College Investment Tips: Not worth it
Michael Robertson writes in The Biggest Gamble of Your Life that in 2005 “young people (ages 18-25) in the US gambled $67 billion,” on College and University. He determined that given the $151,835 investment in a four year private college you would earn $322,000 more than a high school graduate for an effective return on investment of 1.9%. Given that a decent mutual fund will earn a minimum of say 15% return, you’d be about 7 times better putting your money into traditional investments.
What this doesn’t take into account, though, is the personal benefit and satisfaction going to a private college gives you. It’s obviously true that Americans with college degrees are more sophisticated, intelligent members of society, even if they don’t make much more than their less-educated counterparts. After all, since it’s the human mind that makes us more than animals, I feel we have an obligation to develop it at all costs.
Still, the evidence isn’t conclusive. Certainly, the College Board thinks it pays off ultimately. However, the exponentially rising costs of private colleges may make the investment not look so promising.
| This entry was posted on Wednesday, December 13th, 2006 at 10:53 pm and is tagged with traditional investments, intelligent members, private colleges, personal benefit, college investment, michael robertson, investment tips, private college, college board, school graduate, exponentially, college degrees, return on investment, mutual fund, counterparts, obligation, satisfaction, animals, money. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback. |
4 Responses to “College Investment Tips: Not worth it”
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Most people don’t attend private college, and most of those who do attend private colleges get plenty of financial aid, so that $151,000 figure is not right for most people. Of course, I’d say that those who do pay that much may be a bit worse from a financial standpoint, but those people already have some money in their families that it fails to matter.
I can see the headline now: “Cornell Blogger Likens Uneducated, Animals”
Althought there are intanigable goods attach to a college degree. The major of students are investing for the other. Its important to have a good understanding and balance what is important to that person. Going into debt and not obtaining a job to cover the debt is a bad deal. Some degrees do not pay well. (education) while others have more of a chance to recover funding. The older the person, less your chances. Not everyone returning to school is under 25. Be wise, and careful of your investment.
is the personal benefit and satisfaction going to a private college gives you. It’s obviously true that Americans with college degrees are more sophisticated, intelligent members of society