The aim of the study was to examine which predictor variables are related to literacy skills among monolingual Swedish (n = 269) and bilingual Finnish–Swedish (n = 229) children at the first grade in the Swedish-speaking schools in Finland. The participants were assessed in phonological awareness, letter knowledge, rapid automatized naming (RAN), word recognition, reading fluency, and spelling. The results showed that RAN was the most significant predictor of reading and spelling skills in both language groups, and monolingual children performed significantly better in RAN. Moreover, letter knowledge predicted reading and spelling skills in both groups. However, no significant differences between language groups in reading and spelling skills were observed. The results emphasize the importance of interpreting the pre-literacy screening, especially with bilingual children.