Over 2.4 million grandparents are responsible for raising their grandchildren (custodial grandparents; CGs). CGs have high levels of stress and many experience financial hardship. Additionally, their grandchildren are vulnerable to psychological disorders. Parenting research has found low-income, child behavioral problems, and stress are clearly linked with dysfunctional parenting strategies. The current study examined how these factors are associated among grandfamilies. 79 CGs of 6- to 12-year-old grandchildren completed measures of general stress, parenting stress, parenting strategies, and child behavior. It was hypothesized that parenting stress would be more strongly correlated with both dysfunctional parenting and child behavioral problems compared to general stress. Further, it was hypothesized that both parenting stress and dysfunctional parenting would predict child behavior and that general stress would not explain additional variance in child behavior. Finally, income was expected to moderate the associations between parenting stress and child behavior, as well as dysfunctional parenting and child behavior. Parenting stress was significantly correlated with parenting and child outcomes, and general stress was similarly associated. Parenting stress and dysfunctional parenting were predictive of child outcomes. However, general stress did explain additional variance in child behavior over and above parenting stress and parenting. Further, income did not moderate the associations of parenting and child behavior, nor parenting stress and child behavior. Consistent with previous research, grandparents’ parenting and general stress were high, grandchildren had high levels of behavioral problems and many families had low-income. Our findings highlight the need for a comprehensive treatment approach when working with grandfamilies.