ECONOMIC CONTEXTS

Understanding the Context

Economic disadvantage is a significant factor affecting many families in Australia. For instance, families living below the poverty line may face challenges such as unstable housing, limited access to nutritious food, and restricted access to early childhood education services (ACOSS, 2024; AIHW, 2023). Communities in regional or remote areas often experience higher unemployment rates and fewer resources, which can further exacerbate social and educational inequities (OECD, 2022). For example, a single-parent family living in a low-income urban neighbourhood may struggle to afford high-quality childcare, limiting their children’s opportunities for learning and development (Duncan & Murnane, 2014). This disadvantage affect children’s development direct and indirect. Due to the children’s limited access of the resources, they may experience delays in some of the development includes language delay, social and cognitive development. (Ridge, 2002) They may also face health challenges related to food insecurity or inadequate healthcare, which can affect school readiness (AIHW, 2023). Early childhood educators play a crucial role in mitigating these effects by providing supportive, inclusive, and resource-rich learning environments (OECD, 2022). Several sociological theories help explain how economic context influences child development. Bronfenbrenner’s Ecological Systems Theory emphasizes that a child’s development is shaped by interactions across multiple environmental systems, including family, school, and community (Bronfenbrenner, 1979). Economic disadvantage can impact both the microsystem (family interactions) and the exosystem (community resources), thereby affecting developmental outcomes. Similarly, Bourdieu’s concept of social and cultural capital suggests that families with limited financial resources may have less access to knowledge, skills, and educational experiences, influencing children’s academic success and social opportunities (Bourdieu, 1986). Economic disadvantage in Australia is diverse and evolving. Indigenous children are disproportionately represented in low-income households, while refugee and migrant families may face additional challenges such as language barriers and unfamiliarity with the Australian education system (McLachlan, Gilfillan, & Gordon, 2013). Rising living costs, housing shortages, and changing employment patterns continue to affect families’ economic stability, highlighting the need for responsive, culturally sensitive early childhood services (ACOSS, 2024; OECD, 2022).

Impact on Children and Families

Economic hardship affects children in multiple ways. Poor nutrition and limited access to healthcare can compromise physical health, while reduced access to books, learning materials, and stimulating environments may delay cognitive development (Moore et al., 2021). Emotional wellbeing can also be impacted, as stress related to unstable housing, food insecurity, or parental financial pressures may lead to behavioural difficulties and challenges with self-regulation (Waugh & Guhn, 2024). Social development may be limited when children experience stigma or exclusion, which can reduce peer interaction and a sense of belonging (AIHW, 2023). Educational engagement is often affected, with children at higher risk of absenteeism, lower school readiness, or reluctance to participate due to anxiety or embarrassment (AEDC, 2021). For early childhood services, these circumstances present both challenges and opportunities: educators play a key role in providing inclusive, supportive environments and engaging families in ways that foster resilience, learning, and wellbeing despite economic pressures (ACOSS, 2024).

Social Policy and Australian Responses

Research shows that early economic disadvantage is a serious risk for long-term poor outcomes. Public policy debates and studies call for stronger income support, affordable housing, and social safety nets, especially to support families with young children, to prevent early disadvantage from becoming lifelong disadvantage. (AIFS, 2013)
Australia has developed several national and state policies to help support families experiencing economic hardship. These policies aim to improve access to early childhood education, reduce financial pressure, and strengthen family well-being. The National Framework for Protecting Australia’s Children (2021–2031) focuses on prevention and early intervention, with an emphasis on keeping children safe, supporting families early, and improving collaboration between services.The Child Care Subsidy (CCS) provides financial support to reduce childcare costs for eligible families. This policy is designed to ensure children from low-income households can access early learning and care, helping reduce inequality in participation.Families can also receive support through Family Tax Benefit A and B, which assist with the cost of raising children, particularly for low- and middle-income households. Housing support is delivered through the National Housing and Homelessness Agreement (NHHA), which allocates federal funding to state and territory governments to address housing stress, improve access to secure accommodation, and support homelessness services.
These policies influence early childhood services by promoting equitable access, strengthening inclusion practices, and supporting families experiencing financial stress. However, challenges remain around affordability, service availability, and ensuring families receive coordinated support across different systems.

Strategies for Practices

Provide access to books and learning resources– Use programs like ROOP to ensure children have literacy materials at home and in the classroom.
Offer nutritious snacks and meals at the service– Reduce food insecurity to support concentration and learning.
Support family engagement– Help parents access financial counselling or community support services.
Create stable routines– Predictable daily schedules provide security for children living in uncertain environments.
Individualised learning support– Identify children who may need extra literacy, numeracy or social support.

Community and Professional Partnerships

.Below are the 5 relevant organizations that support children and families:

The Smith Family– Supports children from low-income families with learning resources and mentoring. Early Childhood Education services can refer families to help children access school resources.
Mission Australia– Provides housing and family support for families in financial stress. Early Childhood Education services can link families to programs to ensure stability for children.
Foodbank Australia– Provides food relief to families in need. Early Childhood Education can connect families to help reduce stress and improve nutrition.
Moneycare– Offers financial counselling and budgeting advice. Early Childhood Education can refer parents to support economic stability.
Home-Start Australia – Home-Start Family Services is a not-for-profit organisation dedicated to helping children and families thrive by providing practical parenting support & training, family case management and community connection.

Resources for Educators and Children

Projects/ Websites/ Programs

ROOP (Reading Out of Poverty) – They provide free books and run pop up libraries to children, new parents who have no access to books at home.
Home-Start Australia – Home-Start Family Services – is a not-for-profit organisation dedicated to helping children and families thrive by providing practical parenting support & training, family case management and community connection.
The Smith Family – focus on helping young Australian to overcome educational inequality caused by poverty.
Moneycare financial counselling – is available to support anyone who would like to improve their financial situation or is looking for help with budgeting their money

Children’s Story Books (Birth to 5 years)

Fly Away Homeby Eve Bunting – this book is about a young child and father who are homeless and living in an airport. Children shows empathy and hope and understand how it feels if you have no stable home
A Shelter in Our Carby Monica Gunning – this book is about a mother and child living in a car after they lose their home. It will build children’s empathy and have a realistic perspective about poverty.
The Can Manby Laura E. Williams – this book is about understanding how homelessness happens to those around us
If the Shoe Fits by Gary Soto – this book is about teaching children gratitude when hand-me-downs come

Videos/ Educational Shows/ Podcast

The Smith Family – Podcast “Breaking Poverty” – podcast that tells stories of families and young people facing economic disadvantage, and explores how access to education can help overcome poverty.
UNICEF – Video “How to address and end child poverty” – video explaining child poverty around the world.
“Growing Up Poor in Australia ‑ A Child’s Voice” (by the Valuing Children Initiative)”
Center on the Developing Child at Harvard University – Podcast “The Brain Architects Podcast: A New Lens on Poverty” –