How to pay for higher education - college

Getting a higher education is a given for most families that want to “make it”. But, did you know that college may be a bad idea, shocking! Now before you kids run out to tell your parents what I said, there are several caveats.

First of all, you need to have a back up plan. If you put off college so you and your buddies can play XBOX more, that is a bad idea. What I am talking about is getting a job! If one has a strong back and the desire to get out there and do something, more money can often be made by NOT going to college.

Now you may have heard every financial advisor say that the average college graduate earns 30 quintillion more dollars on average than the non-college graduate, which is true. The problem is that they are talking about AVERAGES. That fact ignores that many of the people that don’t go to college, don’t go there because they are lazy or mentally incapable in the first place. Those people are unlikely to earn much money regardless.

We all know there are many hard working people who never graduated college and became incredibly rich, including Bill Gates and Andrew Carnegie, who had about a sixth grade education. Hard work can often earn you more in the long run than an education. The key is we should not waste our money or our time.

The main premise to my idea of college not being best in all situations is the time value of money. The idea is that if you invest money today, it will compound, or multiply over time. If a person works hard and invests for the four, five, or more years that most people go to college, one will already have a huge nest egg that has started to grow, while the college graduate will simply have a pile of debt. The key here is to invest. If you work for those college years and only invest in beer, you are NOT going to be ahead.

Another thing that averages don’t take into account is that many Union and blue collar jobs pay more than many college jobs. I know of many machinists, factory workers, and post office delivery men that earn more than my social worker, conservationist, and sociology major friends. The key again is to have skills that people need and are willing to pay for.

You may not like the idea of driving a truck, or fixing potholes in the road, but those are jobs that are not going to be outsourced to China. And, when the college graduate accountants have all been made redundant, the roads will still need fixing. Some non-college jobs are more stable and dependable than the alternatives.

You should also look abroad and be prepared to travel where opportunities take you. I know uneducated people who have gone to work in the oil fields in the middle east who have made much more than they ever could here in America, even with a degree. Even if you stay in the same country, you should also be open to moving to where your opportunities lie. College educated people often move for their careers and everyone should be prepared to go where the money is.

I am not against education, far from it. I suggest that non-college graduates get as much education as possible, especially about money, starting here. I just don’t believe that you always have to pay for it. There are plenty of libraries and internet sources that can educate you for free (like this blog). There are even free college pod casts downloads available. I couldn’t believe MIT and Harvard would ever give away their products. Take advantage of all your resources so you can make wise decisions of what to do with your money.

If you do decide to get an education, I am not saying there is anything wrong with that, it may just not be the best idea financially, despite what “everyone” says. I went back to college after many years and now have several degrees, including a Master of Business Administration. However, I primarily went back for the prestige factor. That is something that has to be considered. In many social circles, non-college degree holders are looked down on, even if they make more money, sad to say. If social respect is a consideration, you many want to go to college anyway despite the financial considerations. You may also have a love of a certain profession like law or social work, and of course that would be a great reason to go to college. Money can’t be the only reason we do things, it is one of many considerations. If you do decide college is for you, read my blog on how to save money on higher education.