In spite of widespread concerns about low academic achievement nationally, parents generally have expressed satisfaction with their own children's achievement and schools, largely because their children's grades suggest that they are doing well. This report examines what student grades tell about achievement through the use of data from the National Education Longitudinal Study of 1988 (NELS:88). Overall, the average grade today is a "B." Comparisons of schools in high-poverty areas and those in more affluent areas indicate that "B" students in high-poverty schools have about the same NELS:88 test scores as do students receiving "D" or lower in schools with the lowest concentrations of poor students. "C" students in the poorest schools had about the same test scores as failing students in the most affluent schools. While NELS:88 scores are only one indicator, other indicators also show the need to improve the quality of education in schools, particularly in poverty areas. Parents need to ask how grades are determined, and whether the student is receiving an appropriately challenging education. (Contains 3 references.) (SLD)