Struggling for Economic Security: Wealth, Race, and Child Development

Children need stable environments with loving caregivers to develop into their best adult selves. Sufficient income and wealth provide a foundation of economic security that makes these circumstances more likely. Unfortunately, both income and wealth are unevenly distributed, with some households having very little while a few are extravagantly well off. This means that many families have little to invest in their children and face stress trying to make ends meet. Whether households face economic security or struggle is highly patterned by race. In addition to discussing pathways for how wealth influences child outcomes, this article delves deeply into the nature of the Black-White disparity in wealth, discussing both historical and contemporary factors. The article ends by exploring programs and policies that have been piloted to increase wealth for those at the bottom end of the wealth distribution, making asset building inclusive and enabling more children to thrive.