Investing in Early Childhood Gives One of the Best ROI
Comprehensive quality care pays off.
While the costs of comprehensive early childhood education are high, the rate of return of programs like ABC/CARE implies that these costs are good investments. Every dollar spent on high-quality, birth-to-five programs for disadvantaged children delivers a 13% per annum return on investment. These economically significant returns account for the welfare costs of taxation to finance the program and survive a battery of sensitivity analyses. The cost of high quality early care was $18,514 in 2014 U.S. dollars. The average cost of childcare alone in the United States ranges from $9,589 to a high of $23,354 with few assurances of the quality necessary to generate quality life outcomes for children.
The gains are significant because quality programs pay for themselves many times over. The cost of inaction is a tragic loss of human and economic potential that we cannot afford.