Economic disadvantage may be visible in poverty, financial instability, and issues related to housing, although these terms may not be used interchangeably. Poverty is defined as a state in which one lacks the finances necessary for a decent standard of living. Financial strife occurs when the household cannot cover the basic living costs, such as paying bills, rent or mortgage. According to AIHW (2025), in 2019–20, 42% of low-income households renting private properties were experiencing housing stress, spending over 30% of their income on accommodation costs.
Contexts in early childhood education and care (ECEC) matter, as children as a whole are affected by circumstances in their societies. In 2022-2023, there were 3.706 million people in Australia under the poverty line after housing costs—among them, 757,000 are under 15 years old, which accounts for 15.6% of all children in Australia (Australian Council of Social Service [ACOSS] & UNSW Sydney, 2025, p. 5) It should be noted that economic hardships are not due to the structure of the family. Single-parent, nuclear, extended and multigenerational families may all face hardships. In modern Australia economic disadvantage is changing due to the rising costs of accommodation and living and resulting pressures experienced by families in different situations with regard to work, housing and family life.
The family stress model illustrates how economic pressure leads to carer distress and creates tension in families and indirectly affects children’s wellbeing and development (Neppl et al., 2016, pp. 12–21). According to Bronfenbrenner’s ecological systems theory, children go through different things because of a combination of family, ECEC service, employment, housing and broad social policy influences (Bronfenbrenner, 1979, as cited in Nolan & Raban, 2015). A social determinants approach highlights the shift of attentions from taking parents' choices into consideration towards the role of structural inequalities in terms of income and housing as well as service access. Studies conducted in Australia that are dedicated to effective ECEC responses to the economic challenges support this approach because such services must be approachable, affordable, accessible, appropriate and available instead of expecting families to overcome structural obstacles on their own (Skattebol et al., 2023).
(Australian Council of Social Service [ACOSS] & UNSW Sydney, 2025)
(AIHW, 2025)
Impact on Children and Families
Economic difficulties may impact the growth, education, health, wellbeing, relationships, and participation of children. The lack of households’ resources may have an effect on feeding, sleeping, health assistance, suitable clothing, school materials, and opportunities to participate in different events or community activities. An Australian study based on 4,355 children aged four to five suggested that inappropriate housing is connected with lower physical, psychosocial, emotional and educational functionality as well as a lower frequency of using health services. However, considering the nature of the study, it provides evidence of association instead of proof of the influence of housing on outcomes (Li et al., 2024, pp. 1265–1267)
Therefore, housing instability can result in recurrent relocations, travel challenges and interruptions to ECEC participation, thereby impacting children’s connections, sense of belonging and involvement (Li et al., 2024, pp. 1260–1265). Financial difficulties can also be masked if parents limit their own consumption to shield their children from such information (Skattebol et al., 2023). This means that educators should refrain from interpreting irregular attendance, unpaid fees, or inadequate clothing as poor parenting
In order to accommodate different needs, ECEC services could offer flexible enrolment, discreet assistance, stable educator relationships, and referrals to networks that may be useful for families in need (Skattebol et al., 2023, pp. 7–9). ECEC services should also make sure that excursions, celebrations, and material requests do not set barriers for children whose families are unable to afford additional costs
(Center for Poverty & Inequality Research, 2016)
Social Policy & National Responses
The Child Care Subsidy (3-Day Guarantee), established by the Australian Government on the 2nd of January 2026, gives families eligible for the Child Care Subsidy at least 72 hours of subsidised care within a fortnight irrespective of their activity level (Australian Government Department of Education, 2026). As a result, families with limited employment will have better access to ECEC services; however, there are still some obstacles such as gap please, transport issues, and service availability
In Victoria, the Free Kinder programme lowers the cost of daycare; it provides four-year-olds with free 15-hour sessions of kindergarten, while three-year-olds have programmes lasting between 5 and 15 hours, depending on their location (Victorian Government, 2026). However, having financial access does not guarantee that services are easy to access.
