Dive Brief:
- The U.S. invests over $500,000 per child on average between birth and age 18, but total investments over the course of childhood are roughly $86,000 more for children from higher household incomes — and up to $75,000 more for White children compared to Black and Hispanic children, according to an analysis of 10 nationally representative studies.
- Overall gaps in investment by income and race are between 6% to 15%, but they exceed 50% before kindergarten, driven largely by differences in housing and child care. White children and those from higher-income households receive substantially more investment from birth to age 5, compared to their counterparts.
- Gaps in investments in children converge at age 5, largely driven by public schools. But leveling investments during middle and later childhood also mean increased compensatory investment is needed for groups subject to under-investment during early childhood, such as in tutoring and special education for low-income, Black and Hispanic children.
Dive Insight:
The study, published in the journal Nature Communications, reviewed 10 nationally representative surveys between 2010 and 2023 to track public, private and family investments in children.
The University of Maryland researchers found that by the time students enter K-12, disparities already exist — especially in domains like housing and child care.
"These differences are largely explained by white and higher-income families investing more in child care from someone other than a relative, as well as housing, where large gaps start at birth and continue throughout childhood," the study said. "These patterns are concerning, as early childhood is a critical period in which investments have large returns."
A 2016 paper found that high-quality birth-to-5 programs for disadvantaged children can deliver a 13% per year return on investment. The findings also suggested these programs lead to better outcomes in education, health, social behaviors and employment, according to researchers from the University of Chicago and University of Southern California.
Studies on Early Head Start and Head Start, federally funded and free early childhood education programs for children ages birth to 5 have been found to have positive academic, social and economic returns.
These programs were anticipated to be pared back under President Donald Trump's administration, but his fiscal year 2027 budget proposal maintained current funding levels for Head Start.
However, Yasmina Vinci, executive director of the National Head Start Association, which represents Head Start employees and families, said in a statement last week that the funding level is still not enough.
“While the president’s proposal of level funding is a clear indicator of the tremendous value of Head Start, it falls well short of the resources needed to keep up with rising costs," she said. "Head Start is struggling under high energy, food, and operational costs, deteriorating facilities, and challenges in recruiting and retaining qualified staff."
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