This digest describes a research model that has shown how classroom practice can be developed, transformed, and enriched by drawing on existing "funds of knowledge" in minority students households. Funds of knowledge refers to those historically developed and accumulated strategies (e.g., skills, abilities, ideas, practices) or bodies of knowledge that are essential to a household's functioning and well being. Through participant-observer visits to minority student households, researchers and teachers became aware of these funds of knowledge. As a result of these research activities, teachers have come to view their students as competent participants in households rich in cognitive resources, and have consequently raised their expectations of students' abilities. Specific sections of the digest discuss the following: researching funds of knowledge, which describes a research project carried out in Tucson, Arizona; teachers as learners and reflexive practitioners, which discusses the difficulties involved in implementing this research model; and funds of knowledge as transformative principle, which highlights the underlying transformative potentials in viewing the households as repositories of funds of knowledge. (VWL)