Poverty’s hidden price tag starts in the nursery

Money troubles don’t just empty wallets – they shape young minds. A study published by the National Library of Medicine has found that growing up in financial hardship can trigger emotional and behavioural problems in children as young as three.

Researchers tracked more than 2 000 families from pregnancy to toddlerhood and found that the real damage of poverty often comes through stress inside the home.

Mothers under financial pressure were more likely to experience depression, parenting stress and harsher discipline – all of which fed into children’s emotional and behavioural issues.

And it’s not just about what’s missing in the bank account.

The study found that homes short on books, toys and other learning materials also saw higher levels of anxiety and withdrawal in children.

Those are the early signs of what researchers call “internalising problems” – the quiet struggles that can later affect learning, confidence and even earning potential.

Crucially, the study warned that raising household income alone won’t fix the problem.

“Interventions that focus solely on raising income levels may not adequately address problems in family processes that emerge as a result of economic disadvantage,” the researchers wrote.

For countries like South Africa, where child poverty remains stubbornly high, the findings hit close to home. 

A 2024 South African study on young children’s mental well-being in low-income communities, published in the Journal of Child and Family Studies and indexed by the National Library of Medicine, found that behavioural problems often stem from deprivation at home.

Caregivers described how children “don’t listen” or act out, sometimes even stealing because of hunger.

The researchers of the paper published by the National Library of Medicine noted that these externalising behaviours are not simply signs of poor discipline but reflections of economic stress and unmet basic needs, showing again how poverty directly translates into emotional and behavioural strain for children.

In short, the cost of poverty multiplies with time.

Experts cited by the National Library of Medicine say that tackling the issue means pairing income support with mental health care for parents and stimulation programmes for toddlers.

That’s because happier, less stressed parents are better equipped to nurture emotionally stable, curious kids – the kind who grow up to fuel a healthier, more productive economy.

The takeaway? If policymakers want to boost growth, they might want to start with something far more fundamental than interest rates or investment targets – the well-being of children in their first three years of life.

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