Hilary was born on October 26, 1947, at Edgewater Medical Center in Chicago, Illinois. She was raised in a United Methodist family, formerly residing in Chicago. When she was three years old, her family moved to Chicago, a suburb of Park Ridge. Her father, Hugh Rodham, was of English and Welsh descent and owned a small but successful textile business, which he founded. Her mother, Dorothy Howell, was a Dutch, English, French Canadian (from Quebec), a housewife of Scottish and Welsh descent. Clinton has two younger brothers, Hugh and Tony.

As a child, Rodham was a favourite student among the public schools attending Park Ridge among her teachers. She participated in swimming and softball and earned several badges as a Brownie and a Girl Scout. She often told the story about being inspired by America's efforts during the space race and sent a letter to NASA around 1961 asking what she could do to become an astronaut, only to be told that women were not accepted into the program being done. She attended Main East High School, where she attended the Student Council and the school newspaper and was elected to the National Honor Society.

She was elected Class Vice President for her junior year but then lost the election to Class President for her senior year against two boys, one of whom told her "You're really stupid if you think that a girl can be elected as President ". For her senior year, she and other students were transferred to the then-new Maine South High School. There she was a National Merit Finalist and was voted "most likely to succeed". She graduated in the top 5% of her class in 1965.

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