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Impact on Children and Families
Economic hardships impact children’s development in multifaceted ways:
Physical health may be compromised by poor nutrition or delayed medical care.
Cognitive development may be delayed due to limited exposure to enriching learning materials, books, and stimulating environments.
Emotional wellbeing is often compromised in children who experience food insecurity, parental stress, or unstable housing, leading to behavioural issues or difficulty regulating emotions.
Social development can be impacted as children may experience social exclusion or stigma, leading to isolation and reduced peer relationships. Children may
Educational engagement is affected by absenteeism, lack of school readiness, or a reluctance to participate due to embarrassment or anxiety.
Early childhood services may struggle to engage family’s economic challenges, particularly when families have experienced mistrust, trauma, or mental health concerns. For educators this presents both a challenge and an opportunity to create inclusive, supportive environments that build trust and foster resilience.
Understanding the Context
Understanding the Context
Economic Contexts:
Economic hardship remains a pressing issue in Australia, significantly impacting children’s lives and access to equitable early education and care. It includes poverty, unstable housing, food insecurity, and limited access to essential services. According to the Australian Council of Social Service, one in six children under 15 lives in poverty (Australian Council of Social Service [ACOSS], 2024). This context is important in early childhood education as socio-economic factors shape children’s developmental opportunities and wellbeing from birth. Economic context is directly proportional to child’s access to quality education, nutrition, and social opportunities, creating long-term disparities.
In early childhood education (ECE), economic contexts are deeply relevant. Children from financially disadvantaged households often begin their learning journeys with fewer resources, reduced access to quality early learning programs, and greater vulnerability to developmental delays. Early childhood educators are in a key position to identify and support children impacted by economic stress, ensuring that all children have equitable access to developmental opportunities.
From a sociological perspective, Bronfenbrenner’s Ecological Systems Theory highlights how microsystems experiences (family, income and housing) are influenced by exosystem and macrosystem structures such as economic policy and employment rates (Waugh & Guhn, 2024). It also affects children across multiple environments such as home, school and community. Contemporary research shows the compounding effect of poverty on children’s school readiness, language development, and emotional wellbeing (Moore et al., 2021).
Australia’s social and economic landscape continues to evolve, with growing housing insecurity, inflation, and casualised employment disproportionately affecting low-income families. The diversity within these experiences including single-parent households, migrant families, indigenous communities, Aboriginal and Torres Strait Islander children, refugee families, and those living in rural areas requires tailored and culturally responsive support in early learning spaces.
Strategies for practice:
In order to support children experiencing economic difficulties, educators can implement the following five evidence-based strategies:
1. Trauma-informed practice: Recognising that financial stress coexists with trauma, educators can build emotionally safe environments using flexible routines, calm communication, and positive reinforcement.
2. Flexible enrolment and support: Offering part time enrolment, reduced fees, and support with transport or meals ensures accessibility for families in hardship.
3. Strengths-based Family engagement: By valuing family knowledge and culture, educators foster respectful relationship and reduce stigma.
4. Intentional and Social-emotional skill development: Using play, books, and group time to explore feelings, self-regulation, and empathy helps children cope with stress and build resilience.
5. Culturally responsive practice: Understanding that economic difficulties intersect with culture and language allows educators to provide support that honours family’s diverse identities and backgrounds.
Community and professional partnerships
Here are 5 relevant organisations and or professionals that support children and families in economic difficulties:
1. The Smith Family- It provides education support for disadvantaged children through scholarships, tutoring, and literacy programs.
2. St Vincent de Paul Society- It offers emergency relief, housing assistance, and support services for families in crisis.
3. Uniting care or Anglicare- It delivers family support, financial counselling, and early intervention services.
4. Family support workers- They collaborate with educators in identifying risks, promoting development, and connecting families to resources.
Early childhood services can develop memorandums of understanding, referral processes, and shared community events with these partners to provide holistic support.
Social Policy and Australian Responses
Australia has introduced several policy initiatives at the national and state levels to support economically disadvantaged families:
National Framework for Protecting Australia’s Children (2021-2031) promotes prevention and early intervention for families at risk.
Child Care Subsidy (CSS) helps reduce out-of-pocket expenses for eligible families, enabling access to early learning programs.
Family Tax benefits assist low-income families with financial support.
National housing and homeless agreement (NHHA) provide federal funding for states to address housing stress.
State-based early learning programs such as Victoria’s best start, Best life program, offer free access to preschool for all children.
Despite these frameworks, gaps remain. The Productivity Commission (2024) noted that only 58% of children in the lowest income bracket attend preschool, compared to 90% from wealthier families (Productivity Commission, 2024). Economic pressures continue to grow, requiring more coordinated, equity-focused responses. Policy highly influences early childhood practices by mandating inclusive access, encouraging holistic child development, and funding programs that address social disadvantages. However, service leadership, and partnerships with external agencies.
Resources for Educators and Children
Programs & Projects:
1. Goodstart Early Learning Inclusion Hub: It provides resources on supporting vulnerable children in early childhood education. Educators can refer this on building strong family partnerships, and ensuring all children, regardless of background or ability, have access to quality early learning experiences (Goodstart Early Learning, 2023).
2. Foodbank Australia- It delivers free breakfasts to schools in low-income areas. Educators advocate for their school to join the program (Foodbank Australia, 2024).
3. Salvation Army- It offers free financial advice and emergency relief for struggling families. Educators can guide parents to this service, helping stabilise home environments, which in turn supports children’s emotional security (The Salvation Army Australia, 2024).
4. The Smith Family- It provides financial assistance, mentoring, and educational support for children. Educators can refer families to this program, ensuring children have access to school essentials, reducing stress, and fostering resilience (The Smith Family, 2023).
Children’s book:
1. Those Shoes by Mariabeth Boelts- It explores want vs. needs, financial limitations, and empathy (Boelts & Jones, 2007).
2. Still a Family by Brenda Reeves Sturgis- It highlights family unity despite living in shelters (Sturgis & Shrodes, 2017).
3. A shelter in our car by Monica Gunning- It depicts about homelessness and hope through a child’s perspective (Gunning & Pedlar, 2004).
4. Last Stop on Market Street by Matt de la Pena- It promotes appreciation and equity in diverse communities (de la Pena & Robinson, 2015).
Children’s Videos
1. Sesame Street in Communities- Poverty & Hunger- It is about food insecurity and empathy (Sesame Workshop, 2023).
2. Little J & Big Cuz- It highlights Aboriginal family’s life and community resilience (Ned Lander Media, 2017).
3. ABC kids listen- Imagine this podcast- It stimulates children’s curiosity and problem-solving across diverse contexts (Australian Broadcasting Corporation [ABC], 2023).
4. Play School: Through the window- Homelessness episode- It introduces children to diverse living situations (ABC, 2022).
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