My "Baby" and College
- Kendrall Masten
- Jan 21, 2017
- 2 min read
College is no doubt one of those investments as a whole that brings a growth shift to a person’s development. Anyone who remembers the characters in A Different World will vividly remember the many actions without little thought moments of Ron Johnson and DeWayne Wayne that kept them in trouble. Then later they became older and wiser due to their experience in college!
Research and anecdotal evidence has indicated for decades a college graduate can earn $1 million more than high school graduates over their lifetime. Also given the 21st Century economy, the type of major selected can have a huge variance among its siblings of majors.
So unfortunately all degrees are not created equal and high school diplomas are often forgotten about or viewed as a sure-thing to even join the conversation.
If a college degree or a specialized post-high school skill is the prerequisite then where do we start?
Bluntly, Parents/Guardians/Loved-ones have to check emotion and idealism at the door with a dose of pragmatism and reality. Yes, a 2014 Pew Research Survey showed that Millennial college graduates employed full-time usually make more than their counterparts who only hold a high school diploma. But going nearly six figures in debt to hold that degree is not the approach we want to choose mom, dad and grandparents! Of course, as the person embarking on the collegiate journey you shouldn’t let yourself or your loved-ones go into deep-sea debt so you can attend a school that is unaffordable based on your (family) financial resources. Sites like CollegeCalc and College Scorecard are good resources to learn more.
However if you’re already $40K in debt and you haven’t even began your second semester of your sophomore year there is still hope! First, remember the general rule of thumb is your final college debt should not exceed your expected first year’s salary. So lets say your first full-time job could range from $40,000-$50,000 then seriously think about ways to mitigate potential debt as you move through the remainder of your collegiate career.
This will without a doubt put you and your family on a path to build wealth!
