in school were more likely to have success in school. It seems that efforts to improve the American educational system must take into account the values held by students, their parents, and their friends. (JP)