Investments in high-quality early childhood education yield a 7-10 percent per year return on investment based on increased school and career achievement as well as reduced social costs. At the same time, parents who complete a college degree double their incomes. A parent’s level of educational attainment is also a strong predictor of a child’s success.
Physical, mental, and emotional health have a major impact on a family’s ability to thrive. Childhood trauma, for instance, has lasting health and social consequences. Research also shows that parents with health insurance are more likely to seek regular care for themselves and their children.
Social capital is the formal and informal networks - of family, friends, neighbors, and institutions - through which people develop meaningful connections to build economic security. These networks and the skills to build them are important contributors to families’ well-being.
Increased family income during early childhood can have a profound and lasting impact on children’s lives. A $3,000 difference in parents’ income when their child is young is associated with a 17 percent increase in the child’s future earnings. Savings and other financial assets are also critical to help manage unexpected setbacks.