The value of a university degree

I am a long-time supporter of higher education. For me, this is personal. I grew up in a poor family. My parents went to college briefly, but they never had real enthusiasm. (I’m not sure what my father has plans. My mother studied housekeeping. Not kidding.)

My uncle got a degree in mathematics from a now-defunct community college, and his son (my cousin Duan) returned to school in the east. However, I am not sure if he has a degree. (I will ask him when we get together tomorrow to bake Christmas cookies!)

But I have known since I was a kid A generation Want to go to university. I know that I am a smart kid, and I think college is a way out. This is escaping from the trailer house where I grew up, escaping from manual labor.

Too bad, I wasted my college education. I entered Willamette University with the goal of majoring in religion, but I eventually got a degree in psychology-being chased by an equally useless minor in English.

My university degree did not really prove useful in my life. Well, I think I will apply both psychology and English education to my career as a financial writer, but I will not directly use what I have learned. This is where the problem lies.

University degree Yes Valuable-but not if you choose the wrong one.

Although it is very popular in some corners, because its university degree is bad talk, According to the U.S. Census Bureau How much does your education affect your lifetime income potential any Other demographic factors. Education is more important than age. Education is more important than race. Education is more important than gender. Speaking of making money, education is very important most.

Therefore, I am always interested when I see known reports and/or research on the value of universities. In October, the Equal Opportunity Research Foundation (FREOPP) released an excellent report entitled “Is the university worth it? A comprehensive return on investment analysis”.

I like this report because it is above average. Of course, FREOPP said, median For students who graduate on time, a bachelor’s degree is worth $306,000, but…

…The median hides a huge change. Some research fields, including engineering, computer science, nursing, and economics, can generate returns of $1 million or more. Others, including art, music, religion, and psychology, usually have zero or even negative net financial value.

FREOPP believes that “the decision to go to university is not as important as the next choice: which school to go to and which subject to study.”

The analysis shows that the course a student chooses may be the most important financial decision he or she makes. Most bachelor’s degree programs in engineering, computer science, economics, and nursing will increase lifetime income by $500,000 or more even after college fees are deducted. But most courses in the fields of art, music, philosophy, religion, and psychology make the financial situation of students worse than if they hadn’t been to university at all.

The difference in return on investment between plans can be as high as millions of dollars.

FREOPP report-this is Very long — includes a large number of interactive statistics and graphs. Readers can compare the value of university majors, expected income, etc.

The FREOPP report echoes Georgetown University’s 2015 report on “The Economic Value of University Majors”A study by Georgetown University found that the median annual income for engineering majors is $50,000. The annual salary of a person with an art degree is approximately US$28,000. Are there any high school graduates who have gone to college? Well, their average starting salary is $22,000 per year.

Bottom line? FREOPP said there are three main messages that can be derived from their report.

• First of all, major is the most important factor in predicting the return on university education investment. Degree subjects accounted for almost half of the change in ROI.
• Second, prestigious universities can bring rewards, but not always. FREOPP found that there is a weak correlation between the cost of a school and the value of the school’s degree. However, as with majors, there are many changes. A film degree from Harvard University may be more valuable than an engineering degree from an “unknown” university.
• Finally, from a financial point of view, many bachelor degrees are meaningless. You may want an art degree or a religious degree for other reasons, and you may be satisfied with these degrees, but from a monetary point of view, they are poor choices.

When I write on this topic, I always say this: The more you learn, the more you earn. This is real. No, a college degree does not guarantee that you will earn more, but it has never been. However, generally speaking, the more formal education you receive, the more money you will make in your lifetime. This report only reinforces this conclusion.

[“Is College Worth It? A Comprehensive Return-on-Investment Analysis” at Foundation for Research on Equal Opportunity]