Investing in a College Degree
Many say that a college degree is an investment. You invest your time, energy, and perhaps most notably, your money, to obtain a virtual certification for any job you please. And that may be very well true. But the fact of the matter is that you have to make sure that you’re getting the best bang for your buck.
A million dollars a year. Yadda, yadda. That million dollars is the supposed income gap between those who earn their college degree and those who don’t. And for a minimal cost of around $20,000, that million dollars can be yours. But what if you could do it for less? What if you saw your education as an investment.
I just want to explore this idea just for fun. An academic foray into, well, academia. So, without further ado:
Appreciation and a College Degree
In every personal finance article or suggestion about a college degree, no one cares to point out the value of the college you choose and the possible appreciation of the degree you earn. Instead, we tend to focus on the appreciation of a career, and there is nothing wrong with that, but you probably already have an idea of what you would like to do for a living. So why don’t we try to see how to make the most of it.
You see, there are a number of places you can go to school. Hundreds, if not thousands, of colleges all fighting for your dollar. The simple truth is, though, that some schools are going to provide you with an excellent ROI, and others will just provide you with an ROI.
See Your Degree Appreciate
Maybe I can better make the point if I explain my own situation. I went to a school that was just on the verge of growing out of its infancy. In the twenty years prior, the school added a variety of fields, new studies, apartment and housing units, and of course, students. The school’s capacity grew so quickly, in fact, that it had to actually reduce its academic standards in order to increase the number of students it could accept.
At the time, its reputation, at least locally, was far from spectacular. However, in due time, as the school’s name grew and so did the number of prospective students, academic standards were raised and my degree, as a result, would appreciate in value.
Many prospective college students fail to price in the future of their school’s success into the value of their degree. Sure, there are plenty of schools that rank fairly high for a number of programs, but at what point have they reached their peak? At what point will the degree hold no more value in the future than on the day it was earned?
For me, my degree will only appreciate with the growth of the school and its academic requirements. It is highly unlikely in these times of teacher tenure that the educators will be replaced, no, but the quality of the students that enter will be displaced. Quantity will eventually give way to quality and my degree, as a result, will only grow in value.
So why is this so important?
Well, mostly because I saved $20,000 over the cost of a “better” (read: more established) program in my major. So, before you buy the best, consider shopping on the bottom or middle shelf. You’ll probably get a better ROI right out of the gate, but also in the many years that follow, as well.
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