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Families raising infants and toddlers experience singular joys—and unique challenges. Against a backdrop of an improving economy, many new parents struggle to pay for basic expenses, find affordable child care, and balance work with family responsibilities.

In this fact sheet, we explore the extent to which families of young children experience material hardship and psychological distress using a unique data source, the Urban Institute’s Well-Being and Basic Needs Survey.

This fact sheet also highlights recent research on the effects of both material hardship and serious psychological distress on infant and toddler growth and development as well as steps policymakers can take to mitigate the harmful effects of hardship and distress on families with young children.