This study examines the relationship between preschool children's speech abilities and their basic abilities (perception, powers of reasoning, and spatial orientation), providing insights into what teaching methods and materials can be useful for basic reading instruction in Finland. Results, gathered by ranking 100 preschoolers according to speech ability, show that children belonging to the poorer speech-ability groups have greater difficulties in perception, powers of reasoning, and spatial orientation than do those belonging to the better speech-ability groups. After discussing the basic aims of reading instruction in Finland and the teaching methods and materials now used in Finnish reading programs, the study concludes that basic abilities need to be stressed at the preschool level and that teachers of basic reading should use a variety of teaching methods and materials to meet students' individual needs. (RL)