How Family Assets and Debts Relate to Children's Achievement and Behavior Problems Across Development

ABSTRACT Wealth matters for children's academic achievement and behavioral functioning; however, little is known about how the components of wealth, particularly assets and debts, uniquely relate to children's academic and behavioral development. NLSY79 ( N ≈ 7000; 50.9% male; 26.1% Black) data were used to examine independent links between assets, debts, and children's academic achievement and behavioral functioning. Additionally, we considered whether associations varied across early childhood (age 5–6), middle childhood (age 9–10), and early adolescence (age 13–14). Assets positively related to math ( b = 0.018, p < 0.001) and reading achievement ( b = 0.009, p < 0.001), while increased debts related to better reading scores ( b = 0.011, p < 0.01) but not math scores. For behavioral functioning, assets related to fewer internalizing ( b = –0.037; p < 0.001) and externalizing behaviors ( b = –0.042; p < 0.001), while debts related to greater internalizing behaviors only ( b = 0.009; p < 0.05). Models testing differences in associations between assets, debts, and child outcomes across developmental stage revealed that links between wealth and child outcomes varied by developmental stage. In general, associations between assets, debts, and child outcomes were larger in middle childhood and adolescence compared to early childhood.