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This study followed the development of reading speed, reading accuracy, and spelling in transparent Finnish orthography in children through Grades 2, 3, and 8. We compared 2 groups of children with familial risk for dyslexia--1 group with dyslexia (Dys_FR, n = 35) and 1 group without (NoDys_FR, n = 66) in Grade 2--with a group of children without familial risk for dyslexia (controls, n = 72). The Dys_FR group showed persistent deficiency, especially in reading speed, and, to a minor extent, in reading and spelling accuracy. The Dys_FR children, contrary to the other 2 groups, relied heavily on letter-by-letter decoding in Grades 2 and 3. In children not fulfilling the criteria for dyslexia in Grade 2, the familial risk did not substantially affect the subsequent development of literacy skills. [ABSTRACT FROM AUTHOR]