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Phonics is a relationship between letters and sounds.
Phonics is a way of teaching people to read by teaching them to recognize individual sounds, instead of whole words.
Children learn the sounds of each letters. For example, the letter 'a' in 'apple' makes /©¡/ sound, the letter 'o' in 'octopus' makes /a/ sound, the letter 'c' in 'cat' makes /k/ sound. Once they know what each letter sounds then they learn to say two letter combinations and three letter combinations. Once the children grasp the relationship between letters and sounds, they are able to read many kinds of letter combinations.
The main advantage of learning phonics is for children not to be afraid of facing the new words so that they can read them on their own without any help.
 
There are many meaningless words we come across in phonics lessons. Learning to say these nonsense words are useful in phonics. For example, the word 'bab' doesn't mean much but it can be used to say in word like 'babble'. The same rule applies to 'fab' in 'fabulous'.
If you break 'hippopotamus' into individual sounds, you would get two or three letter combinations - 'hip', 'po', 'po', 'ta', 'mus' - which doesn't mean much, but it suddenly helps when children read the word 'hippopotamus'. Children are not afraid to read this long new word. Without any help, children try to read it and write it on their own. Once they succeed, the sense of achievement will lead them to be more successful and enthusiastic about English. Nonsense words function as tools for practicing to read new words without any help from anyone.
 
Another way of learning to read is to use 'Whole-Word Approach'. However, it is not very suitable for countries where their native language is very different from English and where there is very little exposure to English outside the classroom. Children have to memorize the spelling of every single words and they won't be able to read new words.
Some people oppose phonics because of the irregulars in English, but for children who have learned phonics are not afraid of English so they are more willing to try. As a result, they become more familiar with English. Once they become more familiar with English it will be easier to learn the irregulars. Children don't have to learn and memorize the spelling of the irregular words. For example, in irregular word 'beautiful' (b-e-a-u-t-i-f-u-l), 'b' and 'tiful' are regular so they only have to take in the irregular part which is 'eau'.
Irregularity will be introduced gradually as they progress so that it won't be hard for them to take in and still feel enthusiastic about English.