annaz,
Good question! The ladies did a wonderful job of answering you, and they are exactly right! Phonics instruction formally ends when kiddos have had a complete phonics program that usually takes them through a beginning to mid-second grade reading level.
Once kiddos can read at that level, any phonics beyond that is for spelling purposes. Now, some kiddos can read at a second grade level without having any phonics instruction (because they can read by storing words by sight). So, I'm not saying that just because a child can read at a second grade level that phonics is done.
Without formal phonics instruction, even kiddos who read early and on their own, will often break down when we get to chapter books (often around grade 3 because they've never learned to decode words). So, I just wanted to clarify the importance of a phonics program.
At HOD, we do spelling in conjunction with the end of phonics instruction and then move into studied dication for spelling practice. This is the method we will use throughout grade 8.
Blessings,
Carrie