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In this paper, we examine the effect of income on child development, as measured by scores on cognitive, behavior, and social assessments. Children's scores on various cognitive assessments have been shown to be related to success as adults. For instance, Currie and Thomas (1999) find that children's test scores at age seven are positively related to their employment and earnings as adults - even when a rich set of controls are included in the regressions. Consequently, addressing the question of whether higher levels of financial resources help children perform better on achievement tests may inform policies that aim to help children succeed as adults...Our results indicate that the relationship between income and test scores is, in fact, stronger in the US than in Great Britain when no other characteristics of the child or her family are taken into account. However, once controls for background characteristics and the mother's ability are included, the impact of income on child outcomes is very similar in the two countries. Our estimates of the effect of income on child outcomes are in line with those from previous studies that use US data: income has a positive and significant, but small effect on child development.