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In this video tutorial, Catie from schoolhabits.com explains the importance of annotating text while reading. Annotating involves taking notes on the text, whether it is a book or an article. It is a fundamental school habit that can be beneficial in improving reading skills. Even though it may not always be required, annotating is a valuable skill to develop. It can help with comprehension and retention while reading. Annotating can also potentially lead to better grades. So, start practicing this skill early on to enhance your reading experience.