To become good readers and writers children initially need to be able to decode words. The decoding of words is a prerequisite for comprehension. As children's vocabulary and knowledge of language structures increase, they become more familiar with linguistic structures (Konza, 2003). Generally when simple text can be read and the alphabetical principle is acquired (the concept that letters represent speech sounds), readers are able to decode words they do not immediately identify. They become fluent, especially when the text uses language that is familiar to them and is already within their experience and ability. Children must be fluent in recognising and decoding words otherwise their progress becomes challenged. The automaticity of word recognition, allows children to concentrate on understanding the text and acquiring new concepts. Wray's et al. (2002) analysis of what children need to develop literacy competencies focuses on three strands, word level work, i.e. phonics, spelling and vocabulary, sentence-level work, i.e., grammar and punctuation and text-level work, i.e., comprehension and composition. Each of these levels should be employed in a strategic way with high interest text, games and activities that have clear purpose which is both systematic with the interrelationship of reading and writing between them. The continuous monitoring of children's progress through the tasks, observations and informal assessment give a basis for teaching and reporting on this progress.