Examines influence of household income on cognitive stimulation during the transition to school. Cross-sectional and longitudinal fixed effects regressions are estimated to examine income's effect. Household income was positively related to level of cognitive stimulation in children's home environments across both sets of analyses. Implication for programs and policies that reduce disparities in school readiness are discussed. (Contains 46 references, 3 tables, and 1 figure.) (BF)