Investing in human capital requires, among others, access and capacity to process information. This paper focuses on understanding the role of expected returns to education in determining schooling decisions. Using data for youths in seven countries in Latin America and the Caribbean, we find that expected returns to education are associated with schooling choices, particularly for tertiary education. However, expectations differ across individuals and in specific domains that public policies can address to reduce intra- and inter-generational transmission of poverty and inequality.