The independent and interacting effects of race and poverty on academic achievement were examined for all fourth through sixth grade children attending public neighborhood schools in St. Louis, Missouri between Fall 1968 and Spring 1971. The Iowa Tests of Basic Skills (ITBS) was given at four points in time during this period to a total of 27,465 students. Composite mean ITBS scores were calculated separately for blacks and whites for each poverty group for each point in time. Multiple regression equations were then calculated for each point in time to show the relative weightings of the race and poverty variables as predictors of ITBS scores. The results for each point in time are very similar, the white "least poor" group in any grade being about one school year ahead of the"extremely poor" black group as regards educational achievement. However, when black and white children within a poverty level are compared, differences are much smaller and are negligible or nonexistent for the "poor" group. The poverty variable is four to six times more predictive than the race variable. The close association between achievement and economic level strongly suggests financial education assistance be expanded to include the economic improvement of the families and neighborhoods in which underachieving children live. [This document has been reproduced from the best available copy] (Author/JM)