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This literature review looks at main international studies on social capital and children's and youth's wellbeing, presents a critical analysis of the concept and discusses its relevance as a reliable predictor of positive future outcomes for children and young people. It outlines both family social capital indicators - including family structure, quality of parent-child relations, adult's interest in the child, parent's monitoring of the child and extended family exchange and support - and community social capital indicators - which comprise social support networks, civic engagement in local institutions, trust and safety, degree of religiosity, quality of school and quality of neighbourhood. The article calls for further empirical scrutiny of social capital predictors, while accepting that the impact of social capital on children's future attainments is second only to poverty