According to the new report published by the London School of Economics and Political Science, children in poorer families have worse health and behavioral outcomes. The scientists found that poverty has long-term consequences of children, and not because it is linked to parental and household characteristics.

Two researchers, Kerris Cooper and Kitty Stewart, found a link between the parent’s income and children’s outcome. They reviewed 61 studies from OECD countries, such as Germany, US, UK and Australia.

The Findings Are Worrying

According to Ms. Cooper, there are more than enough evidence that children who grew up in poor families don’t do as good as their peers on different outcomes, for example, education and health. They tried to find the connection between the money and children’s outcomes and prove that it is not just the differences between the rich and poor families, such as different parenting patterns and levels of parental education. The findings are very straightforward: money has a huge effect on children’s outcomes.

Why Does It Matter?

In the report called Does Money Affect Children’s Outcome they discuss the importance of cognitive development, as well as health and social and behavioral development. When they were looking to explain why money is important, they found two main theories based on strong evidence. One theory relates to the stress and anxiety parents feel when they have low incomes and the second one relates to the parent’s ability to pay for goods and services for child’s development. There is also evidence that higher income reduces depression, which has a huge influence in child’s development.

The researchers concluded that an increase in income in poorer families has a huge positive impact on children’s outcomes. The consequences of increased income have wide effects that influence other household members, change home environment and contribute to the healthy development of a child.

There is another report, published by the Joseph Rowntree Foundation, with almost the same findings. The researchers found that increased income has an important effect on child’s development and their outcomes.

In the report, they say that it is important to seek chances and opportunities for children in poor families to reach good outcomes and strive to alleviate different negative effects of low income on kids.

What do you think about this topic? Does money matter? Share your thoughts in the comments below!