Poverty benefits no one. But for children, whose bodies, brains, and nervous systems are still developing, the effects of poverty can be extremely severe. It not only impacts their physical and mental development, but can also lead to long-term health problems, impaired cognitive development, and mental health challenges. People who experience childhood poverty are more likely to be unemployed in adult life, to be in low-paying jobs, and sometimes to be involved with the criminal justice system. As a result, this has a significant economic and social burden on society.
According to a study conducted in the United States, every dollar spent on reducing child poverty results in economic savings of seven dollars. Similarly, in the United Kingdom, it is estimated that lost income due to reduced future employment opportunities due to childhood poverty amounts to approximately £12 billion annually, equivalent to approximately one percent of GDP. This clearly demonstrates that poverty is not just an individual problem, but also a significant threat to society and the economy.
How Poverty Affects the Brain
One of the long-term effects of childhood poverty is the stress it places on children’s developing brains and bodies. In countries like Belgium, Croatia, Italy, Estonia, and Poland, more than a third of eight-year-olds report often or always worrying about the family’s financial situation. Children also perceive their parents’ stress; research has found that children experience their mothers’ stress responses as early as infancy.
Chronic stress can alter brain development. The part of the brain that regulates emotions, the amygdala, can become overactive, causing children to overreact to everyday stress. Stress hormones like cortisol can affect the development of the hippocampus, which is crucial for memory and cognitive processes. Furthermore, changes in the prefrontal cortex and other brain regions can lead to emotional imbalances, heightened vigilance, and difficulty making decisions.
Interpersonal Effects of Poverty
Poverty is also dangerous for children because it compounds other forms of trauma. Children growing up in poverty are at greater risk of experiencing adverse childhood circumstances, such as domestic violence, which in turn contribute to problems like depression, anxiety, or drug addiction.
Another aspect of poverty is related to nutrition and the environment. Poor families often lack access to fresh and nutritious food. Research has shown that children from food-insecure families have poorer health and academic performance than children raised in food-secure environments. Therefore, programs like the School Lunch Program have proven that providing assistance to these children has led to long-term improvements in their academic and health outcomes.
Environmental factors are also important. Children growing up in poverty often live in polluted areas, which can negatively impact their development. Furthermore, poverty is often intertwined with other social challenges, such as discrimination in minority communities or among immigrant and refugee children.
Solutions and Social Protection
UNICEF prioritizes tackling child poverty and social exclusion in the Europe and Central Asia region. It helps governments understand who children growing up in poverty are, where they are, and what kind of support they need.
Children’s financial situation is not static. External factors, such as job loss or natural disasters, can rapidly alter children’s well-being. UNICEF uses technology and innovative methods to monitor children’s well-being, enabling governments to respond more effectively and quickly.
Social protection measures, such as cash transfers, play a vital role in protecting children and their families from poverty and its negative impacts. Well-designed and funded social protection systems can lift children out of poverty, ensure access to services and opportunities, and mitigate the impact of sudden economic or natural disasters.
