Understanding Magic Penny Reading
Humans have an intrinsic capacity for spoken language but not for written language. The structure of the English alphabetic system must be understood before developing instructional methods for teaching reading. Written English uses the phoneme to construct words. The 43 phonemes (basic sounds) of the English language can be easily learned and recalled. Unfortunately, the reading techniques in common usage today were developed without consideration of how written English was developed. As with all codes, the decryption algorithm must mirror the encryption algorithm. Thus, if the English language was encoded using phonemes, then it must be decoded using phonemes. Instruction in reading (decryption) and spelling/writing (encryption) must be logically integrated. The Magic Penny Reading Program applies this approach in a systematic and explicit manner that has been shown to effectively and efficiently increase reading proficiency for children in Kindergarten through 3rd grades in a variety of school settings and has achieved a success rate of 100% proficiency in 3rd grade as measured on the New York State English Language Arts examination that assesses reading comprehension, writing, and listening.
BACKGROUND
Reading programs in the United States use a variety of instructional methods including sight reading, whole language, traditional phonics, and the “phonologic” approach (not to be confused with the Magic Penny Reading’s phonemic approach), as well as a combination of these methods. Although early research concluded that the reading method is not important for success (Bond and Dykstra, 1967), many communities unfortunately still experience low 3rd grade reading proficiency.
Education research first demonstrated the strong positive correlation between phonemic awareness and reading skill in the early 1970s (Rosner and Simon, 1971). In 2000, the National Reading Panel (National Reading Panel, 2009) identified over 2000 studies in the area of phonemic awareness and made recommendations for the teaching of this skill in early literacy programs. Phonemic awareness is now recognized as the best predictor of early reading success and most reading programs have since added phonemic awareness to their materials. However, adding a phoneme awareness module to a reading program that is not phonemically driven will not significantly improve low proficiency rates. This was confirmed by the recent findings of the Institute of Educational Progress (NAEP, 2009) that reported that only 66% of American 4th grade students are performing at or above a basic level in reading.
Phonemic awareness is a highly trainable auditory skill; however, improving a child’s phoneme awareness will not have much of an effect on the child’s success in reading if that child continues in an ineffective reading program. Since the phoneme is the basis for written English, the phoneme must define our instructional strategy throughout all early literacy instruction. The Magic Penny reading program is based on a systematic and integrated phonemically-driven methodology,
The Magic Penny Reading Program Solution
The English alphabetic writing system must be carefully taught beginning with the phonemes that are the basis for the system. Early instruction in phonemic awareness should emphasize listening to the phonetically correct pronunciation of the phonemes. Then the letters that represent the sounds, beginning with the simplest, must be systematically taught. As soon as the first subset of sound/letter correspondences are understood, the child should be taught to use them to encode (spell) and write words; the child then quickly progresses to decoding words, reading their first book, reading comprehension and writing activities. This exposes the child to one of the most basic features of any code, the concept of reversibility of the encoding and decoding processes. Furthermore, reading comprehension and writing are introduced at the earliest possible stage. This integrated approach is emphasized throughout the early literacy Magic Penny Reading Program.
All phonemes of the language are taught as the child progresses. Since there are no consistently correct rules to explain the irregularity of English spellings, children are instead taught that the sounds of English can be spelled in different ways; this variation is systematically taught using a well organized, probability based model. Phonemic decoding is developed to the point that it is automatic; automatic decoding frees up the child’s cognitive resources to focus on reading comprehension. Conflicting instructional approaches are avoided as they confuse the beginning reader.
Children should receive 30 minutes of differentiated small group Magic Penny Reading Program instruction each day and 20 minutes of independent work that is correlated with the small group lessons. The small group instruction should take place in the classroom.
2. Teacher Training
All participating teachers should receive staff development training in the Magic Penny Reading Program. In addition, online Video Teacher Training Modules will be made available. The use of these on-demand training modules will allow teachers to view a lesson at any level in the program. At the completion of the staff development, educators will be able to:
a. explain why phonemically-driven reading instruction, when used with fidelity, can achieve 95-100% reading proficiency by the end of 3rd grade.
b. demonstrate correct pronunciation of the phonemes and the use of the Magic Penny Reading Program’s online pronunciation resources.
c. use the Phonemic Reading Assessment to assess strengths and weaknesses and then prescribe effective phonemically-driven reading instruction.
d. use the Magic Penny Reading Program’s Quick Daily Monitoring & Planning system.
e. use the Magic Penny Reading Program to teach phonemic awareness, reading, writing, spelling, and reading comprehension.
f. deliver small group differentiated instruction for every child.
g. integrate other materials (e.g. basal reading programs and leveled readers) into a phonemically-driven reading program.
h. apply concepts taught in the Magic Penny Reading Program to other activities and lessons throughout the school day.
i. use the Magic Penny Reading Program’s interactive digital materials to supplement instruction (available for iPad, school computers, and interactive white boards).
j. use the Magic Penny Reading Program’s ‘Parent-Teacher Partnership’ materials to provide Parent Training Workshops.
3. Administrator Training
Training is also available for administrators. An administrator who has successfully implemented the Magic Penny Reading Program at the primary level will provide this training.
4. Assessment
a. Formal Assessment. Students should be tested using the curriculum-referenced Phonemic Reading Assessment in the beginning, middle, and end of each school year. Progress reports for parents are recommended following each assessment.
b. Daily Progress. Daily progress is monitored using the program’s Quick Daily Monitoring & Planning system that takes approximately 10 seconds per child.
