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Magazines offer a great opportunity for literacy development and are relatively inexpensive. You may want to consider purchasing a subscription to one of these. I'm looking into purchasing subscriptions for the class.
National Geographic for Kids: http://www.nationalgeographic.com/magazines/
Zoo Books: http://www.zoobooks.com/
Time for Kids: http://www.timeforkids.com/TFK/
Cricket: http://www.cricketmag.com/home.asp
Highlights for Children: http://www.highlights.com/