Poverty can be explained as a multidimensional phenomenon that does not have an unique definition. EU has an increasing trend of children at risk of poverty and social exclusion (every 4th child is at mentioned risk). Even very short periods of deprivation can have serious consequences for a child,. On the other hand, early childhood interventions and relatively low financial investments in can have long-term benefits. Some of the consequences and correlations to poverty are: lower level of education, poor cognitive development, poor mental health,, parenting difficulties (economic stress as an important predisposing factor for an authoritarian parenting style) and negative consequences regarding later life opportunities (children are more likely to have long-lasting consequences, unlike adults). It is important to know the theoretical background such as the concept of a family resilience, the ecosystem theory and the social identity theory. Young people and families living in poverty can experience certain differences depending on whether they live in wealthier community where more rationalization is being used, schools are seen as the factor that can help breaking the poverty cycle. On the contrary, in poorer community social benefits are viewed as a primary family income, schools that can be finished sooner and also schools where a practical part is paid are choosed way more. The „vicious circle“ is inevitable to mention and breaking it can be extremely hard, that is why the intervention of the state, relevant experts and society is more than needed.