5. Parent Training
Parents will be encouraged to become partners in their child’s literacy. At the beginning of the first school year, a parent introduction to the Magic Penny Reading Program should be provided. Parents will:
a. learn what to say and what not to say in response to their child’s reading questions.
b. learn how to reinforce their child’s reading progress by playing reading games/activities for 10-20 minutes each night.
c. learn how to interpret their child’s progress reports.
EVIDENCE
The Magic Penny Reading Program was first implemented in a Western New York public school in the 2002-2003 school year (30% of these children qualified for the free and reduced rate lunch program). Children in this Pilot study received Magic Penny Reading instruction in Kindergarten for 30 minutes each day (The average size of the intervention group in 2006-2009 was n=50; the average size of the non-intervention group (2006-2009) was n=14). No further instruction in the Magic Penny Reading Program was received in subsequent grades.
New York State (NYS) assesses reading performance in a statewide English Language Arts (ELA) assessment that is first administered in 3rd grade. The children receiving Phonemic Reading instruction in Kindergarten (2002-2003) took the 3rd grade ELA in January 2006; their scores on the NYS ELA were tracked though 6th grade in 2009. Figure 1 presents these results as compared to children in the same school who did not receive any Magic Penny Reading instruction. (components of these results were discussed in several national presentations (D Schneider, 2009; S Schneider, 2009; Schneider, 2010; Schneider, 2011).
In 2006, 100% of the children taught with the Magic Penny Reading Program scored at or above grade level in 3rd grade while only 44% of the children who did not receive instruction with the Magic Penny Reading Program achieved at or above grade level reading proficiency. The performance of the intervention group was remarkably similar over the 4 years that these data were tracked.
These data demonstrate that the Magic Penny Reading Program is a highly effective method for achieving reading proficiency. In addition, the data suggest that once children receive this instruction, their reading proficiency is stable and can be demonstrated year after year.
Figure 1. New York State English Language Arts Assessment (2006 – 2009).

The progress of these children was also tracked in Kindergarten through 4th grade using the standardized Rigby PM Benchmark assessment (Rigby, 2002) (Figure 2). Using this measure, no children were found to be reading below grade level; all children who used the Magic Penny Reading Program in Kindergarten were reading at or above grade level in Kindergarten through 4th grade. In addition, these data show that at least 80% of the children receiving instruction in Magic Penny Reading were performing at least 1 year above grade level in reading.
Figure 2. Rigby PM Benchmark reading assessment data (2003 – 2007).

Anecdotal Support from other WNY schools
School X. 46% of School X children qualified for the ‘free and reduced rate lunch’ program. After using the Magic Penny Reading Program in a pilot study in one of the district’s lowest testing Kindergarten classrooms in 2009-2010, the city school district’s Director of Learning wrote, “the students in the classroom where the Magic Penny Reading Program was implemented demonstrated significant strengths, with growth surpassing all other Kindergarten classrooms in the district…It is unmistakable that their success is directly related to the Magic Penny Reading Program…To say I am an advocate for the Magic Penny Reading Program would be an understatement.” (Personal Communication 2010)
School Y. 55% of School Y children qualified for the ‘free and reduced rate’ lunch program.
In 2008, a primary school that began using the ‘Magic Penny Reading Program’ in 2003 won the “Exemplary Reading Program Award” from the International Reading Association. In accepting the award, the school’s principal said, “Magic Penny Reading is the great equalizer because it breaks the cycle of poverty.” (Award Acceptance Speech 2008)
CONCLUSION
The Magic Penny Reading Program has been shown to achieve 100% reading proficiency in 3rd grade. This solution offers the opportunity to implement an evidence-based method to significantly increase reading proficiency in young children. In addition, the data suggest that once children receive this instruction, their reading proficiency is stable and can be demonstrated year after year.
For best results, the program should be implemented early, in pre-K , Kindergarten and first grade.
REFERENCES
Bond, G., and R. Dykstra. 1967. The Cooperative Research Program in First-Grade Reading Instruction. Reading Research Quarterly. 2. 1–142.
National Assessment of Educational Progress. 2009. United States Department of Education. Institute of Educational Science. http://nces.ed.gov/nationsreportcard/reading/ (accessed Feb 2011)
National Reading Panel. 2000. Report of the National Reading Panel. National Institute of Child Health and Human Development. Washington, D.C.
Rigby PM Benchmark. 2002. Houghton Mifflin Harcourt. Chicago, IL.
Rosner, J. and D.P. Simon. 1971. The auditory analysis test: An initial report. Journal of Learning Disabilities. 4. 384-392.
Schneider, S. 2009. "How to Break the Cycle of Poverty and Ensure Early Literacy Success for All Children (Including At-Risk, Special Needs and English Language Learners)" A Seminar/Workshop presented at the Annual Convention of the National Association for the Education of Young Children. Washington D.C.
Schneider, D. 2009. “A Fresh Look at Phonemic Awareness”. A Seminar presented at the Annual Convention of the National Association for the Education of Young Children. Washington D.C.
Schneider, D. 2010. “America’s 70% Literacy Rate and How Audiologists Can Help’. A Learning Module presented at the American Academy of Audiology annual meeting, AudiologyNOW. San Diego, CA.
Schneider, D. 2011. “Audiology and Literacy”. A Learning Module presented at the American Academy of Audiology annual meeting, AudiologyNOW, Chicago, IL.