Everyone likes to have an idea of how well their child is reading. I found a nice little assessment page that will help you find the approximate matching grade level for your child's reading skill.
You simply have the child read the column of words and mark when they make a mistake. After reading to a certain threshold (which is explained in the directions), you have their reading level. Simple! I plan to do this over the next week with all of my young readers.
Informal Reading Assessment