Thursday, July 7, 2011

Go to College

It's summer, which means our kids are out of school and home driving us crazy!  Actually I think summer vacation is important for kids, because childhood is so very short, and they need time to just be kids.  However, I am pretty happy when the school bus comes back in September and the kids get back to learning.

As financial planners, helping our clients plan for the educations of their children or grandchildren is one our most important jobs.  Recently, there has been a lot of chatter that going to college is not worth the expenses - students graduate with enormous debts, college is more about partying than learning, etc...

However, the facts are pretty clear, a college education means higher earnings and less job insecurity.  Here is a chart from the Bureau of Labor Statistics:

You can see that the more educated one becomes, the more they earn and the lower the rate of unemployment.  In fact, as we look at the current "slow" economic recovery, we see that the majority of the unemployed are people with less than a high school diploma.  

This New York Times article expands in detail why a college education is such an important investment to make for your children.  So enjoy the summer and let kids play, but remember that getting them ready for college is a year round job.