The continuing growth of computer understanding and use by educators makes it imperative for elementary school principals to become computer literate. Teachers' knowledge and skills relating to computers are increasing; computer costs are declining and computers becoming more readily available; software is improving in response to demand; and the microcomputer is making its presence felt as an effective teaching tool. To be able to respond to the school's increasing use of and need to use computers, principals must have a basic working understanding of both the school's computer hardware and the software that is available for that hardware. The principal should be able to assess such factors as hardware costs, capacities, and uses, and software's availability, compatibility with hardware, quality, and relevance to educational or administrative goals. Principals should read at least one computer education journal regularly to keep up on developments in the field. With computer literacy, principals can increase their control of budgeting, office administration, and instructional leadership. (PGD)