Tag Archives: Costs

Why Being a Poser will leave you Broke

Honesty

Can we be really honest for just a minute? I have a question for you.

Are you a poser?

I’m guessing most of you know what a poser is, but if not, here’s what Google says…

Poser

Posers

So by Google’s definition, I’m guessing we’re all posers from time to time. Honestly, who doesn’t try to use money to impress others in some way or another? We buy clothes that may be just a little out of our price range. We drive nicer cars than we can afford so we lease them or take out loans. We buy dinner for our friends knowing that it’s going hurt later. Heck, even our cell phones say something about our status so we pay whatever we have to for them even if it costs us an arm and a leg.

Impressing other people isn’t cheap.

Sometimes we even feel such a strong need to impress others that we do it at great financial harm to ourselves. Take college selection for example.

As students start looking at colleges and begin to decide where they want to go, they have to process a lot of important school information: location, transportation, degrees offered, tuition costs, room and board costs, financial aid packages, work opportunities, etc.

The Elusive Prestige

Of course these are all really important and really smart things to be thinking about. But here’s the deal, 18 year olds aren’t only thinking about those things. If you’re going to college soon, chances are you’re thinking about less tangible, less quantifiable things; things like the culture of the school, the “fun-factor”, and how prestigious the school is.

A lot of high school seniors (and their families especially) are really concerned about that last one; prestige. Again, we turn to Google…

Prestige

Prestige is really, really important to a lot of students and their families when choosing a college. It’s as if certain colleges seem to be able to offer a higher level of esteem, respect, and status to their graduates. Highly esteemed colleges produce better quality graduates that are more desirable in the marketplace, right?

Certainly if employers knew you went to one of these highly respected schools they would be much more likely to offer you a job over the common shmuck that went to the community college down the road, right… right?

Well, probably not.

Honestly, employers are really not all that concerned with where you went to college. There are of course some careers that are an exception to this rule, but they are certainly not the norm. The truth is after you graduate college the only person who cares about where you went to school is you.

“Only the Best” Mentality

You’ve probably heard that you have to get into the best possible school that you can. This is taught to students all the time from teachers, counselors, and family members. Let me be the first to tell you, It’s not true. It sounds great but its horrible advice.

Better advice would be that you have to get into the best possible school you can realistically afford and that offers the best return on investment.

Just because you get accept to a prestigious school doesn’t mean you can afford it. It also doesn’t mean you should take out a life time of student loans to go there.

You really have to think these things through.

The kindergarten teacher who graduated with $150,000 in student loans isn’t going to be getting paid any better than the teacher who graduated with $10,000 in student loans. Remember, the only person who cares where you went to school is you.

So before you decide to sign on the dotted line and agree to take out a massive student loan in order to get into that super cool school, think about your motives. Who are you really trying to impress? Is their brief and passing admiration worth it? How super cool will it be when you have to pay $600 a month in student loans until you’re 40? How prestigious will it be when you have to move back into your parent’s basement after graduation because you’re broke?

Think about it. That’s all I’m asking.

As a guy who graduated from a rather expensive private university with a degree in education, I feel like I have a pretty decent understanding of this whole idea of getting a good return on investment for a college degree. I learned the hard way though. I spent too much plain and simple. I didn’t learn that until years later though.

So tell me your story. I’d love to hear your thoughts on this issue. Comment below to share.

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Education: Return On Investment

RROOII

A New Age

There was a time in history when a college degree would guarantee you a successful and profitable career. If you had a degree you enjoyed a nice big paycheck to go along with it. It was easy; a degree meant more money plain and simple.

That time has passed.

Sorry.

This is a new era. It is the age of college graduates who work at Arby’s. This is the age of graduate students who live in their parent’s basement. This is age of realization. It is a rude awakening. People are starting to realize that a degree isn’t the magic ingredient it used to be. A lot of the time it is necessary, but it is not enough. You can no longer flash a degree at an employer and expect money to be thrown at your feet.

A degree is a tool to help you shape your future. It’s a very expensive tool, but a tool nonetheless. Now, more than ever, it’s important to look at a degree as an investment in your future. When you look at an investment the one thing that simply cannot be ignored is the return on that investment.

What is ROI?

ROI (Return on Investment) is a performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. Or more simply put, it’s what you’ll gain or lose from an investment.

An Example

If you look at a degree as an investment (which it is) then obviously some will yield a higher ROI then others. Let’s use the teaching profession as an example.

Two students from rural Indiana decided to follow their passions and become teachers. They both planned on returning to their home town to teach kindergarten in one of the local schools. They both got exceptional grades in high school and got great ACT and SAT scores. They had nearly every college and university available to them.

The first student applied to as many prestigious schools as she could.  She decided to go to a very competitive out of state college. She did not receive nearly as much financial aid or scholarship money attending this university. The degree was exceptionally expensive, but because she was accepted by such a prestigious school she thought she would be cheating herself if she didn’t go there.

The second student decided to go to a local community college. The college was small and fairly inexpensive. Because of her grades she was able to get some decent scholarships from the school. The school was not very well known, but she didn’t mind. The campus was close enough that she could live at home and because of that and her scholarships she didn’t need to take on any student loan debt to get her degree.

Upon graduation both student graduated with honors and were able to return to their home town and easily get a job teaching kindergarten in one of the local elementary schools.

Which student had the best return on investment from their degree?

Obviously the second student had the best return on investment. She was able to graduate without debt and start at the same salary as the first student who took on massive student loan debt to do the same thing. Both are going to be making about the same amount of money. Both are going to be kindergarten teachers. Both ended up in the same place, one just spent a lot more to get there. A quality education is important, but you shouldn’t be bankrupting your future to get it.

Earning Potential

You have to think about the earning potential of a degree. Why would a local elementary school in rural Indiana pay significantly more to hire an Ivy League grad than someone else with the same degree from a local college? Answer: they won’t.

There are a lot of noble and humanitarian careers that pay horribly. I would (almost) never discourage you from pursuing a career in one of those fields. They’re good jobs, but spending hundreds of thousands of dollars to get a job making $30,000 a year just doesn’t make sense. If you want to be a teacher, social worker, or some other equally underpaid profession, then you need to be realistic about how much you should invest in your degree (hint: less is better).

On the other hand, if you really want to impress people with you’re really expensive and prestigious degree then by all means ignore everything I’ve just written. I’m sure your co-workers won’t be able to get enough of your stories about how you went to an expensive Ivy League school.

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How NOT to Pay for College

There are many ways not to pay for college, this is one of them.

That is all.

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