Within the fundamental context of "how children learn to read," attention is drawn towards an understanding of the "components" that are necessary for the child to move from oral language to early literacy. Looking at this transition requires the educator to consider whether literacy can develop as naturally for the child as speaking, or if not, what specific training and development beyond exposure to print it requires. Likewise, what is the role of the child's home environment in this process, as well as the school's to foster literacy? These are essential questions for the educator and parent alike. This paper addresses these issues within the context of early literacy development in children. First, the paper reviews the literature on children's early book behavior and the caregiver's role. It then discusses phonemic awareness--what it is, why it is important, and how to teach it. The paper also examines the research on the "Great Debate"--code-oriented versus whole language approaches to reading instruction. It finds that learning to read, although not a natural process, is essential to a child's well being in a literature-driven society, and that early literacy is as much a family responsibility as it is a school responsibility. (NKA)