SNM121: Is College a Good Investment? - Serve No Master (2024)

When I was seventeen, it was time to start applying to colleges. Twelve acceptances and two wait listings later, I made my final decision. But was it the right call? Could I have made a better decision?

Asking the Right Question

We live in an age where most parents expect their children to go to college.

We assume that the fastest path to success in life and business comes from four years at a prestigious university.

So as our children are ready to graduate high school, we start asking them where they want to go to school.

But that is no longer the best question.

If there is one thing that I’ve learned from watching my fellow Millennials graduate, it’s that there are plenty of trash degrees from every single college.

I know people who spend a quarter of a million bucks on their education and are now flipping quarter pounders or pouring coffee for a living.

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We need to break through our assumptions and ask the RIGHT question.

Should my child go to college or not?

This question should come before discussions about where your child will apply.

The University Racket

Universities are a business, and they seek to make a profit.

Yet they act like pharmaceutical companies and pretend that they only care about your best interests.

That’s a complete lie.

The problem in our society is that the government is in collusion with education.

The government has all these programs set up to help you save and pay for your child’s education.

Did you know that a student loan is the ONE kind of debt that sticks with someone who declares bankruptcy?

That’s a sign that something isn’t right with this game.

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Universities play a shell game with their information.

They want you to focus on ANYTHING other than what matters.

Will My Child Have a Better Life If They Go to This College?

This is the core question, and no university wants you asking it.

They don’t want you to realize that the emperor’s new clothes are actually rags.

They have several popular ways of masking reality.

Universities love to brag about their levels of diversity.

It’s very trendy right now.

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But is diversity going to help your child?

The ultimate experiment in diversity was the Tower of Babel.

An absolutely diverse university would have one hundred students of one hundred ethnicities speaking one hundred different languages.

They would have maximum diversity, but be completely unable to communicate with each other.

Before you launch an ad hominem attack, please remember that my family would score a near perfect on a diversity test.

But remember, university is about spending money to provide your child with a better life.

Ifa university wants to talk about ANY other topic, then they are trying to distract you.

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The other place that schools are allowed to lie, courtesy of US law, is post-graduation job placements.

If your child graduates from a university and then comes to work for you part time as an assistant, that university will take credit.

They will tell the next generation that they are the reason your child got hired.

What they will NEVER do is publish a statistic for how many graduates have GOOD jobs.

Because if this number were ever released, we would start burning chancellors in effigy.

[easy-tweet tweet=”Schools brag when their students graduate with 100K+ in debt and make 8bucks an hour as baristas.” user=”ServeNoJonathan” hashtags=”servenomaster”]

I Loved The School So Much that I Started Working Here

This is what every tour guide at my university used to say. (Side note I applied to be a tour guide and they said no!)

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Everyone in the admissions department was also former students.

When you are caught up in the tour, you start to think that the university must be such a magical place that people never want to leave.

We think of Never Never Land.

But this is the ultimate red flag.

People graduate from here, can’t find a job, and end up trapped.

The next time you are visiting a campus and starts feeding you this garbage, please do me a favor and ask them this question:

“How many job offers did you turn down when you decided to stay on here?”

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Be prepared.

There are only two responses to this question, tearsof depression or pure rage.

They will either instantly break down crying, or they will come at you like a hurricane.

Nobody likes to have some stranger shine a spotlight on their failures.

The truth is that hanging around a school after you graduated starts to get a little creepy.

Would you like it if some forty-year-old was giving tours of the local kindergarten?

It would seem like they never grew up and this is the same thing.

Stick to your core question –

  • Will this school make my child more money than it costs?
  • Will it give my child a better life?

Show Notes:

SNM121: Is College a Good Investment? - Serve No Master (7)

Key Points:

  1. Treat college as a business decision
  2. Look through the smoke and mirrors
  3. Ask the right questions

Resources Mentioned:

Breaking Orbit

Serve No Master on Amazon

Most other links can be found in my TOOLBOX

Send in your questions to podcast [at] servenomaster [dot] com

Sponsor:

SNM121: Is College a Good Investment? - Serve No Master (9)

SNM121: Is College a Good Investment? - Serve No Master (2024)

FAQs

Is a college degree still worth the investment? ›

College graduates still enjoy higher earnings than the average U.S. worker. The U.S. Bureau of Labor Statistics (BLS) reports that in 2022, bachelor's degree holders took home a median wage of $1,432 per week, while workers with just a high school diploma earned only $853. That's a difference of 68%.

