Examined longitudinally maternal emotional distress, parental behavior, and provision of cognitively stimulating activities as mediators of the association between family income and prematurely born young children's development. Found that provision of stimulating experiences in the home mediated the relation between family income and children's cognitive ability and behavior problems at ages 3 and 5. Maternal emotional distress and parenting practices mediated the relation between income and children's behavior problems. (Author/KB)