Computers are changing the lives of millions of people, but schools are still not producing many computer literate students. Rapid improvements in hardware technology and major progress in the development of software have put computers within reach of everyone. Computer literacy must now be treated as a functional tool similar to reading, writing, and arithmetic. Student knowledge about computers can be classified into four levels: at the novice level the student uses prepared programs, often in the form of computer-assisted instruction; the intermediate level requires more substantial mastery of the machine, permitting such operations as word processing, information retrieval, or application of analytic methods tailored to specific content; the advanced level involves development of programming skills suitable to an area of investigation; and with professional-level knowledge the student is prepared for employment in the data processing field. The degree to which a student can be considered computer literate depends primarily on the level of computer knowledge his or her academic endeavors demand. Teaching students the necessary skills effectively and providing an adequate understanding of the social and ethical concerns that will accompany the new technology will require computer literate teachers backed up by suitable resources. (Author/PGD)