The author investigates the impact of economic stress & unemployment on families & in particular, on their children’s behavior. Subjects were 52 white, intact, blue-collar families. 57% had fathers who had been unemployed within the previous 2 years. Each family had a child in kindergarten. Parents were interviewed & tested with the IPAT; children were observed (at kindergarten) for 10 min. periods. Children of families with financial losses generally had lower peer acceptance.