The most well-documented effect of childhood poverty is on educational achievement. The lack of education achievement has a cascade effect on children's life chances because those who grow up poor have lower literacy rates, higher rates of dropping out, and higher delinquency rates. Research shows very clearly that illiteracy is strongly correlated to delinquency and criminal behavior. Another major consequence of poverty is that low income often leads to residence in extremely poor neighborhoods characterized by social disorganization and few resources for child development. Other well-documented effects of child poverty are on nutrition and health.
Research shows clearly that poor children experience diminished physical health.
While few children in America actually starve, nutritional deficits have marked effects on the growth, eventual height, and possibly cognitive development of children raised in poverty. Poor children suffer from emotional and behavioral problems more often than nonpoor children, although these effects are less strong than the effect of poverty on educational achievement. The short-term investments should be in education and health for poor children. Wise investments in poor children can reduce public expenditures in the future. A long-term strategy must involve the availability of good jobs, with living wages and family health benefits.