The feasibility of the problem of the study was ensured by the data received from empirical studies motivating children`s attainment. The theory of human capital was also employed in the process of data assessment. Cragg`s double-hurdled model was utilized to assess the results of the interviews of 331 families investing their money in children`s education conducted by Consumer Expenditure Survey in 1996In the given article, substantial amount of literature has been reviewed concerning the given topic. Firstly, the authors analyzed the literature, which dealt with the study in an indirect way.
Previous researches concentrated on time allocated to children by their parents, college investments, and expenditures in the total sense including miscellaneous costs. Most of the researchers are determined to investigate the money spent on child rearing totally. Olson (1983), who calculated that 13% of the total sum constitute education expenditures, provided import information regarding education expenditure. Lazear and Michael (1988) defined direct interdependence between general family income and education expenditure, subsequently, the costs rose proportionally to the quantity of children in the family. Lino (1995) managed to assess the proportion of the budget spent on such necessities as housing, food, clothes, transportation, healthcare in the double-parent families with more than one child and concluded that the larger part of the expenditure on little children is connected with housing while the smallest with health care for middle and high-income families.
For the low-income families, education and childcare were on the last places among budgetary expenses. The expenses for education constituted 6% and 8% respectively for the low income and high-income families. Thus, the research, which would concentrate mainly on primary and secondary education expenditure was not conducted, and there is evident lack of literature on this topic. The human capital theory was utilized in this study in an attempt to define the decisive factors for parents` investment in primary and secondary education.
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