A study examined the nature of functional literacy among 671 Moroccan children, aged 11-14, and the relationship of functional and classroom literacy to background factors and school experience. Students were assessed on a series of household literacy tasks sampling knowledge of spatial and monetary print conventions, specialized vocabulary, and ability to relate the written word to real-world contexts. The most difficult tasks involved spatial, monetary, and telegraphic text conventions. Correct responses were associated with grade level achieved and with remaining in school. Among younger children, cognitive level, reported home literacy activity, and urban environment were significant predictors of both household and school-type literacy. By contrast, predictors of household literacy differed considerably from those of school literacy among older children. Cognitive level, factual knowledge, and grade level attainment predicted both types of literacy, but urban residence, male gender, and home literacy activities appeared to play a greater role in fostering household literacy, while school dropout and age predicted school-type literacy only. The pattern of results indicates that knowledge of literacy conventions required for successful performance of common household literacy tasks may be acquired only partially, even after five years of formal schooling, and different pedagogical approaches may be required to promote development of each literacy type. (Author/MSE)