Cost Benefit College Planning
A recent radio program asked the question: Is college worth it?
There is a high correlation between a college degree and financial success. But what I learned (in college?) is that a high correlation is not the same as causation.
It might be that people inclined to work hard and learn a lot in college are inclined to work hard and learn a lot in life -- and that's why they "get ahead" in the workplace, for example.
That said, some professions still use a degree (and even the university from which it was acquired) as a gate-keeping device. I'm glad that hospitals do that for doctors. I'm less impressed when software companies do that for programmers.
Don't get me wrong. I get tired of people that say "Steve Jobs and Bill Gates didn't have college degrees, and they did alright," but it's almost as tiresome as people that consider a degree a qualification for a profession.
But the question is narrow: Is a college degree required for financial success? No. Is it associated with an overall higher level of financial success? Yes. Does the mere act of getting a degree ensure one of financial success (or vice versa)? No.
So it really depends on an equation that takes into account the cost of the degree, the expected return on that investment -- which requires looking at particular degrees and particular fields of work, and the likelihood of the student making constructive use of the experience/time/money investment. Now that the costs are spiraling and the returns are less precise than in previous generations (where a degree was arguably weighed more than competence), the equation is no longer a no brainer "of course you gotta go to college".
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On to assumptions:
You do realize that are more reasons for going to college than getting ahead financially, afterwards? It can be a life enriching experience, which creates a more well rounded person, and be a place to foster life long passions and relationships. Whether it's worth the cost is a question of whether one would have done something even more impactful with the money.
And you do realize that parents don't have to pay for college? There is a lot to be said for doing it slower than in the past, and working at the same time, to offset the cost. This also allows room for a student to see if it fits with their life or career goals, something one often doesn't know at 19, anyway, which throws the whole cost-benefit analysis into a big gray area.
There is a high correlation between a college degree and financial success. But what I learned (in college?) is that a high correlation is not the same as causation.
It might be that people inclined to work hard and learn a lot in college are inclined to work hard and learn a lot in life -- and that's why they "get ahead" in the workplace, for example.
That said, some professions still use a degree (and even the university from which it was acquired) as a gate-keeping device. I'm glad that hospitals do that for doctors. I'm less impressed when software companies do that for programmers.
Don't get me wrong. I get tired of people that say "Steve Jobs and Bill Gates didn't have college degrees, and they did alright," but it's almost as tiresome as people that consider a degree a qualification for a profession.
But the question is narrow: Is a college degree required for financial success? No. Is it associated with an overall higher level of financial success? Yes. Does the mere act of getting a degree ensure one of financial success (or vice versa)? No.
So it really depends on an equation that takes into account the cost of the degree, the expected return on that investment -- which requires looking at particular degrees and particular fields of work, and the likelihood of the student making constructive use of the experience/time/money investment. Now that the costs are spiraling and the returns are less precise than in previous generations (where a degree was arguably weighed more than competence), the equation is no longer a no brainer "of course you gotta go to college".
----
On to assumptions:
You do realize that are more reasons for going to college than getting ahead financially, afterwards? It can be a life enriching experience, which creates a more well rounded person, and be a place to foster life long passions and relationships. Whether it's worth the cost is a question of whether one would have done something even more impactful with the money.
And you do realize that parents don't have to pay for college? There is a lot to be said for doing it slower than in the past, and working at the same time, to offset the cost. This also allows room for a student to see if it fits with their life or career goals, something one often doesn't know at 19, anyway, which throws the whole cost-benefit analysis into a big gray area.