What is the effect of poverty on self esteem development in the young?

What does poverty mean for children? How does the relative lack of income influence children’s day-to-day lives? Is it through inadequate nutrition; fewer learning experiences; instability of residence; lower quality of schools; exposure to environmental toxins, family violence, and homelessness; dangerous streets; or less access to friends, services, and, for adolescents, jobs?
Poor children suffer higher incidences of adverse health, developmental, and other outcomes than other children. The impact on the well-being of children and youths considered in some detail in this article include physical health (low birth weight, growth stunting, and lead poisoning), cognitive ability (intelligence, verbal ability, and achievement test scores), school achievement (years of schooling, high school completion), emotional and behavioral outcomes, and teenage out-of-wedlock childbearing. Children living below the poverty threshold are more likely as well-to-do children to experience learning disabilities and developmental delays. Children who live in poverty are often influenced by family stresses that others do not have. It should not be their problem to worry about where money is coming from for their next school trip or groceries next week and yet they do. This can humiliate them further if they are centered out or made to feel different when they cannot present the proper funds for things like school activities.
Other factors related to poverty that affect children’s self-esteem: The stigma attached to people living in poverty would not seem to influence children but it does. Class division distinctions begin young and some are taught to create schisms where there might not have been any. While the support of friends is beneficial to children, the humiliation of peers pointing out what they are lacking can be devastating. Most children want to blend in with others but in some circumstances, they involuntarily stand out.
In recent years, there has been a huge push by the media to obtain expensive brand name clothing. Children are influenced as well and many notice what others are wearing and want to imitate that. If someone has outgrown their clothes or is not wearing the latest “in” thing they can become a target and stigmatized. Access to other activities can be a problem as well which can contribute further to a child’s negative emotional state. The effects of a child’s poor self-esteem can influence the quality of their education as well. If they are not feeling confident in their own abilities, it then can influence the outcome of their schoolwork and possibly their future employment prospects. One can see how a cycle of poverty and low self-esteem might be hard to break. While parents praising children for their successes are important, laying it on too thick can actually backfire according to a recent study. Apparently, when expectations are too high children become pressured and are so afraid to make mistakes that they then may avoid things that look challenging. Criticizing children too much can also be damaging to self-esteem so there is a balance to be found between the two.
Sometimes one teacher, aunt or friend can influence a child enough to make a difference and if everyone kept that in mind and treated each other with respect and dignity, it could help avoid negative outcomes for children’s futures financially and emotionally.