Numerous brain areas work in concert to subserve memory, with distinct memory functions relying differentially on distinct brain areas. For example, semantic memory relies heavily on posterior cortical regions, episodic memory on hippocampal regions, and working memory on prefrontal cortical regions. This article reviews relevant findings from computational cognitive neuroscience on why different neural regions might be specialized for different types of memory, and how this might impact early memory development. These findings demonstrate computational trade-offs among different memory functions, such that a single system cannot specialize on more than one function. Instead, the anatomical and physiological specializations of posterior cortical, hippocampal, and prefrontal cortical regions support their associated functions. This computational framework provides a mechanistic way of understanding memory distinctions described at the conceptual level. The developmental relevance of this framework is discussed--in the context of specific models, where available--for category learning, infantile amnesia and developmental amnesics, and the development of flexible behavior.