Hi Rosettes:
Hopefully someone who teaches Y1 or KS1 will be along shortly - but in the meantime...
Welcome to the foreign language that teachers speak. I am not completely fluent but I'll attempt to translate having been there and done that.
Lancashire Primary has guides for reading in various years here which can help give you a better idea on what else is being taught besides the basic mechanics of reading - www.lancsngfl.ac.uk/nationalstrategy/literacy/index.php?category_id=399 - just scroll down and select the year.
Predicting the end of a story....
Our school was also big on this or 'what happens next' - the idea is to use all the clues (visual and textual) from the story to help predict what might happen.
So for example, you may have already read that the wolf has eaten grandma and is now in her bed in her cap and nightdress and glasses. Little Red Riding Hood has just walked past a woodman with an axe and said good morning and then knocked on the door of her grandmother's cottage - WHAT HAPPENS NEXT?
The clues from the text, the familiarity of the story, etc... should all work together to allow the child to make a good guess at what will happen next.
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Familiar words or High Frequency Words:
These are the most commonly spoken/ written words in English. Many a child just has to learn because sounding out the word won't make sense (e.g. said, she, he, etc...)
Info on high frequency words here:
first 100 High Frequency Word list here: www.highfrequencywords.org/first-100-high-frequency-word-lists.html
next 200 high frequency word list here:
www.highfrequencywords.org/next-200-high-frequency-word-lists.html
www.firstschoolyears.com/literacy/word/other/hfw/hfw.htm - the upper box has the lists (you want KS1 high frequency words - later you'll want Y4/Y5 medium frequency words and then further medium frequency words) and interactive hangman games are fun.
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The bringing them home to you is meant to demonstrate that the child and parent are aware of the literacy target DC is working toward at school. (OFSTED is big on this apparently) One could query why they've sent this to you at home, without clear explanation, but as the poem goes...ours isn't to reason why....