Economic Context 

The concept of economic hardship encompasses many aspects, including poor living conditions and unstable employment, as well as housing issues and starvation. The examples of economically disadvantaged families discussed in the current text include single-parent households that are struggling financially and couple families living on a low income where the issue of housing stress or bad living conditions arises.

It is a common mistake to treat economic hardship as parental failure. Economic inequalities of the society have an impact on children's rights and abilities to acquire needed resources, while such factors as employment, housing affordability, government aid, and accessibility to affordable preschool shape family welfare (Grace & Baird, 2022).

 

The ecological models of Urie Bronfenbrenner explain the effects of the abovementioned factors on families. Financial stress can directly influence the child's microsystem through housing and food availability, as well as family routines and parent-related stress, while the exosystem and macrosystem will include such factors as employment systems, housing markets, and government policies (Grace et al., 2022).  After the implementation of these models, educators stop blaming families for the problems caused by the influence of social structure.

There is still considerable inequality in wages and income in Australia. Some 1.26 million low-income households were financially stressed with housing in 2024–25, whereas the proportion of relatively disadvantaged lone parent households with children was 42% compared with 6.5% of couple-family households with children (Australian Bureau of Statistics [ABS], 2026; Australian Institute of Health and Welfare [AIHW], 2025). This shows that there is not a uniform experience of economic disadvantage among families.

Impact on Children and Families

Financial difficulties can influence the ability of children to grow, receive education, stay healthy and create lasting interpersonal relationships. High housing expenses may make it hard to access nutritious food, see a medical specialist and use public transportation, as well as create an unstable living situation (AIHW, 2025). While financial problems may lead to parents’ stress, good relationships and communities as well as high-quality early childhood education may protect children from their adverse effects (Grace & Baird, 2022). In preschools, educators may notice problems in attendance, transport, or participation and respond to them in an appropriate manner.

 

Social Policy and Australian Response

The CCS facilitates access to quality early childhood services, while also having the 3 Days Guarantee which assures provision of 72 subsidised hours of service every two weeks and 100 hours to kids from Aboriginal and Torres Strait Islander background (Australian Government Department of Education, 2026). Housing assistance and family welfare services in Victoria can enhance stability. The Australian Early Development Census collects information regarding five different areas of development at the community level, which helps in the identification of opportunities and potential problems in services (AEDC, 2025). All these measures help to understand that barriers to participation may be reflective of social issues rather than disengagement of families.

Five Evidence-Based Strategies for Practice
  1. Build respectful, family-centred relationships
    Recognise parents and carers as knowledgeable partners, listen to their priorities and discuss financial barriers privately without making assumptions about their needs (Raising Children Network, 2024).
  2. Reduce financial barriers to participation
    Minimise unnecessary costs, use low-cost or recycled materials and ensure children are not excluded from experiences because of their family's capacity to pay (Grace & Baird, 2022).
  3. Maintain predictable routines
    Familiar educators, visual schedules and consistent transitions can provide stability for children experiencing uncertainty outside the service (Grace et al., 2022).
  4. Connect families with practical support
    With consent, educators can refer families to housing, food relief, financial counselling and family-support services. Collaborative practice allows different professionals to contribute appropriate expertise (Baker et al., 2022).
  5. Build children's agency and resilience
    Play, problem-solving, emotional literacy and strengths-based conversations can build confidence while ensuring children are recognised for their abilities rather than defined by poverty.

Community and Professional Partnerships
  1. Services Australia – Provides information about CCS, Family Tax Benefit and other payments. Educators can direct families to current information rather than providing financial advice themselves.
    https://www.servicesaustralia.gov.au/
  2. Ask Izzy – Helps families locate housing, food, health, financial and other community services by location.
    https://askizzy.org.au/
  3. Launch Housing – Supports Victorian families and individuals experiencing homelessness and housing insecurity.
    https://www.launchhousing.org.au/
  4. Foodbank Victoria – Provides food-relief programs and connections for people experiencing food insecurity.
    https://www.foodbank.org.au/VIC/
  5. Financial counsellors/social workers – Can assist families with financial stress, housing systems, advocacy and referrals. ECEC services can collaborate through consent-based referrals and multidisciplinary planning.

Resources

Four Programs, Projects or Websites

Raising Children Network – Evidence-informed Australian information for parents and professionals. Educators can use it to locate family-centred resources without presenting families through a deficit lens.
https://raisingchildren.net.au/

Australian Early Development Census (AEDC) – Provides community-level information across five areas of child development. Educators can use the data to identify community strengths and developmental vulnerabilities and support responsive planning and partnerships (AEDC, 2025).
https://www.aedc.gov.au/

Foodbank Australia – Useful for locating food-relief information and discussing community support systems.
https://www.foodbank.org.au/

Child Family Community Australia (CFCA) – An information exchange of the Australian Institute of Family Studies that provides evidence-based research, practice resources and professional support for people working with children, families and communities (Australian Institute of Family Studies [AIFS], 2022).
https://aifs.gov.au/research-programs/child-family-community-australia

 

Four Children's Storybooks

Those Shoes – Maribeth Boelts
Supports discussion about wants and needs, friendship and generosity. Educators can focus on empathy rather than asking children about their family's finances.

Last Stop on Market Street – Matt de la Peña
Encourages children to recognise beauty, relationships and community strengths rather than associating wellbeing only with material possessions.

A Chair for My Mother – Vera B. Williams
Explores saving, family cooperation and recovery following hardship.

Maddi's Fridge – Lois Brandt
Introduces food insecurity through friendship and caring. Educators can use it to discuss helping others without attaching shame to needing support.

 

Four Videos/Shows/Media Resources

Play School – Episodes about homes, families and communities can introduce different living circumstances through familiar, age-appropriate experiences.
https://www.abc.net.au/abckids

Sesame Street in Communities – Provides resources relating to family wellbeing, emotions and difficult life circumstances.
https://sesameworkshop.org/resources/

Daniel Tiger's Neighbourhood – Supports emotional regulation, cooperation and help-seeking.

Bluey – Selected episodes can support conversations about imaginative play, relationships and enjoying experiences without focusing on material possessions.
https://www.abc.net.au/abckids

 

 

The video elaborates on the fact that children living in Australia face significant challenges when it comes to food security as well as housing pressures and financial hardships due to the cost of living crisis.