This resource manual of ideas for incorporating functional literacy applications into student lessons is intended for volunteers trained to teach one-to-one in adult literacy programs and for teachers of adult students. The ideas are designed to increase beginning student exposure to and familiarity with functional literacy materials. It provides relevant reading materials while reinforcing basic skills development. Introductory materials discuss use of the book, teaching of functional literacy, materials needed, and definitions of important terms. The chapters are arranged by topics. Each topic contains sample lessons or lesson suggestions. Topics include names and sounds of letters, key words for the sounds of letters, sight words in real life reading materials, vowel decoding, alphabetical order, numbers, number words, variations on language experience, reading "everything," using the Bible or other religious material as teaching tools, family reading, and literacy and employment. A goal-setting checklist is followed by a bibliography of resource materials for tutors and teachers and reading materials for adults. (YLB)