Teach all of the spelling rules. This knowledge is a real short-cut to spelling accuracy, and gives students an educational edge. This reinforces and cements newly-learned skills, and prevents guessing. Just because a child knows letters and sounds does not mean he is ready to read good literature. In recent years, scientific research has reaffirmed the importance of phonemic awareness in learning how to read.
Phonemic awareness is the ability to hear sounds within a word when it is spoken.
It is an auditory skill. Reading aloud to children, rhyming, singing, and other oral activities will help develop this skill. Reading is a visual skill. Phonemic awareness is the important first step in learning how to read. It is an important precursor to phonics, but should never be confused with instruction in phonics.