The main point in this article is to conceptualise how demands connected to children's life conditions influence both children and caregivers. To pursue this aim I advocate an extension of Vygotsky's cultural-historical theory of children's learning and development. Vygotsky pursued a wholeness approach to children's development with his concept of "the child's social situation of development" as the child's dialectic experiential and motivational relation with his or her surrounding. This conception I extend with the concepts of institutional practice and activity setting. The conditions for children's activities are the institutional practice and its activity settings. But a child's activities in these settings also has to be seen from the child's perspective, that is, his or her motive orientation. To focus on the child's motive within an activity setting--requires the researcher to focus on the child's social situation of development to discern how the dialectic between the child's orientation within an activity setting and the demands from the setting and other persons influence the child's activities within the child's zone of proximal development. (Contains 5 footnotes, 1 table, and 1 figure.)