Max Staff
Poe-Johnson
Sociology
10/28/24
Benjamin Franklin once said, “An investment in knowledge pays the best interest.” This
is correct because of the many positives that education brings. Firstly, higher education can
greatly impact the wages a person receives. Unity.edu says, “On average, a person with a
bachelor’s degree will make $765,000 more in their lifetime than someone with no degree”
(Unity 6). Also, people who receive a quality education hold countless important qualities like
cognitive development, emotional intelligence, and environmental awareness. Lastly, the more a
person knows, the better off they will be in their life. It is clear that education carries many
benefits, but there are socioeconomic factors that can determine the quality of education a person
receives. So what are these factors? Socioeconomic factors affect education through the amount
a school receives in government funding and the income level of a student’s family. These
elements come together to create impactful results in the education system.
To start, it's important to understand how schools get their funding. K-12 education gets
its funding from three levels of government: local, state, and federal. Although federal money is
a crucial part of a school’s funding, local and state governments put the most money towards
their schools. According to Pgpf.org, “State and local governments provide the vast majority of
funding for K-12 education — 86 percent of all school funding” (Peterson 2). Local and state
governments both handle an equal share of that 86 percent, but they do so differently. Beginning
with local, they raise money through the property taxes of their area. Usually, the school districts
would take the money from property taxes, state government, and federal government and put it
towards each school. Also, the school districts would allocate teachers, administrators,
equipment, and funding to the school based on the number of students in a school, but there is
another method that has arisen in some school districts. Pgpf.org states, “In recent years, a
number of school districts have moved away from that process and have begun to develop
budgets for individual schools that apply the concept of weighted student funding formulas to
assign resources based on student need. Proponents of student-based allocation argue that it
would improve transparency by reflecting actual expenditures per school and promote equity by
linking resources to specific needs” (Peterson 11). It is important to note that this approach is
extremely new and its effects are not yet studied to completion. State funding can be limited as
they have to account for all the schools in their state. State funding is distributed through a
formula that accounts each area’s needs and locally raised funding. Because of this, state funding
will allocate more money to those districts that have financial needs like low-income families.
Finally, federal funding gives their money to schools through grant programs. This is especially
effective in low-income communities where these grants make a noticeable difference.
Continuing, federal funding has seen an extreme boost in recent years. Pgpf.org says, “Federal
funds made up $119 billion or roughly 14 percent of total education funding during the 2022
fiscal year. That amount has doubled from pre-pandemic levels ($58 billion in 2019) partially
due to legislation enacted in response to the COVID-19 pandemic, which provided emergency
relief funding to address the impact that COVID-19 had on elementary and secondary schools”
(Peterson 4). All in all, the three sections of funding are heavily influenced by the socioeconomic
class of a community. Areas of the country suffering from poverty will find it hard to get enough
funding to support their education.
Socioeconomic factors also affect a student’s ability to have a strong education through
the income level of their family. When students struggle with poverty, it can be tough for them to
have the tools they need to succeed like other, well-equipped students. This causes an
achievement gap where a group of students perform significantly worse than another group of
students. Ballardbrief.byu states, “Research has confirmed that lower-income students perform
worse in school as measured by academic tests—roughly 1 standard deviation lower, or about 3
academic years behind.9 Low SES students enter high school with average literacy skills 5 years
behind their high SES counterparts.10 low SES students are behind in reading and math
proficiency by 20–26 percentage points compared to high SES students.11 The success rate of
low SES students in STEM fields is significantly lower than high SES students.12 Lower SES
students are also disciplined and suspended more frequently and attend class less.13 The
socioeconomic achievement gap has been correlated with increased dropout rates (7.2% low SES
students compared to 3.6% mid and 3.9% high SES students), lower likelihood of college
graduation (14% compared to 60%), and a higher likelihood of incarceration” (Holmes 8.)
Although there is a lot of data, it can be boiled down to this. If kids do not have an average to
high SES or socioeconomic status, their education will suffer.
Ultimately, socioeconomic factors greatly influence education through the funding a
school receives, and the socioeconomic status of a student’s family. Importantly, the
socioeconomic status of a community will affect how much funding their schools receive.
Additionally, students will struggle to build momentum in their education without the financial
support of their families. In places where the socioeconomic class of a community is high,
students will have more than enough support to complete their education. On the other hand,
places with a low socioeconomic class will find it hard to help their students succeed. Luckily, it
seems all three levels of government are proactive in trying to move around their funding to
make education as accessible as ever.
Works Cited Page
Burke, Cassie. “Why Is Education Important? The Power of an Educated Society.” Unity
Environmental University, 29 May 2024, unity.edu/articles/why-education-is-important/.
“How Is K-12 Education Funded?” Peter G. Peterson Foundation, 19 Aug. 2024,
www.pgpf.org/budget-basics/how-is-k-12-education-funded.
Bradley, Kate. “The Socioeconomic Achievement Gap in the US Public Schools.” Ballard
Brief, Ballard Brief, 11 Sept. 2024,
ballardbrief.byu.edu/issue-briefs/the-socioeconomic-achievement-gap-in-the-us-public-sch
ools.
