Poverty is related to all of the KIDS COUNT indicators. It is defined as the condition of not having enough income to meet basic needs for food, clothing, and shelter. The 2004 poverty threshold for a family of four was $19,223 per year. Poverty, however, is not just of an issue of income. It also represents a myriad of other issues including jobs with limited opportunity, inadequate housing, poor nutrition, insufficient education, and a lack of health insurance. Research has shown that children have a higher likelihood of being poor if they live in single-mother families than if they live in married-coupled families.

Childhood poverty has been associated with impaired development for younger children, lower school achievement, and increased behavioral and emotional problems. Thus, placing them at an unfair disadvantage for future career opportunities. Children living in poverty are also more likely to experience undesirable outcomes such as abuse and neglect.