Living in impoverished environmental conditions can vastly impact children-in their physical, cognitive, social, and emotional developments. Past research has mainly focused on the physical development and access to good quality educational resources, etc. Recently, more light has been shed on broader and complex impact of immediate and surrounding environments on the overall development of children. The current article will examine recent research on the influence of various factors-demographic (parental education, work, ethnicity, marital status), individual (family stress), relational (parenting, conflict), institutional (low-quality classrooms, neighborhood), and their impact on child's physical, emotional, and behavioral health, cognitive performance-learning, language, and achievement. Additionally, family stress model and parental investment models are examined for their significance in understanding childhood poverty. Role of resilience during such economic and social hardship, and its influence on the overall success of children during their growing years, and in later life was reviewed for their connections and relevance. The context of poverty is illustrated using various theoretical perspectives for further interpretations and understanding.