This book provides an overview of ways in which the psychology of child development can improve education and promote children's competence. Part 1 of the book examines individual differences in children. Chapters in this part discuss: (1) the roots of children's competence, and particularly the influences of the environment, heredity, and motivation; (2) intelligence; (3) thinking; (4) literacy and numeracy skills; and (5) exceptional children, including slow-learning and gifted children. Part 2 reviews forms of education that foster children's competence. Chapters in this part discuss learning that is adaptable to many situations and that involves intellectual and thinking skills; teaching that fosters children's competence; and flexible curricula, including child-centered and multicultural curricula. Part 3 considers systems that promote competence in children. Chapters in this part concern teacher education; the role of the school in the community, including school organization, mentoring, cooperation between schools and parents, and the importance of play; and issues related to children's competence in different cultures, including the promotion of literacy and the effect of deprivation on children. A list of 146 references is provided. (BC)