The central objective of factor analysis is to explain the greatest amount of variance in a data set with the smallest number of factors. Higher-order analysis is an invaluable tool that offers the benefit of parsimony provided by first-order analysis with the opportunity to make data-based generalizations beyond the first-order. Higher-order analysis provides a hierarchical framework that better honors the reality with which many phenomena in the social sciences are perceived. Interpretation of higher-order factors requires careful understanding and consideration on the part of the individual researcher. A step-by-step discussion of a real factor analysis is provided to make computer-based results more clear. (Contains 1 figure, 12 tables, and 8 references.) (SLD)