Utilizing standardized instruments, family and demographic predictors of general and problem-solving knowledge pertaining to diabetes were identified in 53 newly diagnosed children. Mothers, fathers, and children scored significantly higher on the general information component than on the problem-solving knowledge test. Parents of youth ages 15-18 scored significantly lower on both components of the knowledge test than parents of younger youth. Multivariate analyses identified 5 predictors of general information and problem-solving knowledge: child's age, family socioeconomic levels, family stress, family communication abilities, and financial resources. Results suggest that education programs should emphasize problem-solving ability as well as general knowledge, and target parents of older teenagers. Moreover, assessment of family stressors and resources should be routinely performed in families of newly diagnosed children.