Economic Contexts
Understanding the Context
In simple terms, economic disadvantage means that families who experience limited financial resources are less likely to afford basic needs, for instance, food, housing, healthcare, childcare and education. In recent years, economic issues are increased due to inflation, rising housing costs, and difficulty in getting a job in Australia. This economic pressures directly affects families with young children, when stable and healthy environments are the key to children’s development within early years of their lives, (Australian Bureau of Statistics, 2025).
In early childhood, education. It is crucial to understand economic struggles, since it forms the opportunities accessible to children. As early years of children’s lives are the most essential period of their development, children who grow up in stressed households due to financial instability, they are more likely to have limited or no access to learning materials, for example, toys, books, and stimulating experiences that nurture cognitive development. It makes it difficult for families as well, preventing them from participating in excursions, learning programs, and community activities.
When this is viewed from a sociological aspect of Bronfenbrenner’s Ecological Systems Theory, it explains a useful framework for identifying how economic conditions can directly influence children’s lives. This theory states that children develop within various of interconnected environments, starts with families, education settings, community networks, and extends to broader social systems, (Grace, Bowes, & Woodrow, 2022, pp. 31-32).
There are multiple economic factors that functions at the societal level, for instance, housing affordability, employment markets, and government policies, that all can directly affect children’s daily experiences and families’ wellbeing. This can refer to families not being to find one on one time with their children due to working long or unstable hours, leading to emotionally unsupportive relationships with children.
Within Australia, economic disadvantages can negatively influence families in complex ways, families living in rural areas can face fewer employment opportunities and higher living costs. Another example is, in a single-parent household, additional financial pressure increases while trying to balance both caregiving responsibilities and employment. Refugee and migrant families are also part of this disadvantage, they are also likely to experience economic distress while trying to adjust and settle into a new country at the same time. One of the issues that almost all families experience is, housing, which is now a struggle to move in, leaving families to frequently relocate, stay in temporary accommodations. Those complex circumstances lead to disruption in children’s sense of stability, routines, and relationships, (Grace, Bowes, & Woodrow, 2022, pp.138-140).
Impact on Children and Families
Economic stress does in fact plays an essential role in children’s learning, development, and well-being, (Australian Institute of Family Studies, 2023). Financial instability increases stress and wellbeing levels of families, affecting family relationships. This leads to leaving families with limited close time with their children and unable to provide resources to support children’s learning activities at home.
In children, economic disadvantage can result in:
- Struggles in maintaining consistent attendance at early childhood education services.
- Language development can delay due to lack of books and literacy experiences.
- Lack of participation in early childhood programs
- Struggles in maintaining consistent attendance at early childhood education services. Having difficulties in making friendships is due to lack of socialization.
Childcare services can provide additional support to families with resource sharing, flexible payment arrangements, and partnerships with community organizations that can guide families, (Australian Children’s Education and Care Quality Authority, 2022, [ACECQA], 2022).
Social Policy and Australian Responses
The most known policy framework in Australia, the Early Years Learning Framework (EYLF, V2.0), describes inclusion, equity, and belonging as priority principles that guide early childhood education and care, (Australian Government Department of Education, [AGDE], 2022).
- Australian Government Department of Education manages The Child Care Subsidy, aiming to increase participation in early learning programs by reducing the costs of it, (Australian Government Department of Education, n.d.).
- Australian Institute of Health and Welfare (n.d) collected national data, which indicates that socioeconomic inequality remains an important factor when it comes to influencing children’s overall access to learning services and development.
Strategies for Practice
Strategies for practice to support children and families facing economic issues can include;
1) Designing Inclusive Learning Environments: Environment where all the children, regardless of their family’s financial stability, can access resources, learning materials, and experiences. For instance, ensuring that activities do not require pricey materials, providing shared resources, and implementing equal opportunities to allow each child to participate.
2. Building Healthy and Professional Relationships with Families: When early childhood educators develop trusting relationships with families. Not only it allows educators to understand families’ circumstances better and offer appropriate support, it also helps families to feel supported and valued within the community.
3. Implementing Strengths-Based Approaches: Early childhood educators are required to recognize cultural knowledge, resilience, and strengths that families bring to service. Identifying those features supports confidence and positive identity in children, (ADGE, 2022).
4. Supporting Access to Community Services:
Working in partnership with support services to provide assistance to families, relating to housing support, educational programs, or financial assistance can both benefit families and children, (AIHW, 2023).
5. Promoting Children’s Resilience and Wellbeing:
Despite children living in challenging situations, they can still improve their confidence and resilience in a safe environment that supports their emotional and wellbeing needs.
Community and Professional Partnerships
As mentioned earlier, there are community organisations early childhood services can partnership to support families experiencing financial difficulties, the organisations are;
- Mission Australia Helping Australians thrive | Mission Australia
- Salvation Army Australia The Salvation Army Australia - Believe in good
- UnitingCare Australia UnitingCare Australia | Care for Change
- The Smith Family Helping Australians thrive | Mission Australia
- Anglicare Australia Anglicare Australia - in every community
Resources for Educators and Children
These programs help children understand emotions, relationships, and community values.
Professional Resources for Educators
Barnardos Australia | Because Every Child Needs a Champion is an organisation that focuses on finance, housing, and poverty through counselling with families in need.
Helping Australians thrive | Mission Australia offers long-term guidance to families find and maintain financial stability and rescue homelessness.
Support for child and parent wellbeing | Department of Social Services focuses on early interventions to support children's development and families’ overall wellbeing.
Ask Izzy is free website that allows people to find local services, for instance, healthcare, housing, and food.
Children’s Storybooks
Those Shoes Kids Book Read Aloud Story
1) “Those Shoes” can be used to encourage children to understand empathy and how we shouldn’t judge others based on their clothes/shoes. Reading this book can teach children how to not judge others and determine value based on their outfit.
MADDI'S FRIDGE | By Lois Brandt | Children's Book Read-Aloud
2)Maddi’s Fridge mainly focuses on poverty and encourages sympathy among children regardless of their living situation. This book can also link to wasting food and allowing children to be grateful for the meals they get, while other children might not be able to get any.
Kids Book Read Aloud Story Last Stop on Market Street by Matt de la Peña
3)Last Stop on Market Street is about gratitude and allows children to see bright and positive aspect in life, despite hardship. This book is a great opportunity to recognize unfortunate situations other families go through and be grateful of what they have.
4)A Chair for My Mother gives children a message about patience, highlights saving, as well as family cooperation during financial difficulties. Reading this for story time can enhance children’s understanding of what their parents are going through and allow them to be aware of their families’ hard work, which can support their empathy skills.
Children’s Educational Media
Play School - Play School - ABC Content Sales is a great alternative to help children see different types of lives and homes, encouraging fairness and inclusion.
Bluey Bluey /ABC iview tries to reflect everyday life for all children to relate and values healthy relationships over possessions.
-Bluey | Boys and Girls Birthday
Party Supplies - Discount Party Supplies : Talks about homelessness and lack of access to food in a gentle way and introduces the concept of wants versus needs, relating to sharing and saving. Not only this show allows children to be more empathic towards other children who might be facing those issues, it also supports children in need to feel valued.
Sesame Street Sesame Street : ABC iview
Peppa Pig Peppa Pig : ABC iview is a great children’s tv show to introduce sharing is caring, fairness and equity, showing children that each family has different resources and how to build sympathy towards each other.