Considering the price of education, we examine the dynamic relationship between education, fertility, and income distribution. We show that, although the number of children decreases with an increase in income, the ratio of total educational expenditure to income increases. We also show that, even if the education level of the poor increases and their number of children decreases, income inequality may start to rise. The demand for education by the rich makes the price of education too high for the poor. We also examine related policies. The child-benefit increases the possibility of inequality widening. Moreover, it decreases GDP per capita.