Barbara Anderson spent most of her childhood in Lightning Ridge in north-west New South Wales. Anderson was born with a small hole in her neck. When she was eight, she travelled to Sydney from Lightning Ridge to have an operation to close the hole. When Anderson was about ten years old, her family moved to Coonamble, and when she was thirteen, her father applied for a Certificate of Exemption to prevent his children from being taken away by the Australian Government. By the time she was fifteen she moved out of home to find work in Wellington and then on to Sydney a year later where she married and had her first child at seventeen. The marriage ended after Anderson's third child was born in 1964. Anderson supported her children by working as a waitress when she met her second husband Barry, who was enlisted in the Australian Navy. They lived together in Sydney and then in Melbourne, settling in Frankston, where Anderson's fourth child was born. Anderson worked in a variety of positions as waitress, barmaid and grocery delivery person before her husband urged her to get an education, and at the age of 44, Anderson enrolled at the Dandenong college of T.A.F.E.
In 1984, Anderson commenced work as a trainee in the office of Member of Parliament, Mrs Jane Hill M.L.A. At night, she studied Secretarial Business studies and typing. At the end of 1984, Anderson passed her public service test and immediately gained full time employment with the government in Frankston. She worked for a few years then took time off due to a nervous breakdown. It took Anderson some time to regain her strength and confidence after her illness, but during that time her family supported her.
Anderson had a strong involvement with organisations that helped people. She worked on the Underprivileged Committee, did voluntary work at Worawa, and was on the Dandenong Aboriginal Community Justice Panel. In 1991, Jane Hill invited Anderson to join the International Women's Friendship club, aimed at creating community amongst female migrants, where she talked about her heritage. This led to other opportunities for Anderson to speak about Aboriginal culture, including being involved in the 1992 Australia Day celebrations in Victoria for which Anderson was asked to represent Indigenous Australians at the unveiling of the plaque at Kananook Creek.
