The reciprocal relationship between self concept and academic achievement was investigated using a two-wave, two-variable, multiple-indicator design. The Self Observation Scales (SOS) and Stanford Achievement Test (SAT) were used to measure self concept and academic achievement, respectively. A sample of second grade children and their families were studied. Family socioeconomic status (SES) information was collected during semi-structured home interviews. Family environment information was collected in the same manner. LISREL was used for covariance structural analysis. Reading and mathematics achievement scores were positively associated with self concept in the sample population. The relationship was stronger for reading, than for mathematics, achievement. Achievement performance appeared to influence self concept more strongly than self concept affected achievement. Self concept appeared to be connected to parental educational and occupational expectations. Parents influence their child's cognitive development and achievement performance through creation of an intellectually stimulating home environment, as well as through their interactions with, and expectations of, their child. (DWH)