The National Center for Family Literacy (NCFL) is addressing problems of evaluation of family literacy programs through portfolio assessment. Beginning in fall 1991, 15 programs began using portfolios to document parent-child interactions. This guide provides a description of the introduction of portfolio assessment into these programs and presents a method for overcoming problems and analyzing contents of the portfolios. The project will continue to evolve as teachers and parents collaboratively decide how portfolios will be used. NCFL portfolios document changes in knowledge and beliefs about parent-child relationships and changes in parenting practices. Different formats are used, ranging from file folders to videotapes and computer disks. Additions to the portfolio are made once a month in teacher-family conferences. Evaluation of the Portfolios is ongoing at these meetings. Specific questions that teachers might have are addressed, and problems that centers have encountered so far are described. As the use of portfolios unfolds, the NCFL will update this guide. One figure and a 28-item list of references are included. (SLD)