Economically disadvantaged children often lack the resources to purchase popular goods and participate in their preferred social groups' activities, making it difficult to fit in. Meanwhile, children from middle socioeconomic status (SES) families may have additional influence over whether low SES children are included in such groups. We examined how a middle SES sample of 333 4- and 8-year-olds felt and reasoned about excluding a child who is economically disadvantaged (i.e., a needy child) versus a child who attends another school (i.e., a less needy child). We also examined whether children's dispositional sympathy was associated with their negatively valenced moral emotions (NVMEs) after hypothetically excluding. Older children reported feeling more NVMEs for both targets of exclusion. Furthermore, unlike 4-year-olds, 8-year-olds differentiated between the targets of exclusion by reporting more NVMEs after excluding a child who is economically disadvantaged. Lastly, children's sympathy was positively associated with their NVMEs after excluding a child who is economically disadvantaged but not a child who attends another school. We conclude that with increasing sympathy and age, children likely become more sensitive to the needs of their disadvantaged peers--an effect with meaningful implications for improving peer relationships across socioeconomic spheres.