Education ROI

OK Frank Money here, your very effective money detective – Listen up! We need to know the R-O-I of that higher education your pursuing?

What’s ROI you ask? That’s RETURN ON INVESTMENT.

Whether it be college, trade or vocational schools you INVEST your time as well as money to get an education. The end result is a career you hopefully will love with yearly earnings being the RETURN.

It’s important to ask yourself – what is the payoff for all your blood, sweat and tears…and cost. It’s time to do the math.

QUESTION 1 – What is the cost of your higher education.

QUESTION 2 – What is the average starting salary of a job in your area of study?

The blog fivethirtyeight.com has a great chart of understanding what the average median earning is for your degree and future job.

http://fivethirtyeight.com/features/the-economic-guide-to-picking-a-college-major/

QUESTION 3 – Now look the first two questions – how many years will you have to work to equal the cost of higher education. In other words, how many years of working will it take you to break even in paying back that cost of education.

That’s your ROI.

Life is about pursuing interests that you love, but it’s equally important to consider the path you take and whether the return will be worth it.

April is National Financial Literacy Month, Detective Frank Money’s favorite month! To celebrate the importance of being financially literate, Detective Money is going to post financial literacy tips every day.

What Is The
Return On Your Degree?

I’m Frank Money, your very effective money detective.

I was reading my tablet this morning an came across this post by the blog FiveThirtyEight that I deduced was right on target – check it out!

https://fivethirtyeight.com/features/the-economic-guide-to-picking-a-college-major/?ex_cid=538twitter

As I’ve always said – It’s important to foresee the return on your degree!

I find myself rhymin’ all of the timin’…

Want To Avoid College Debt?

Sometimes just being clever is the best way to save yourself money! From Good Morning America – Texas Man Builds Miniature House in Hopes of Avoiding College Debt!

Joel Weber said he’s determined to incur less college debt by living in the tiny, 145-square-foot house he built, rather than struggling to pay higher rent in his college town of Austin, Texas.

“I wanted a place to call home,” Weber told ABC News. “I wanted it to be affordable so I could be debt-free and let it be an investment to give back to the community — not just dumped into rent that I wouldn’t get any return on.”

Weber, who will begin his junior year at the University of Texas at Austin, said it can cost upwards of $800 a month to live in the area near his school.

Click here for more of the article

minihome

 

Student Loan Calculator

From the Hamilton Project, here’s a great tool for calculating the costs of your student loan. It’s important to have an understanding on how much you are borrowing, what your monthly payments will be once you graduate, and how much of the money you owe is actually interest.

As yourself the question – How hard will it be to pay off my loan?

Click here for the calculator

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