I think what you are doing is enough at her age, no matter how clever she is. You are already working with her on the foundations of reading, you are answering her questions and taking the lead from her for her learning. As long as you are providing the correct resources...books, printed words throughout the nursery, recipes, menus etc in role play then you are 'teaching' her to read. You are aware of her developmental stage and planning appropriate activities to enhance her learning. If you have magnetic letters out you can answer her questions on sounding out the letters, when reading books when she asks what a word says you can say the word, ask what letters she recognises, what sounds she recognise etc. If you have a good relationship with the school she is likely to go to, you could always contact them and ask their advice as every school has a slightly different way of starting sounds etc. In my area we have a training website with useful information and recently had an email through about reading etc if you like i could try and find the information they suggested xx
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