Family wealth may explain differences in test scores in school-age children

The researchers suggest that the stronger impact of wealth on school-aged children may be because school-aged children benefit more from family wealth that is spent on educational resources that require substantial financial investment, such as private schools, extracurricular activities, and cultural experiences. Furthermore, older children may be more conscious of differences in wealth relative to their peers as they are exhibited in the quality of the learning environment, possessions, and the type of neighborhood where children live. These differences may influence their self-esteem and aspirations, which in turn are positively associated with their school performance.

“While wealth may help smooth consumption on a more short-term basis, the presence of wealth over time in a family (or extended family) may have a stronger impact of engendering a sense of economic security, future orientation, and the ability to take risks among all family members which, in turn, positively affect child development,” according to W. Jean Yeung, professor of sociology at New York University and the lead author of the study.

Despite the marked disparity in wealth between Black and White families, the study found little evidence that wealth by itself explains the test score gaps between Black and White children. Those gaps were found to become less meaningful when child and family demographic characteristics and parents’ income, education, and occupation were held constant. “Although wealth may not have a substantial short-term benefit in narrowing the Black-White achievement gap among young children, allowing and encouraging low-income families to accumulate wealth may improve family dynamics and foster a forward-looking attitude that may benefit children’s development in the long run,” said Yeung. “The financial effects of wealth would likely be observed later in life when school financing becomes an issue.”

The study was funded by the Eunice Kennedy Shriver National Institute of Child Health and Human Development.

Summarized from Child Development, Vol. 79, Issue 2, Black-White Achievement Gap and Family Wealth by Yeung, WJ, and Conley, D (New York University). Copyright 2008 The Society for Research in Child Development, Inc. All rights reserved.