New UMD Study Reveals $502K Investment Per Child in the U.S., With Biggest Gaps in Early Childhood

COLLEGE PARK, Md.— A new University of Maryland study, published today in Nature Communications, estimates that the average U.S. child receives an investment of about $502,000 from birth to age 18—with gaps by race, ethnicity and income that are largest before kids enter kindergarten.

While universal K-12 public education helps even out the dollar amounts spent across groups, the researchers discovered that new disparities emerge after age 5. For example, lower-income, Black and Hispanic children were more likely than high-income and white children to receive school-based tutoring and special education services. These services are often meant to remediate lagging academic progress, a likely result of lower investments before age 5.

“Early childhood is a time at which we’ve underinvested in kids, and it’s a time when investments in kids really matter for long-run outcomes,” said David Blazar, lead author and associate professor of education policy and economics at UMD.

The study examined public, private and family time investments in 10 areas: child care, clothing, formal education, informal educational experiences, college preparation, health care, nutrition, exercise, housing and transportation. Within these 10 areas, the team examined disparities in 77 highly specific investments, such as whole fruit vs. fruit juice, or preventative health services vs. emergency room care.

The team found relatively modest investment gaps overall by race, ethnicity and income (6-15%), but these disparities were much larger in early childhood, with gaps of upwards of 60% in housing and child care. They also found that families of all backgrounds spent large amounts of time with their kids, which helped to fill in gaps in investments from other sources.

“The findings provide valuable information that can help policymakers direct resources in ways that lead to more equitable life opportunities, benefitting both individuals and society,” said Jennifer King Rice, senior vice president and provost, professor of education policy and Distinguished Scholar-Teacher, who collaborated with Blazar on the study along with UMD faculty members Michel Boudreaux, Steven Klees and Marvin Titus, and Ph.D. candidate Jiehui Zhao.