In this study we investigated 107 young learners’ L2 English receptive vocabulary knowledge and speaking skills at two points in time, before and after the onset of instruction. We also investigated the role of several individual difference variables: out-of-school exposure to English, length of instruction, analytic reasoning ability, working memory, L1 vocabulary knowledge and prior L2 knowledge. Results show that L2 English proficiency in receptive vocabulary knowledge and speaking skills greatly improved over time and that the effects of schooling and contextual learning are largely additive. The main predictor of the children's proficiency at time 2 was their L2 prior knowledge, which they had acquired through contextual language learning before getting formal education. When considering the other variables that predicted L2 proficiency, the contribution of internal variables (L1 vocabulary size and working memory) was considerably smaller than that of external variables (out-of-school exposure and length of instruction).