I see nothing wrong with letting a child skip a grade. I, too, skipped a grade in school. Went straight from K to 2nd, which was still way too easy. The principal wanted to shoot me straight to 3rd. School district wouldn't allow me to skip two grades, though, so they skipped me to 2nd and threw me in gifted classes instead.
If a grade is too easy for a child, I wouldn't limit them by making them stay in that grade. Let them advance. I suffered no ill side effects from it. Yes, I was in the same grade as my older sister and we both graduated the same year. Yes, I was still 15 in 10th grade and wasn't old enough to drive until my junior year. Big deal. No, I never felt I had a limited childhood because of it. I have never regretted skipping a grade.
One downside to keeping them in a grade too easy for them is potential resentment from other classmates. Didn't you hate the smart kid in class who always had all the answers and knew everything? Better to let her advance and be where her classmates are intellectually equal.
At that age, no one is going to care that they're playing/sharing classes with someone a year younger than them. Your son should have no problem with it as long as no big deal is made about it. If you play it out that your daughter is so damn smart that she's skipping a grade, then yeah there might be some resentment from the son. If he asks questions, tell him the other grade was too easy and leave it at that. No need to brag about it.
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