This briefing note considers the economic impact of HIV and AIDS on children and explains why programs need to strengthen the livelihood and economic skills and resources of children, families and communities. It outlines the key principles of programming to improve the economic situation of children affected by HIV and AIDS, and describes possible ways of taking action to strengthen the livelihood and economic skills and resources of children, families and communities. Case study examples are included to illustrate practical application of some of these principles and strategies.