The relationship between mothers' and teachers' estimations of 60 children's literacy level and their actual performance were investigated in two different socio-economic status (SES) groups: low (LSES) and high (HSES). The children's reading (fluency, accuracy and comprehension) and spelling levels were measured. The mothers evaluated their own children and 17 teachers evaluated these same children in the same domains. HSES children exhibited a higher actual literacy level than low SES children, and were estimated as having a higher literacy level by their mothers and teachers. Mothers' estimations were higher than those of teachers, and spelling level was estimated as the lowest domain by teachers and parents. Regression analysis showed that the teachers' estimations were the most accurate regarding the children's literacy level in all domains, whereas the mothers' estimations and family SES partially contributed to the children's actual level. Implications of these findings are discussed. (Contains 4 tables and 3 figures.)