This research project attempts to investigate what happens to a learner's performance at school when he / she comes from a poor family background. It addressed the critical questions. The data was collected from learners of KwaMgaga High School, at Umlazi, an African township 30 km south of Durban. This is a case study research and both quantitative and qualitative methods were used in order to collect data although qualitative research methodology dominated the study. Issues of poverty and academic performance were investigated in the countries outside South Africa as well. Data was analyzed using descriptive statistics. The research findings emanating from the data proves that, indeed poverty impacts negatively on academic performance. Secondly learners from impoverished backgrounds experience many problems that affect their performance at school. If a child lives in poverty, he \ she is likely to perform poorly at school. / Thesis (M.Ed.) - University of KwaZulu-Natal, Westville, 2006.