Income gains predict cognitive functioning longitudinally throughout later childhood in poor children.

Alleviating disadvantage in low-income environments predicts higher cognitive abilities during early childhood. It is less established whether family income continues to predict cognitive growth in later childhood or whether there may even be bidirectional dynamics. Notably, living in poverty may moderate income-cognition dynamics. In this study, we investigated longitudinal dynamics over 7 waves of data collection from 1,168 children between the ages of 4.6 and 12 years, 226 (19%) of whom lived in poverty in at least 1 wave, as part of the NICHD Study of Early Child Care and Youth Development. Two sets of dual change-score models evaluated, first, whether a score predicted change from that wave to the next and, second, whether change from 1 wave to the next predicted the following score. As previous comparisons have documented, poor children had substantially lower average starting points and cognitive growth slopes through later childhood. The first set of models showed that income scores did not predict cognitive change. In reverse, child cognitive scores positively predicted income change. We speculated that parents may reduce their work investment, thus reducing income gains, when their children fall behind. Second, income changes continued to positively predict higher cognitive scores at the following wave for poor children only, which suggests that income gains and losses continue to be a leading indicator in time of poor children's cognitive performance in later childhood. This study underlined the need to look at changes in income, allow for poverty moderation, and explore bidirectional income-cognition dynamics in middle childhood. (PsycINFO Database Record