The effects of early family and school environments on the language development of young children are explored in this paper on developing literacy. It is stated that children's intellectual development can be detrimentally modified by such home conditions as: (1) poor prenatal nutrition, (2) low socioeconomic status, (3) poor language skills of family members, and (4) inadequate stimulation. In addition, schools implementing compensatory education programs often ignore the importance of applying learning theory and matching learning styles with teaching methods. The instructional implications of several learning theories (e.g., the behavioral-environmental view) are considered. Examples of teaching methods matched to appropriate learning styles are provided. An increased use of individualized instruction is suggested. (BRT)