Philosophy and Money

Philosophically, I agree with you…

Many frustrating conversations grind to an end with that phrase. The speaker expresses sympathy with whatever forward-thinking humanitarian scheme you have in mind. But — there’s always a but — he or she says it can’t be done because it costs too much. It’s irresponsible to spend money we don’t have.

Well, I’ve got an answer for that one, Dear Reader. Feel free to use it next time you find yourself in a frustrating conversation: Do you plan on sending your kids to college?

Ask him if he has the cash on hand to pay for college tuition. Unless you’re talking to a viscount, the answer is probably “no.” Middle class families manage college through a combination of borrowing, cutting back on expenses and maybe a bit of moonlighting. College is out of reach only in truly poor families, who have no credit and nothing to cut back on, and where parents are often unable to find work. Most of us stretch to pay for college because it’s worth it. Even after factoring in the costs of getting an education, a college graduate can expect more than half a million dollars in lifetime earnings over what someone without a degree will make.

That is just one example of how we go to the wall financially for our kids. Many families with young children decide it’s best for one parent to stay home or work part-time, even though it’s a financial hardship. As our incomes go down, we spend heavily on our kids. It’s amazing how much equipment such a little person needs, from playpens to swings to the weekly boxes of diapers that inflate the grocery bill. As our kids grow, we keep finding money for piano lessons, soccer uniforms, braces, and on and on. These are not luxuries. They’re things that keep our kids safe and healthy or that give them the chance to socialize with other children and develop their talents. These expenditures put them on the road to a comfortable and fulfilling life, and so we parents find a way.

We need to think as a society in the way we think as a family. We need to invest in our children’s future. There are literally thousands of investments we could make as a society with similar payoff. Here are just a couple to illustrate:

The Nurse Family Partnership sends registered nurses into the homes of first-time, low-income mothers during their pregnancies and through their child’s second year. These kids are healthier than their peers, do better in school and are less likely to be arrested as adults. A Rand study found that the program produces $5.70 in benefits for every dollar spent.

A large study in North Carolina found that low-income kids who received high quality early childhood education: scored higher on cognitive tests, were more likely to attend a four-year college, and were older than their peers when their first child was born. The mothers of these children also had higher educational and career achievements than women in similar circumstances.

If we truly “philosophically” believe such things are important, then we will find a way to pay for them. For example, some states and municipalities are turning to social impact bonds, where the cost of a program to taxpayers is directly linked to whether it achieves its goals. Another interesting innovation matches alumni lenders with student borrowers to offer student loans at below market rates. Why not a similar arrangement to finance human services programs?

I’m not promoting any specific financing strategy to advance social good. I’m just pointing out that these strategies exist and that creative folks are coming up with new ones all the time. My point is that when we look at our failure to adequately support poor children, money is not a reason. It is an excuse.

 


This article was first published in 
The Huffington Post, on January 16, 2013

Start Early to Close the Achievement Gap

By age 3, children in low-income families have smaller vocabularies than middle-class kids of the same age. This “achievement gap” persists throughout school and culminates in lower graduation rates for children growing up in poverty. I’m not offering a magic bullet to close the achievement gap. Complex problems, unfortunately, tend to require complex solutions. But I can think of two key elements to any effort to address the gap: We need to start early and we need to think broadly.

Remember, we’re seeing language deficits by age 3. We also know that those first three years are spent forming trillions of synapses — 90 percent of the brain development we’ll experience in our lifetimes. So the question is: Can a baby living in poverty have the rich experiences that encourage healthy development? We know that great early childhood education helps. Kids who participate in early childhood education are more likely to graduate high school and 2.5 times more likely go on to higher education.

People in my line of work are fond of referring to social programs as “investments.” It’s hard to think of any area were the term is more apt than early childhood. Kids in good early childhood programs achieve higher, contribute more in taxes and require less in public services. One study found that the return on investment in early childhood education is $17 for every $1 spent.

As I said, we need to think broadly and deliver services to poor families where and how they need them. For example, my community reserved some spots in high quality early childhood programs for low-income families, but we found the families that needed them most didn’t know about the program. So we used non-traditional marketing, like lawn signs, to get the word out.

Once families knew about the slots, there were still needs to be met. Most child care programs require parents to supply disposable diapers for their children. The neediest families simply couldn’t afford them. It took an entire non-profit organization to address that.

Hats off to the community in Lafayette, La., that is crafting a broad-based strategy to close the achievement gap, including:

… the creation of health and wellness teams (to) help address issues as they happen, rather than just letting students move through the school system without any intervention.

I believe Lafayette is able to be smart about boosting achievement, because it isn’t getting stuck in the “blame the victim” trap that so often accompanies discussions about poverty. In an interview with The Advertiser, United Way of Acadiana Executive Director Margaret Trahan said: “The stereotype that poor parents don’t care, I know, is a myth.” The Advertiser reports, “She said many parents in poverty struggle with multiple jobs, odd shifts, problems getting adequate childcare and a lack of reliable transportation.”

Every family faces challenges. In poor communities, those challenges form a long and daunting list. If we want kids of all income levels to succeed, we need to find ways to scratch things off that list.

Follow Joanne Goldblum on Twitter: www.twitter.com/jgoldblum

 

This article was first published in The Huffington Post on November 27, 2012.

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