Research Findings: This study investigates the effect of the early home environment on self-regulation in preschoolers, and how self-regulation relates to later school achievement, while taking into account family resources. Participants were part of the National Institute of Child Health and Human Development's Study of Early Child Care and Youth Development. Our model tested paths from family income and maternal depression through parenting to dyadic and child outcomes, including attachment, self-regulation, and child cognitive outcomes in the 1st grade. Findings indicated that family income and maternal depression had a substantial effect on parenting practices. Children whose parents did not display negative affect toward them during episodes of depression were more likely to maintain healthy attachment styles. Parenting, which was directly affected by family income, was the most important predictor of children's cognitive development. Practice or Policy: Regarding implications for practice, this research indicates that parents who provide a safe and stimulating environment for their children, despite limited financial resources or mental health issues, are more likely to have children who are prepared for school. School counselors, child care administrators, and policymakers should be aware of the importance of parenting to school success and should provide opportunities for parent education and involvement during the first years of life.