Economic Adversity affects physical health, cognitive development, and emotional wellbeing--in short, some of the features in the lives of children. For instance, children in low-income households have a greater chance of encountering food insecurity, which stunts growth and concentration ability, thereby affecting academic performance (Davidson et al., 2017). Housing instability may be caused by many factors, most of which translate into frequent moves, which, in turn, disrupt continuity in education. It also contributes to stress that affects their emotional regulation (AIHW, 2023). Sometimes, the inability to afford to enroll in after-school activities or acquire books and educational materials may limit the learning opportunities of low-income children and slow the development of their life skills (Moore et al., 2017).
Economic stress has notable ramifications for children in their formative years. Research has proven children from disadvantaged backgrounds more likely to enter school less prepared in their language, literacy, and numeracy skills (Goldfeld et al., 2018). Parental stress will reduce emotional availability and responsiveness of parents, impeding eventual behavioural and emotional development in their children (Davidson et al., 2017). It also affects early childhood service delivery. Services may then face inconsistent attendance, limited family engagement owing to a parent’s work commitments, and a greater demand for externally based support referrals (Torii & Fox, 2020).