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How Poverty Impacts Children’s Mental Health and Educational Outcomes

This post was updated on May 2, 2025.

In recent years, especially after the COVID-19 pandemic, mental health has been an often-talked-about topic for people of all ages, and especially that of children.

When children struggle with their mental health, they may face anxiety, depression, ADHD, or other emotional and behavioral challenges.

For children who live in poverty, the everyday burdens of their difficult circumstances can be detrimental to their mental health, which can jeopardize their success in school and their chances of escaping poverty in adulthood.

Mental health struggles are prevalent among kids in poverty.

According to a 2022 report by the CDC, among children living below 100% of the federal poverty level, more than 1 in 5 have a mental, behavioral, or developmental disorder.

Kids in poverty do not have access to the same support systems as their higher-income peers, which makes it difficult for them to get proper medical care to mitigate the long-term effects of their mental health struggles.

The correlation between living in poverty and mental health struggles is related to exposure to stress.

Kids growing up in poverty endure stress that can be overwhelming, constant, and deeply harmful. Some of the stressors they experience include:

  • Food and housing insecurity
  • Lack of access to clean clothes, hygiene products, or school supplies
  • Parental unemployment
  • Chronic illness or death of a caregiver
  • Exposure to violence or substance use

This kind of prolonged hardship—called toxic stress—can change how a child’s brain develops. It affects their ability to concentrate, retain information, regulate emotions, and succeed in school.

Poverty and mental health struggles affect academic success.

According to the CDC, “Being mentally healthy during childhood means reaching developmental and emotional milestones, learning healthy social skills, and coping with problems.”

But for children in poverty, simply getting through the day can be a struggle.

Students in poverty often:

  • Have trouble focusing or engaging in class
  • Struggle to comprehend new information or experiences
  • Feel ashamed of their appearance due to a lack of clothing and hygiene products
  • Avoid social interactions with their peers
  • Feel embarrassed over their socioeconomic status and home environments

Over time, these issues can lead to falling grades, chronic absenteeism, and, eventually, dropping out. In fact, low-income students are 10 times more likely to leave high school before graduation compared to their more affluent peers.

COVID-19, inflation, mental health, and student success

The COVID-19 pandemic placed an exorbitant amount of stress on children, who are already the most vulnerable members of our society.

  • More than eight million Americans entered poverty during COVID-19.
  • Children and teens faced parental unemployment, deepened poverty, learning loss, forced employment, and other life-altering impacts.
  • More than 300,000 children lost a parent or caregiver due to COVID-19.

The subsequent inflation crisis wreaked havoc on families’ budgets, ability to afford basic necessities, and the mental health of individuals of all ages.

Why it matters – and how you can help

Children are the largest age group living in poverty in the U.S. If we don’t intervene, the mental health and educational struggles they face today will impact generations to come.

At Catie’s Closet, we’re committed to removing the barriers poverty creates. By giving children access to clean clothes, toiletries, and essentials, we restore dignity, confidence, and a sense of belonging—basic needs that build the foundation for mental health and academic success.

Ready to help?

Join our email list to learn more about how Catie’s Closet’s mission impacts children’s mental health and how you can support our work. Already on our list? Learn more ways to get involved!

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