This study investigated the relationships between children's home literacy environments and their early hypotheses about printed words in the year prior to entering school. There were 147 children (70 girls and 77 boys: mean age 57 months, range = 47-66 months, standard deviation = 4.5 months) in the study. Results showed that the children had varying degrees of knowledge about printed words. Significant associations between age of the child and the application of hypotheses about printed words were found. In relation to the home literacy environments, parents with stronger literacy profiles and habits, whether to do with traditional forms of print or new techno-literacies, were more likely to read to their children on a daily basis, and these children were more likely to have developed hypotheses about the structure of printed words. The implications for understanding children's early literacy knowledge and relevance for educators of young children are discussed.