The most important thing is continuity and gradation in the design of curriculum. In other words, the continuity and level is subtitued for the relation and gradation of curricula objectives. The gradation is the vertical relavance of those objectives, and the relation is the horizontal relavance. In special, the gradation of curriculum is directly related to the contents of individual subject of study. Despite of its weight, there is not sufficient to explore the gradation in recent researches. Most researches applied to the general theory of development with the gradation in literary education. And They often disdained the real competence of students. On the critical stance of these tendency, this monograph will explore the gradation of materials of children's literature. For the purpose of this objective, this study surveyed the various theoretical advances and researched the experimental methodology. As a result, it is the Erikson's theory that is useful in children's development. The discussion of Erikson's is focused on growth, and intended to the formation of positive subject. But the result of this research is not enough sufficient to the reality of literary education. Because the lower grade students of elementary school have no narrative compentence. Their competence is confined with the word recognition or simple association of word. In result, our research must be concretized through the various and deep researches. This monograph is the previous study and the touchstone of the following researches. 【Key words】 gradation, theory of development, the competence of narrative, the gradation of material.