Is college tuition a good investment? ›

Comparing individuals who completed a bachelor's degree to those who had finished only high school, the researchers found that earning a degree provided a rate of return on investment of 9.88 percent for women and 9.06 percent for men, based on median earnings.

Is college a risky investment? ›

As with any investment, investing in a four-year college degree is risky. And many of the available estimates rely on best-case scenarios, assuming, for instance, that an entering student actually earns a degree.

Why is college a smart investment? ›

A college graduate is 177 times more likely than a high school graduate to earn $4 million or more during his or her lifetime. Millennial workers with a high school diploma can expect to earn only 62% of what the typical college graduate earns.

What college degree is the best investment? ›

College majors with the highest and lowest return

A recent study published in the American Educational Research Journal found that engineering and computer science majors provide the highest returns in lifetime earnings, followed by business, health, and math and science majors.

Have college degrees lost their value? ›

In 2023, a Wall Street Journal-NORC poll revealed that 56% of Americans think a four-year college degree isn't worth the cost.

What degree has the lowest rate of return? ›

Specifically, Computer Science and Engineering majors have the highest IRRs, exceeding 13%, whereas Humanities & Arts and Education majors have the lowest IRRs, around 5% for male and 8–9% for female college graduates.

Is college worth it in 2024? ›

Pew's study, “Is College Worth it?” (May 2024), found that 40% of Americans say a college degree is “not too” or “not at all” important in order to get a well-paying job. One third of the 5,203 respondents say that a college degree is “somewhat important” in getting a well-paying job.

Is college worth the money pros and cons? ›

Quick summary. Bachelor's degree graduates in the U.S. earn around 40% more than high school graduates. Colleges are a great space for networking with experts across many fields. Colleges tend to me more expensive and more rigorous than high schools, which can be stressful.

Is there a high return on investment for college? ›

Bachelor's degree programs have a median ROI of $160,000, but the payoff varies by field of study. Engineering, computer science, nursing, and economics degrees have the highest ROI. Associate degree and certificate programs have variable ROI, depending on the field of study.

What is the ROI of your college degree? ›

ROI (After Completion Adjustment): The amount that a student can expect to see his or her earnings increase thanks to the college degree, subtracting the direct and indirect costs of college, and accounting for the risk that the student will drop out before finishing the degree.

What is the safest investment class? ›

11 Best Low-Risk Investments for 2024
Safest Investments at a Glance
Investment ClassSafetyUpside Potential
Money Market FundsHighLow
CDsHighLow
TreasurysVery HighLow
8 more rows

Why isn't college a good investment? ›

It can be expensive. The average cost of just one year of college can range anywhere from about $27,000 for a public, in-state university to a whopping $56,000 for a private university. Unless you're entering a career field that pays an astronomical income, investing six figures for a degree often isn't worth it.

Is college worth it anymore? ›

Yes, college is still worth it: The wage gap between recent college and high school grads has been widening for decades, and grew even more last year, per new data from the Federal Reserve Bank of New York. Why it matters: Even so, Americans are falling out of love with the idea of a four-year degree.

Is college a worthwhile investment? ›

College is a good investment

By 2021, the difference had grown to 62 percent (and closer to 90% for workers with graduate degrees). Currently, California workers with a bachelor's degree earn a median annual wage of $81,000.

Are college degrees actually useful? ›

Increased Access to Job Opportunities

For example, college graduates see 57 percent more job opportunities than non-graduates. A degree enables you to qualify for these additional opportunities and offers you more flexibility in where you choose to work.

Do the benefits of college still outweigh the costs? ›

Thus, while the benefits of college still outweigh the costs on average, not all college degrees are an equally good investment. The economic benefits of a college degree can be thought of as the extra wages one can earn with a college degree relative to what one would earn without one.

Is a degree worth it in 2024? ›

A new Pew Research Center analysis finds that job opportunities and wages are improving for workers without a bachelor's degree. Still, earning a four-year degree is almost always worthwhile, other research shows.

What percentage of Americans have a college degree in 2024? ›

Educational Attainment by State 2024
StateHigh School or HigherBachelors or Higher
Mississippi85.3%22.8%
Texas84.4%30.7%
California83.9%34.7%
United States88.5%32.8%
48 more rows

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