The last quarter century of research on brain development suggests that the nurturing and learning experiences available in the first few years play a strong role in shaping a child's development. Babies are born with a remarkable intrinsic ability to learn. The foundation for a child's intellect, personality and skills is established in the first five years. Today, a vast majority of Wisconsin's children under the age of six have all parents in the workforce, and early care and education have become a routine part of many children's young lives. A growing body of scientific evidence indicates that investing in the education of youngest learners may be one of the most promising ways to prepare children for school and strengthen the future economic position of states and the nation. A series of longitudinal studies have established that high quality early education is a cost-effective investment, yielding the highest returns when children from disadvantaged backgrounds are targeted. The largest expense in any early care and education program, and the one that research has shown has the most significant impact, is human resources: the adults who guide and teach young children. This paper is the second in a series of Quality Matters policy briefs that explore the elements of high quality early care and education. It examines educational qualifications of teachers as a component of quality, and explores the benefits gained from well-educated early childhood teachers. (Contains 2 tables and 23 endnotes.)