The housing crisis still remains a problem. In 2024–25, around 1.26 million households in Australia with low income were facing housing stress (AIHW, 2026). The Commonwealth Rental Assistance Programme of the government helps renters who qualify under this scheme, while the Australian Government plans to spend $47 billion on the development of the housing sector (Australian Government Treasury, 2026). These initiatives can address some of the issues related to finances, but they cannot solve all housing-related issues such as instability, overcrowding, or lack of access.
(Logan, 2025)
(Victorian Government, 2026).
(Affordable SA, 2026)
(The Treasury, 2026)
01
Respectful communication
Remove hidden costs
With consent, connect families with housing, food and financial services.
EYLF Connection
1.1: Feel safe, secure, accepted and supported
Address the family issues in private and non-judgmentally.
EYLF Connection
1.1: Feel safe, secure, accepted and supported.
Offer free options for excursions and materials.
EYLF Connection
2.1: Develop a sense of connectedness to groups and the community
Continue to work with familiar educators and routines during housing changes.
EYLF Connection
1.2: Act with increasing autonomy, interdependence, resilience and sense of agency
02
Protect continuity
Universal support
Warm referrals
Offer children food, clothing, and learning materials.
EYLF Connection
3.1: Become strong in their social, emotional and mental well-being
03
04
05
(WashU Brown School, 2024)
Community and Professional Partnerships
Organisations and Roles and ECEC Collaboration
National Debt Helpline
Write a short description of this category
Offers free, private financial counselling. Educators can make confidential referrals for those families in need of help with repayments and bills
Assist families in Victoria who are homeless through housing, case management and programmes focused on children. Educators can coordinate support workers to assist families with childcare in the process of moving
Offer food to families in need by means of the network of partners. ECE centres can refer families to food relief services nearby.
Launch Housing
Foodbank Victoria
Services Australia Social Workers
Assist people in crisis through counselling and support services. Educators can help families access this support with consent.
Uniting Vic.Tas Emergency Relief
Provide food, clothing, and transport, as well as help with bills and rent. Educators can help families obtain the necessary assistance by means of referrals
Offer food to families in need by means of the network of partners. ECE centres can refer families to food relief services nearby.
Curated initiatives, policy frameworks, research projects, and digital platforms addressing economic hardship and financial stress in early childhood contexts.
• Resource 01
• Resource 02
Emerging Minds: Money, Housing and Health
Ask Izzy
Aids teachers in getting knowledge about the impacts of financial and housing struggles on children and facilitates honest conversation between families.
Aids teachers and families in finding local housing, food, financial, health and counselling assistance.
• Resource 03
• Resource 04
HIPPY Australia
Access to Early Learning
Offers the free early childhood learning and parenting programme at home to utilise the skills of learning through games, books and various situations.
Helps eligible Victorian families enrol in and sustain kindergarten participation while linking them with additional supports.
Resources for Educators and Children
Curated storybook selections supporting early childhood education from birth to five years, focusing on social and economic contexts in contemporary Australian early learning environments.
Explores financial loss, saving, family cooperation and community support.
Motivates young children to doubt their beliefs regarding the idea that having money means being happy
Explores homelessness while emphasising family connection, routine and different meanings of home.
Explores hunger, companionship, self-respect, and the importance of assistance from an adult whom one trusts.
A structured multimedia analysis evaluating digital video, broadcast shows, and educational audio resources designed for children from birth through five years of age.
Resource 01
Resource 02
The Smith Family: Tales of the One in Six
Sesame Workshop: Home Is…
Animated life stories help kids see how people are affected by poverty in the areas of food, education and everyday experience while developing empathy.
Resource 03
Resource 04
ABC Behind the News: Fred’s Van
Storyline Online: Rent Party Jazz
Children learn that people may not always have a stable home as they talk about things like safety, feeling secure and being included emotionally.
The story talks about homelessness and challenges in the area of food and community support. Teachers can talk about such values like kindness and how communities help people in need.
The story talks about job loss and difficulty paying for the home while showing how neighbours work together and help develop empathy.