Modern Australian
The Times

Children have a basic understanding of poverty – a more equal society means talking to them about it

  • Written by Patrick Leman, Pro-Vice Chancellor, Professor of Psychology, University of Waikato
Children have a basic understanding of poverty – a more equal society means talking to them about it

Rates of child poverty in Aotearoa New Zealand remain stubbornly high, despite the issue being the focus of considerable political attention while Jacinda Ardern was prime minister.

In 2022, 120,000 children in New Zealand were being raised in households experiencing material hardship. This means their family is unable to afford essential items such as food, clothing, accommodation, heating and transport.

Alongside the obvious and pernicious direct effects of poverty on a person’s health and life prospects, there is a broader issue of what rising economic inequality may mean for all of us in the long run.

As we look at the consequences of poverty, we also need to ask what children themselves – the “kids who have” and the “kids who have not” – understand about the unequal world around them.

Stages of understanding

Statistics about childhood poverty tell part of the story of the widening gap in income and wealth. But children’s perceptions and understanding of economic inequality, and their experiences of it, will shape how future generations deal with the social upheaval it may bring.

So how do our children learn about, or perhaps learn to tolerate, inequality? Just for a moment, let’s set aside political or moral positions. For children growing up in poverty there are undeniable negative consequences on their physical and mental health, and their education.

Read more: We must go beyond singular responses in the fight against child poverty

Over the course of a person’s life, this disadvantage restricts opportunity. Rising levels of poverty risk creating a cycle of inequality that continues into the future as those raised in poverty become adults.

Research indicates a consistent developmental pattern in how children acquire an understanding of economic inequality.

Before five years of age, children grasp only very basic distinctions between rich and poor. Older children can link wealth to work, albeit in a linear way: that is, they believe working hard leads to wealth.

And at around ten years, children start to consider effort, education, inheritance and occupation as factors affecting wealth.

Children understand fairness

Through most of childhood, wealth and poverty is framed in terms of basic stereotypes attributed to individuals. While these explanations can persist into adulthood, adolescents increasingly consider inequality more in terms of its structural, political and economic causes.

Children may not grasp the social and structural features that relate to economic inequality. But as any parent can tell you, you’ll find out pretty quickly if a child thinks something isn’t fair.

Of course, questions of inequality are intimately bound up with questions of morality. So while there is arguably limited reward in a conversation with your three-year-old about the finer points of macroeconomic theory, instilling a straightforward ethic of fairness and the principle of equality (or equity) from a young age is worthwhile.

Read more: The cost of living crisis means bolder budget decisions are needed to lift more NZ children out of poverty

The broader social and political context matters too. Public discussions on individualistic versus structural explanations for inequality, and the prevailing political milieu, provide important backdrops for how children will frame and discuss inequality at home, school and among their peer group.

For instance, children and adolescents in Finland – one of the world’s most economically equal nations – use more structural explanations in discussing poverty compared with those from more unequal nations.

In nations with relatively high levels of economic inequality (such as New Zealand and the United States), people frequently believe wealth is based on individual merit.

Subverting meritocracy

Yet at the same time, poverty is associated with stigma. Stereotyping means poor people are more likely to be viewed as lazy or unintelligent. These stereotypes entail social influences that can diminish poorer children’s self esteem, increase their anxiety and lead them to under-perform in academic assessments.

Conversely, children from more affluent families may be more confident of their ability. Compounded with the different opportunities for support afforded to rich and poor children, this may lead those from less affluent families to lack the confidence to seek and reach their potential.

Read more: Child poverty is at a 20-year high – but in one English community, children themselves are intervening

Human psychology subverts the supposed meritocracy in other ways. Adolescents tune in to social networks, status and hierarchies. Research from Wales found that moving to a high school with more affluent classmates negatively affected less affluent children’s mental wellbeing.

In fact, these self-perceptions of class predict physical and mental health inequalities later in life better than objective measures of wealth.

Read more: Global inequality must fall to maintain a safe climate and achieve a decent standard of living for all – it's a huge challenge

Not all bad news

Unequal societies have lower levels of social cohesion. Economic inequality is associated with less subjective wellbeing, even among the more affluent members of a society.

In other words, everyone is less happy. And rising economic inequality intersects with societal “faultlines” such as race and gender which are ripe for political exploitation.

