Originally posted by hardy_conrad:

Does that mean the wealth is increased, because children would otherwise not earn an income and therefore drag down the calculation?

If I recall correctly, the way wealth levels work is that you divide the household's gross income by the number of adults, subtract off some amount for each minor child, and then compare the result to the threshold values to determine the household's wealth bracket. Child Allowances removes the penalty for having minor children in the household, but doesn't actually add anything to the household's real income.