The years when a young child's language skills are "exploding" are the years between three and five. What can make a dramatic difference in a child's life is if parents take a few minutes a day to read to him or her. Reading to a child helps him or her become a successful reader. The child develops a sense of phonics and learns that stories have a certain structure, besides learning vocabulary and memory skills and other things. This paper, one of four on literature and the young child, addresses phonics and story structure. The paper tells how a child develops a sense of phonics through rhythm and rhyme, how he or she learns that stories have a certain structure--a beginning, a middle, and an end--and that certain stories have unique patterns. An 11-item annotated bibliography (No. 1) recommends books with rhythm, rhyme and/or repetition; and another 13-item annotated bibliography (No. 2) recommends books of simple folktales, cumulative tales, and circle stories. (NKA)