Going To College? Determine Your Return On Investment First
In order to be competitive in your chosen field, youve decided you need a four year degree.
What is the average income for high school and college graduate? Measured in 2006 dollars, the median earnings for adults ages 2534 who worked full time throughout a full year increased as education level increased this pattern held true for males and female across all ethnicities.
The earnings difference between those with at least a bachelor's degree and those with less education increased dramatically between 1980 and 2006. In 1980, those with a bachelors degree or higher earned $14,600 more than those who did not earn a high school diploma. In 2000, this difference increased to $23,400 and $23,600 in 2006.
The average high school graduate will make about $700,000 to $1,000,000 on his/her lifetime versus a bachelors degree which will generate $1,400.000 to $2,100,000.
Your choice of college degree can have a huge effect on your lifetime earnings. While money cant buy you love, obtaining a good career will open you to more opportunities. You will have the ability to save more for retirement through a 401k or Roth IRA. You will have the means to purchase a house in a good neighborhood allowing you to build up equity and homeownership. You will be eligible for a larger social security check when you retire.
Now that weve established the importance of a degree, what career path you choose is vital. The average liberal arts major will take home $30,600 while the first year chemical engineer will bring in over $60,000. Start thinking as your college education not only as an investment in knowledge but in your retirement as well.
When considering an investment in your higher education, you must factor in all of your education expenses. This includes tuition, room, board, travel, books, lab fees, food and other expenses. What school you choose is another important factor. Is spending $100,000 versus $25,000 for a bachelors degree a huge benefit? Do you really want to graduate college $100,000 or more in debt before starting your new career? To pay off your debt of $100,000, you will pay $1,000 per month and it will take you until you are 32 to 35 years old to pay off your education. This assumes a 2-3% interest rate. During those 10 years, chances are you will be putting a huge strain on your finances. Most likely, youll have to put off the purchase of a home, delaying building equity in your house you couldnt buy. It will also put a strain on your ability to invest in your companys 401k or other retirement vehicles.
What is the best return on your investment? Since the first two years of your education will consist of mandatory classes such as gym, Math and English 101 etc, some may consider going to a state school or community college. This is especially beneficial in case youre still exploring your major and career choices. In most cases, you can transfer those basic courses over to your next college. After all, when your employer is looking at your resume, theyll be looking where youve graduated from, not the road you took to get there.
Weigh your educational options and spend your dollars wisely. The time you take to plan now, will pay dividends well into your future.
What is the average income for high school and college graduate? Measured in 2006 dollars, the median earnings for adults ages 2534 who worked full time throughout a full year increased as education level increased this pattern held true for males and female across all ethnicities.
The earnings difference between those with at least a bachelor's degree and those with less education increased dramatically between 1980 and 2006. In 1980, those with a bachelors degree or higher earned $14,600 more than those who did not earn a high school diploma. In 2000, this difference increased to $23,400 and $23,600 in 2006.
The average high school graduate will make about $700,000 to $1,000,000 on his/her lifetime versus a bachelors degree which will generate $1,400.000 to $2,100,000.
Your choice of college degree can have a huge effect on your lifetime earnings. While money cant buy you love, obtaining a good career will open you to more opportunities. You will have the ability to save more for retirement through a 401k or Roth IRA. You will have the means to purchase a house in a good neighborhood allowing you to build up equity and homeownership. You will be eligible for a larger social security check when you retire.
Now that weve established the importance of a degree, what career path you choose is vital. The average liberal arts major will take home $30,600 while the first year chemical engineer will bring in over $60,000. Start thinking as your college education not only as an investment in knowledge but in your retirement as well.
When considering an investment in your higher education, you must factor in all of your education expenses. This includes tuition, room, board, travel, books, lab fees, food and other expenses. What school you choose is another important factor. Is spending $100,000 versus $25,000 for a bachelors degree a huge benefit? Do you really want to graduate college $100,000 or more in debt before starting your new career? To pay off your debt of $100,000, you will pay $1,000 per month and it will take you until you are 32 to 35 years old to pay off your education. This assumes a 2-3% interest rate. During those 10 years, chances are you will be putting a huge strain on your finances. Most likely, youll have to put off the purchase of a home, delaying building equity in your house you couldnt buy. It will also put a strain on your ability to invest in your companys 401k or other retirement vehicles.
What is the best return on your investment? Since the first two years of your education will consist of mandatory classes such as gym, Math and English 101 etc, some may consider going to a state school or community college. This is especially beneficial in case youre still exploring your major and career choices. In most cases, you can transfer those basic courses over to your next college. After all, when your employer is looking at your resume, theyll be looking where youve graduated from, not the road you took to get there.
Weigh your educational options and spend your dollars wisely. The time you take to plan now, will pay dividends well into your future.
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