At the school I work at, we use the following guidelines for "average number of correct words per minute" for a 3rd Grader.
Fall- 71
Winter- 92
Spring- 107
*These numbers come from a book called "The Next Step in Guided Reading", written by Jan Richardson. (I would highly recommend it to any teacher wishing to observe and teach small reading groups with a more critical eye. It's a very teacher-friendly, no-nonsense book for assessing, grouping, and instructing every child where they're at.)
The reason we test for reading rate (correct words per minute) is because it's indicative of a couple of things. If a child is reading a larger number of correct words quickly, it's indicative that the child is using good strategic activity to figure out words quickly while they are reading. We also do notice a correlation (although there are many "outliers") between good reading rate and good comprehension. The reason we see this correlation is because students who have good reading rate typically read with good expression and phrase the words they say quickly, smoothly, and appropriately (as opposed to reading mono-toned and one word at a time, slowly). These behaviors are evidence that the reader is thinking about the meaning of the story (or they wouldn't be able to predict how a character would say something) and they have a rich knowledge about how "book language" works and sounds (as opposed to the "slang" most of us use regardless of where we live.)
Also, if a reader can read quickly, it gives the brain more opportunities to strengthen the connections it makes in less time than it takes a slower reader. (That is why we tend to see slower readers as having a disadvantage and try to encourage more fluent reading. Given the same amount of time as a faster reader, they can only get through a small amount of text using efficient "processing strategies" as opposed to the massive amount of text the faster reader can get through... and you know what they say, practice makes permanant.)
Please note that I said "correlation" and "indicative" a lot. Reading is much more complex than most people (even elementary teachers) take into consideration. Young readers are having to "sound out" unknown words quickly, check it against their spoken language to make sure it sounds appropriate, check it against what they know about the story at that point in time, all while trying to create meaning from or figure out the message the author is trying to relay. There is a lot going on in that little brain that we can't possible see, so observing multiple reading behaviors is our best chance of figuring out what's going on in there.
Reading rate alone is not an accurate assessment of a reader's capabilities and it is mostly likely being used to "screen" or "monitor" your child in the classroom since it's quick and can be "normed" for comparison against other student averages.
In order to get a clear picture of where you're child is at, please think about the following:
-Listen to how the reading sounds (Does it sound like he/she is telling a story, or does it sound like they are trying to figure out every other word?)
-How accurate is the reading? (Are they leaving more than 95% of the words correct? If so, that's a good sign.)
-Are they fixing most of their errors? (a good ratio would be that they fix atleast 1 out of every 5 mistakes... hey, nobody really reads 100% accurate all the time!)
-Do they understand what they are reading? (By 3rd grade, this includes knowing the characters, setting, plot as well as starting to think about what the characters are feeling and why they might react a certain way. You may also want to start talking about why the author chooses to write a certain way.)
If you're worried about your son's classroom performance, the best thing you can do for him is get him to read massive amounts of text at a "just right" level.
It's important to understand that "reading work" doesn't have to be "hard work". Nobody I know would pick up a medical book for leisure reading, and yet we process the text around us very efficiently. Why should we expect our children to read difficult text all the time? They get about as much benefit from that as most of us would get from picking up a random medical journal. It would be difficult because we don't understand half the words and we don't have the background experience to pull much meaning from that article. Wouldn't that just take the joy out of reading if that's what we were forced to read all the time?
An easier sounding book where your child is fixing most of their mistakes gives him the opportunity to "decode" the text efficiently and effectively. The more his brain has the opportunity to strengthen these connections, the faster it should happen.
Happy reading!
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