Emily RobertsHow would you like to invest $22,000 and have it turn into $2 million? Thousands of people do, but how? The answer is simple: college education. Their investment strategy involves a four year commitment to education. The reward begins with earning a college degree, which opens the door to a lifetime of earnings that otherwise would not have been possible. In this article, we’ll show you the million dollar advantages of choosing education.
In a Nutshell
- Earnings for people with college degrees are almost double those of people with only a high school education.
- A bachelor’s degree earns a worker $1,248 a week, or $64,896 on average.
- A college degree is expensive and is only getting more so.
- Investing in yourself and a college degree is a long term investment that pays off in the form of increased earning potential, employment security, and a better quality of life.
- A college education offers greater prospects for progression and upward social mobility.
Mathematics is Simple
If you want to know if a college education is worthwhile, just take a look at some of the data released by the U.S. government. According to the Bureau of Labor Statistics (BLS), people with a college degree earn almost twice as much as those with a high school diploma. High school graduates can earn as much as $746 a week or $38,792 a year.
The aim of a college education is to teach you to know a good man when you see one.
William James
The median salary for someone with a bachelor’s degree is $1,248 a week, or $64,896 a year. If we do not account for inflation and salary increases, a 40 year career would be approximately $1.5 million for a high school graduate and $2.6 million for a college graduate. Of course, these figures increase with each degree earned.
See how Salaries Increase by Grade
While almost any degree will improve your income prospects, more education usually means more money. Over the course of everyone’s career, an associate’s degree is worth approximately $1.8 million, a bachelor’s degree is worth $2.6 million, a master’s degree is worth $3.1 million, a doctorate is worth $3.9 million, and a professional degree is worth $4 million.
Of course, like any investment, some options for investing in yourself are better than others. A degree in basket weaving, Renaissance art, or golf is likely to generate a much lower income than a degree in computer science, business, or health sciences. Making the right career choice is a lot like choosing the right investment for your long term portfolio. In other words, you need to choose something that fits your goals and has a realistic chance of giving you the return you expect.
Know the True Cost of College Education
Getting a degree is easier said than done. The cost of a college education is high and rising. In fact, education costs have risen faster than inflation over the past decade. The College Board, a non profit higher education association, says that the cost of a four year public college is about $10,740 per year. Tuition at a private school costs even more: about $38,070 a year.
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Costs increase if you decide to live away from home. How much you pay in addition to tuition depends on whether you live on or off campus. Since learning financial responsibility is just one of the many lessons we all must face, choosing to commute rather than live on campus is a financially prudent decision that can save tens of thousands of dollars.
Alex GoodmanAccording to College Board data, the average budget per year for in state students attending a four year public school was $27,533 during the 2021–2022 academic year. If you go to a private, non profit college or university, it will cost you about $55,800 per year. These figures include tuition, the average cost of room and board, books, supplies, transportation, and other expenses.
Tuition costs at a private, non profit school far exceed those of public institutions, even if you decide to go out of state.
Learn to Look Beyond Money
The money a college graduate makes can allow him or her to enjoy a number of material comforts. A nice car, a nice house, and some spending money in your pocket are the traditional rewards of financial success. Similarly, increased income provides the opportunity to save and invest. College graduates can live comfortably while they are working and can save and invest to make sure they have enough money to live comfortably when they retire.
While there is no doubt that the salaries are good, going to college also has other financial and intangible benefits. Several studies suggest that higher education leads to better health awareness, which translates into more time spent in the gym or other forms of exercise. Healthier eating habits often go hand in hand with a good exercise regimen, and exercise and healthy eating habits lead to healthier lifestyles, in general.
A college education also provides greater opportunities for promotion and upward social mobility, not only for the degree recipient, but also for non working spouses and children. A college education is also linked to more job security and less unemployment because college graduates often have skills that can be used in different jobs. So, if the widget factory closes, a college educated accountant or human resources professional can often easily move to a new job with another company.
Wrap Up
The focus on the cost of college education is often misplaced. But while the cost of a single year, especially at a private school, can be significant, most college graduates will recoup the amount spent in a single year of work. In some cases, such as for graduates of public schools, their first year’s salary will cover the cost of four years of college.
Putting money into a college education can lead to a higher income, more job security, and a better quality of life in the long run.
FAQs
Putting time and effort into improving your abilities, knowledge, and skills will boost your worth and potential. This can entail a full college education or enrolling in classes, reading books, going to seminars, or even making financial investments in yourself.
Investing in yourself can raise your financial security, confidence, and career opportunities. It can also assist you in acquiring fresh knowledge and abilities that you can use in your present position or in a different line of work.
You may invest in yourself in a variety of ways. You can educate yourself monetarily or simply through classes, reading, seminars, or other forms of reading. By taking the time to focus on your beliefs and goals and creating a plan to attain them, you can also invest in yourself.
A few ways to invest in oneself include getting a college education, going to seminars, reading books, taking classes, and making financial investments. By taking the time to focus on your beliefs and goals and creating a plan to attain them, you can also invest in yourself.
A college education can be expensive, and it depends on the kind of institution you go to. A four year public university’s estimated tuition is $10,740, whereas a private institution’s estimated tuition is $38,070. You might also need to budget for accommodation and board, books, supplies, travel, and other costs in addition to tuition.
A college education offers many advantages besides merely higher pay. Graduates from college are more likely to have stable jobs, experience lower unemployment rates, and have more chances to advance professionally and socially. College also increases health awareness, which results in more time spent exercising in the gym or doing other physical activities.
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- The College Board – Trends in College Pricing and Student Aid 2021
