When one invests in a savings account or the stock market, depending on your risk profile, you are looking for a positive guaranteed return on investment or a probable one. Otherwise, you wouldn’t invest. The same is true of how we decide to invest time and resources in post-secondary education and training. There is a lot of talk these days among adults and youth about whether a college education or equivalent post-secondary education and training for a career such as an electrician is worth it. If you ask someone about the value of a college education, the answers might range from “it was a waste of time and money” to “it changed my life.”
We believe that helping youth answer the question about an expected return on investment in various career options after high school can quiet down the noise and help youth make informed decisions. Key areas of consideration are:
Expected earnings
Different careers generate different starting salaries and wages. This means your income stream from your career choices will vary. This trickles down and impacts your lifestyle and the amount of reasonable debt you might take on. To avoid a negative return on investment, at a minimum, your income and expenses need to be balanced out. While there are limits to how much a student may borrow, other family members might borrow for them, putting the family at risk. Students should be able to forecast how their career choices can play out financially and make the best choice for them.
Strategies for obtaining your post-secondary education and training
Using your career end goal, research all the providers for the education and training you’ll need to start your chosen path. This includes the total cost, not just tuition. Take advantage of your support system, such as counselors, to help you apply for and maximize scholarships, grants, loans, etc. Learn about how to effectively transfer credits from local community colleges to four-year programs to potentially keep your costs down. Learn about companies in your area that offer tuition reimbursement. Check out careers of interest where you can work or apprentice during the day for your employer and attend classes at night.
Know yourself
In addition to the financial aspects, it is equally important to reflect on how you want to be trained and educated and where you would be comfortable. Think about your personal goals and how your career choices can complement those; understand your work personality and how different career choices will complement it or drain you of energy over the long run.
Put it all together
Your career strategy should include all these aspects. The topic isn’t whether college is worth it, because it is for many majors, but what education and training do I need to pursue my first career and what is the best strategy to get there? That may or may not involve a traditional college degree. For students who are skeptical about any form of post-secondary education and training, we need to show them the financial return of various careers they are interested in. For parents who are skeptical about careers that require education and training but not a college degree, students need to show them the positive financial aspects of these careers. Furthermore, can we expect high school students to figure this stuff out on their own? No. But Youthentity is here to help. Our new High Five Your Life program allows students to research and choose career possibilities and build out their future income and expenses, forecasting how career choices may play out financially. It isn’t discouraging, it’s encouraging. Having a clear path forward and being able to forecast your income, and expenses including debt payments that generate a positive return is empowering. Let’s lift the curtain and demystify this very important decision. All work is honorable; let’s show youth how to get there.
Kirsten McDaniel is the Executive Director of Youthentity, a Carbondale-based nonprofit that provides career readiness and financial literacy education to over 8,500 students throughout Colorado.
