Understanding the Psychological Effects of Poverty on Children in Low-Income Communities

Poverty remains a critical social determinant of child development, exerting profound effects on psychological well-being and mental health outcomes. This study quantitatively examines the psychological effects of poverty on children living in low-income communities, with particular attention to the roles of chronic stress and caregiver stress as underlying mechanisms. Using cross-sectional survey data collected from caregivers of children aged 6–16 years, the study employs descriptive statistics, correlation analysis, multiple regression, and mediation modeling to assess relationships between poverty-related factors and children’s psychological outcomes. The findings reveal that household income insecurity, food insecurity, and housing instability are significantly associated with higher levels of anxiety, depressive symptoms, and behavioral difficulties, alongside lower self-esteem. Regression results indicate that chronic stress and caregiver stress are strong predictors of adverse psychological outcomes. Mediation analysis further demonstrates that stress-related pathways partially explain the relationship between poverty and child mental health. Visual and tabulated analyses confirm the robustness of these associations. Overall, the results provide empirical evidence that poverty affects children’s psychological well-being both directly and indirectly through stress mechanisms, highlighting the need for integrated social and mental health interventions in low-income settings.