Family Income Shapes Investment in Children in the US
Investments made during childhood can affect a person’s future, but less is known about how those investments differ across groups. A study published in Nature Communications examined how the money and time devoted to children in the United States vary by family income and race.
The researchers combined data from 10 national surveys conducted between 2010 and 2023. They calculated the value of public spending, family spending and the time families spend with their children in dollar terms, comparing investments across 10 areas, including education, healthcare, food, housing and childcare. The largest disparities appeared before children began formal schooling.
On average, a child in the US receives an estimated $502,152 in investment from birth to age 18. Children in the highest-income quarter receive about $86,000 more than those in the lowest-income quarter. The gap between children in White families and those in Black and Hispanic families ranges from $55,000 to $75,000.
The study found that publicly funded schooling narrows these disparities. The investment gap between the highest and lowest socioeconomic groups is 24% from birth to age five, falling to 12% after children enter the K–12 school system. The researchers attribute the reduction to publicly funded teacher salaries and additional support for children in lower-investment groups.