Going to College? Figure Out Your ROI First

In order to be competitive in your chosen field,When considering an investment in your higher
you've decided you need a four year degree. What iseducation, you must factor in all of your education
the average income for high school and collegeexpenses. This includes tuition, room, board, travel,
graduate? Measured in 2006 dollars, the medianbooks, lab fees, food and other expenses. What
earnings for adults' ages 25-34 who worked full timeschool you choose is another important factor. Is
throughout a full year increased as education levelspending $100,000 versus $25,000 for a bachelor's
increased this pattern held true for males and femaledegree a huge benefit? Do you really want to
across all ethnicities.graduate college $100,000 or more in debt before
Will my degree payoff?starting your new career? To pay off your debt of
The earnings difference between those with at least$100,000, you will pay $1,000 per month and it will
a bachelor's degree and those with less educationtake you until you are 32 to 35 years old to pay off
increased dramatically between 1980 and 2006.your education. This assumes a 2-3% interest rate.
However, between 2000 and 2006, there wasDuring those 10 years, chances are you will be
generally no measurable change.putting a huge strain on your finances. Most likely,
The average high school graduate will make aboutyou'll have to put off the purchase of a home,
$700,000 to $1,000,000 on his/her lifetime versus adelaying building equity in your house you couldn't buy.
bachelor's degree which will generate $1,400.000 toIt will also put a strain on your ability to invest in your
$2,100,000. This will have a huge effect on yourcompany's 401k or other retirement vehicles.
lifestyle. While money can't buy you love, obtaining aROI on your degree
good career will open you to more opportunity. YouWhat is the best return on your investment? Since
will have the ability to save more for retirementthe first two years of your education will consist of
through a 401k or Roth IRA. You will have the meansmandatory classes such as gym, Math and English 101
to purchase a house in a good neighborhood allowingetc, some may consider going to a state school or
you to build up equity and home ownership.community college. This is especially beneficial in case
Your major will influence your lifetime earningsyou're still exploring your major and career choices. In
Now that we've established the importance of amost cases, you can transfer those basic courses
degree, what career path you choose is vital. Theover to your next college. After all, when your
average liberal arts major will take home $30,600employer is looking at your resume, they'll be looking
while the first year chemical engineer will bring in overwhere you've graduated from, not the road you
$60,000. Start thinking as your college education nottook to get there.
only as an investment in knowledge but in yourWeigh your educational options and spend your
retirement as well.dollars wisely. The time you take to plan now, will
Are you prepared for school expenses?pay dividends well into your future.