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This paper discusses the relationship between minority ethnicity, well‐being and children's social capital in the light of data from a qualitative study on social capital among 32 British Punjabi primary school children. Through a broad overview of social capital literature on ethnic minorities and children's welfare, the case is made for placing children's well‐being in a contextual framework that acknowledges the variety and wealth of children's everyday experiences. Looking at the children's social networks and future aspirations, the discussion will draw out ways in which social capital processes interact with other aspects of children's identity, including ethnicity and gender, from a child‐centred perspective. Finally, some exploratory ideas are offered as to how bonding processes may affect children's psychological well‐being, and how they may be viewed through the concept of ‘emotional capital’.