How Money Matters for Young Children's Development: Parental Investment and Family Processes

This study used data from the Panel Study of Income Dynamics and its 1997 Child Development Supplement to examine how family income matters for young children's development. The sample included 753 children who were between ages 3 and 5 years in 1997. Two sets of mediating factors were examined that reflect two dominating views in the literature: (1) the investment perspective, and (2) the family process perspective. The study examined how two measures of income (stability and level) were associated with preschool children's developmental outcomes (Woodcock-Johnson [W-J] Achievement Test scores and the Behavior Problem Index [BPI]) through investment and family process pathways. Results supported the…