Sport is recognized as one of the integral parts of an individual's life. Engaging in sports activities is considered extremely useful and effective for all ages, especially children and young people. It is unquestionable that physical components are developed through playing sports, but the contribution which is reflected in a series of benefits of a psychological and social nature that contribute to the harmonious development of children and young people is not negligible. Accordingly, it is easy to conclude that children and young people develop in a number of ways by participating in sport. The development of children and young people through sports activities can be monitored in terms of encouraging independence, increasing responsibility, developing social competences and skills, adopting healthy habits and discipline. Furthermore, sport is extremely useful in the formation of personality, practicing teamwork, learning tolerance and building self-esteem and self-confidence. Due to all the positive influences mentioned above, it is desirable, almost necessary, to encourage sports activities from early childhood. The fundamental role in encouraging children and young people to participate in sports activities is played by parents, and later, if they decide to actively participate in sports, by coaches. The fundamental goal of this paper is to show all the significance, that is, the influence that sport has on the development of children and young people.