The average cost of raising a child from birth through age 18 is about $250,000 (excluding the cost of birth, college, and lost wages in between) or $13,900 per year. That Department of Agriculture estimate includes an extra bedroom and some transportation cost which, for some families, may not be a marginal cost. But it is still breathtakingly high–about a quarter of annual median income of $54,000.
While more than 90% of parents take advantage of free public education, they and other citizens pay for it through income and property tax (and, for college, lots of student loan debt). The grand total of $32,600 to raise a kid raises questions about economic sustainability. The disproportionality that falls on low income families raises questions about equity.
Showing 184 posts tagged economics
This August, Americans will spend an estimated on back-to-school shopping, according to the U.S. Department of Commerce. A lot of that spending is driven by the lists that schools and teachers give out, detailing what students need to bring on that first day.
To get a handle on what’s on those lists and in those backpacks — and how much it costs to fill them — we pulled a sample of schools around the country, one from each of the U.S. Census Bureau’s nine geographic regions. Then, we examined each school’s lists for grades one, three and five.
For those who choose teaching as a career, it isn’t typically for the high paycheck. But, there are some things that can have a positive or negative influence on a teacher’s pay. And some of them may surprise you!
College tuition and student debt levels have been increasing at a fast pace for at least two decades. These well-documented trends, coupled with an economy weakened by a major recession, have raised serious questions about whether the market for student debt is headed for a crisis, with many borrowers unable to repay their loans and taxpayers being forced to foot the bill.
There’s a simple reason young adults are living at home in higher numbers: For many, moving out means living in poverty.
The numbers are jarring. According to the Pew Research Center, a whopping 56% of 18-24 year olds lived at home in 2012, the highest rate since the 1970s. Today’s young adults are taking longer to reach life milestones like taking out a mortgage or getting married. The New Republic has dubbed this trend the Great Delay.
A new report says many schools are struggling with funding.
Big increases leave librarians at liberal-arts institutions feeling ambushed.
The rise in U.S. college tuition is unsustainable. That’s the argument of a new television documentary, “Ivory Tower,” which tackles growing worries and critique over college costs and student debt. Jeffrey Brown talks to filmmaker Andrew Rossi about the origins of rising costs and financial competition among institutions, plus ideas about how to turn around the trend.
When a family spends more than half of its income on a home, their children’s reading and math abilities tend to suffer, according to a new study by Johns Hopkins University. This is also the case when they spend too little — less than 20 percent of their income.
image via flickr:CC | JSmith Photo
Once the recession ended, however, so did the stimulus — long before state and local governments were ready to pick up the slack. Federal per-student spending fell more than 20 percent from 2010 to 2012, and it has continued to fall. State and local funding per student were essentially flat in 2012, the most recent year for which data is available.
The result: Total school funding fell in 2012 for the first time since 1977, the Census Bureau reported last month. Adjusting for inflation and growth in student enrollment, spending fell every year from 2010 to 2012, even as costs for health care, pension plans and special education programs continued to rise faster than inflation.1 Urban districts have been particularly hard-hit by the cuts in federal education spending: Nearly 90 percent of big-city school districts spent less per student in 2012 than when the recession ended in 2009.2
The average person graduating from college in 2013 borrowed nearly $30,000 in student debt. To help Americans overburdened by their loans, President Obama signed a new executive order that expands on a 2010 law that capped federal loan repayments at 10 percent of borrowers’ monthly income.
BOLDING FOR EMPHASIS: “If the costs keep going up, what’s the point in just forgiving loans?”
In districts that substantially increased their spending as the result of court-ordered changes in school finance, low-income children were significantly more likely to graduate from high school, earn livable wages, and avoid poverty in adulthood.
So concludes a working paper published this month by the National Bureau of Economic Research, or NBER, a private, nonpartisan research organization with headquarters in Cambridge, Mass.
image via flickr:CC | SalFalko
A new set of income statistics answers those questions quite clearly: Yes, college is worth it, and it’s not even close. For all the struggles that many young college graduates face, a four-year degree has probably never been more valuable.
The pay gap between college graduates and everyone else reached a record high last year, according to the new data, which is based on an analysis of Labor Department statistics by the Economic Policy Institute in Washington. Americans with four-year college degrees made 98 percent more an hour on average in 2013 than people without a degree. That’s up from 89 percent five years earlier, 85 percent a decade earlier and 64 percent in the early 1980s.
More than 16 million people in the US — about 8 percent of the population — now have a master’s, a 43 percent increase since 2002.
But the growth hasn’t been spread around evenly. The story of the past four decades isn’t just about how master’s degrees became as common now as bachelor’s degrees were in the 1960s. It’s about how the US has redefined which fields need or reward postgraduate study.
A team of researchers led by Michael T. French, professor of health economics at the University of Miami (UM), finds that high school grade point average (GPA) is a strong predictor of future earnings.
The findings, published recently in the Eastern Economic Journal, show that a one-point increase in high school GPA raises annual earnings in adulthood by around 12 percent for men and 14 percent for women.