This report is the seventh to present nation-wide data on the well-being of U.S. children. The statistical portrait is based on indicators of child well-being and on contextual measures describing the changing population and family context. Part 1 of the report, "Population and Family Characteristics," presents data that illustrate the changes that have taken place during the past few decades in nine measures depicting the context of children's lives, including children as a proportion of the population, racial and ethnic composition, and family structure and children's living arrangements. Part 2 of the report, "Indicators of Children's Well-Being," presents data on 25 key indicators in the areas of economic security, including secure parental employment, and access to health care; health, including a new "overweight" indicator; behavior and social environment, including substance abuse, and youth as victims or perpetrators of violent crimes; and education, including families reading to young children and high school academic course taking. For each background measure in part 1 and indicator in part 2, three components are presented: statements about why the measure or indicator is important, figures showing important facts about trends or population groups, and highlights with information on the current status, recent trends, and important differences by population groups noted. This year's report reveals significant progress in several dimensions of well-being: adolescents are more likely to take honors courses, children overall are less likely to die in infancy or in adolescence, young women have continued the downward trend of giving birth in adolescence, and after a decade-long decline, the share of children with married parents has remained unchanged since 1996. Less progress has been realized in the economic security of children. The poverty rate remains stable, the percentage of children with a parent employed full-time declined slightly, and the percentage of households with children that encountered housing problems maintained the same rate since 1995. A special section of the report details changes in the lives of American children from 1990-2000 for selected measures of population and family characteristics, economic security, and education. The report's appendices include detailed data tables and data source descriptions. (HTH)