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Our research explores the impact of class sizes on the connection between public education expenditure and household education investments. Using data from China's Family Tracking Survey and Education Tracking Survey, we find that expanding class sizes significantly increases household shadow education investment, particularly evident in classes with over 50 students. Our conclusions emphasize "large class sizes" intensify student competition through peer pressure. The article proposes that augmenting public education investment is a prudent approach to alleviate the educational burden on families. This entails reducing class sizes even more and simultaneously bolstering the supply of qualified and skilled teachers. Such measures would result in a reasonable reduction of the burden on families and contribute to creating a more equitable educational environment.