Is College Worth It?

With the cost of college skyrocketing, the discussion regarding the worth of college has become a hot topic for parents of high school students. Here are some important facts about college that can help you make the right decision for your family based on your teen’s career goals.

Take note, we purposefully stuck to facts when writing this piece so you can form your own opinions on the worth of a college education!

Make sure you read both sections, Why College Is Worth It and When College Is Not Worth It.

Why College Is Worth It

1.      College Graduates Earn More

Bachelor’s degree graduates earn 40% - 62% more on average than high school graduates. I have found a lot of variations on this from numerous sources, but they all agree that college graduates make higher wages.

2.      Lifetime Earnings Are Higher For College Graduates

Comparing the earnings of a college graduate to a high school graduate, the return on investment typically happens around age 31. At that point, the college graduate’s lifetime earnings will typically outpace that of a high school graduate. The college education investment is taken into consideration in this calculation.*

3.      88% of millionaires are college graduates.

What we know is the average millionaire is 57 years old. However, it is unclear if younger people today are outpacing this statistic and becoming millionaires at a younger age with or without college. This statistic still tips its hat to college being worth the investment. #

4.      Networking – we all know in business and life, ‘It’s who you know’.

College is a place where personal networks can be made. When applying for work, trying to get that next step up in a company or just being in the room with people that matter, networking matters. College connections are powerful.

When College Is Not Worth It

Sometimes, a college degree does not make sense, or the options should be heavily scrutinized. Here are a few you need to consider.

1.      When the return on investment does not work.

For instance, if your teen wants to be a teacher, an occupation with limited earning potential and upward mobility, sending them to a private college will not produce a great ROI.

This is where it is critical to consider a career path before attending college so your family can weigh out the facts.

If it is important to you that your teen attends a private school, that becomes a family decision, but it will be more difficult to make the ROI work.

2.    As they say, the worst college degree is the one you don’t finish.

There are two areas you need to consider here:

a.      If your teen expresses, that they do not want to go to college, take it to heart!

b.      Or, if they are unclear on why they are going to college, this can also make finishing their degree tougher than a student who is clear on their direction.

In both instances, you will need to have conversations about the type of career your teen is interested in. Because when your teen has a clear goal, they can make better decisions on how to make that goal a reality. Whether it includes college or another education path, this decision will ground them in what action needs to be taken next. They can also better navigate their first year of college, even when it gets uncomfortable.

3.     When college is not a requirement to get into the field of work they are interested in pursuing.

If your teen is interested in being a cosmetologist, plumber, realtor, radiologist, etc. you can now decide if they should attend college or go directly into getting their license or other certifications. This (again) is a family decision, but now you can base this decision on facts.

This is an interesting, daunting, and emotional time for you and your teen! Talking about the worth of college and what outcome your teen wants to accomplish before making a college or no college decision will be key.

So, what do you think? Is college the next best step for your high school student?

Resources:

*US Census Bureau - https://collegeaffordability.urban.org/breaking-even/

#There were multiple resources with the same facts, but this article was the most comprehensive. https://www.zippia.com/advice/millionaire-statistics/

#College #Career #CostOfCollege #Lifetime

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