In the future, economic inequality may be as much a consequence as a cause of the challenges future generations will face – climate change, for example. But it doesn’t have to be all bad news.

Historically, levels of income inequality have tended to fluctuate (albeit often as a consequence of financial crises or wars). So future economic inequality is not inevitable. And even if we adults cannot generate the political will or moral consensus to change things, maybe we can do our bit by nurturing and empowering a generation that can.

Authors: Patrick Leman, Pro-Vice Chancellor, Professor of Psychology, University of Waikato

Read more https://theconversation.com/children-have-a-basic-understanding-of-poverty-a-more-equal-society-means-talking-to-them-about-it-202820

Caravan Sales in Queensland: How to Find the Right Caravan for Sale QLD

Caravan ownership is about more than having somewhere to sleep while travelling. For many Queenslanders, it is one of the best ways to explore regio...

What Sir Walter Buffalo Turf Actually Costs in 2026 (And Why Quotes Vary So Much)

Two quotes landed on a Hills District homeowner's kitchen table last spring for the exact same 80-square-metre backyard. One said $12 a metre. The o...

Nearly 1,300 NSW Hospital Beds Are Occupied By People Who Are Ready To Go Home

1,276 people in NSW hospitals have been medically cleared for discharge but remain in hospital because they're still waiting for NDIS or aged care sup...

National Survey Launched to Measure Operational Impacts of Federal NDIS Policy Reforms

The effects of recent NDIS reforms are beginning to move beyond policy papers and into day to day service delivery. A new national survey is asking ...

Beyond the Nappy Cake: Baby Shower Gifts That Get Used

What new Australian parents unwrap, keep, and quietly thank you for months later. Six weeks after my daughter was born, I did an audit of the baby sh...

Parent-Advocates Are Reshaping Frontline Disability Service Delivery

Parents have always been part of the disability sector. They advocate, coordinate services, challenge decisions and often become the person holding ev...

Vista Cruises Enters "Two-Flagship Era" as Vista Aurora Completes Inaugural Voyage

Vista Aurora Sets Sail along the Yangtze. (Photo courtesy of the company)YICHANG, China — August 5, 2026 — Vista Aurora, a high-end interprovinc...

A Digital Preparation Checklist For International Medical Conferences

An international medical conference compresses many responsibilities into a few days. A delegate may need to present research, move between venues, ...

The Growing Popularity of Lab Grown Diamonds in Sydney and Hong Kong

The diamond industry has changed significantly in recent years as more buyers seek ethical, affordable, and sustainable alternatives to mined diamon...

Modern AI SEO Agency vs Traditional SEO: What’s the Difference

Search engine optimisation has changed dramatically over the past few years. Search engines have become smarter, user behaviour has evolved, and bus...

Caravan Travel for Modern Australian Getaways: Plan a Comfortable Holiday

A family road trip is one of the best ways to explore Australia together. And, travelling by caravan gives you the freedom to take your time, stop a...

Mini Excavator and Trailer Package for Sale: What I Buy as One Deal in 2026

The first client who asked me for a mini excavator and trailer package for sale wasn’t trying to save a few hundred dollars on shipping. They we...

Make Dad a Guest in His Own Home This Father’s Day

Father’s Day can accidentally turn Dad into the unpaid event manager of his own celebration. He lights the barbecue, finds extra chairs, checks wh...

Where to Enjoy Your Off-Road Caravan on the Gold Coast

With a caravan, you can travel anywhere and everywhere without battling the rush of the peak holiday season or last-minute reservations. While the r...

How Osteopathy Supports Recovery from Sciatica and Nerve Pain

Sciatica isn't just annoying. It's genuinely painful. It sits deep in your glute and shoots straight down the back of your leg. It turns something as...

The Winter Jewellery Edit: Five Pieces You'll Wear All Season

As wardrobes shift to cosy knits, tailored coats and rich seasonal textures, jewellery becomes the finishing touch that pulls every winter outfit to...

7 Signs It's Time to Upgrade Your Piston Air Compressor

If you run a workshop, panel shop, or fabrication business anywhere around Perth, you already know what heat and dust do to equipment over a few sum...

How Long Do Bathroom Renovations Melbourne Take? Step-by-Step Process Explained

Planning a bathroom renovation is exciting, but one of the biggest questions homeowners ask is, "How long will it take?" While every project is uniq...