Higher Education ROI


Here’s something I didn’t have to worry about when I went to the school of hard knocks…ROI. That stands for ‘Return On Investment’ when deciding to continue studies with higher education.

The days from the classic film, Animal House, are over. Attending college for 6 years partying. We all know about the spiraling higher education costs per year can go well above $30K! I can safely say graduating with a 4-year college degree in Liberal Arts has gone out with the horse and buggy.

So before going into high debt you should ask yourself what will be my return on the investment I make on my major? How many years will it take to pay back my loans in the field I’ll be working in?

Will the job you get after getting the degree pay off with you making more money over time?You’ve heard the saying ‘Time is Money’? Well in this case it’s ‘Is My Return Be Worth Investing The Extra Money’?

It’s probably a good idea to limit the total amount of debt to one year’s starting salary when it comes to college loans.

It’s okay to pursue your interests but also give yourself a good honest talking to, and a little detective work wouldn’t hurt either, as to whether this investment really going to be worth it for me. Check me out on your local public television station – my show Talkin’ Money Minutes is seen nationwide.

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.


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.