The Spring College Guide in the most recent issue of Money magazine has less than Ivy league schools clocking in at over $70,000 for a year’s tuition. The only thing I see in reading that is a $280,000 in student loan (minimum) for a four-year degree. And I have to ask, what are you expecting to get paid for your four-year psychology degree exactly? It’s almost criminal that we allow our children to take on this much financial responsibility without truly educating them on what their life after four years of college is going to look like.
I’ve had the honor to teach at several New England colleges. I’m always in awe of the lack of financial skills that my students possess. Some of them may have been lucky enough to have one or two accounting classes in high school, but if I gave them a test on balancing a checkbook the results would be bleak. Higher education costs have no doubt reached a level of being out of control. We have a responsibility to educate ourselves and our children on all their options.
The direct sales industry, now booming with the rise of social media and ability to connect worldwide, creates more six figure income earners every year than any other industry. Furthermore, it does not require any college education. App development is one of the fastest six figure jobs in America right now and some of them are completely self-taught. And yet a student graduating with a bachelors degree in psychology, philosophy, or liberal arts is going to be challenged to make $45,000 a year with student loan debts nearly six times higher than their annual income. But no one is willing to have that conversation with them.
There are more options than ever now when it comes to education, training and the job market. Students can complete a degree program, slowly, and online while working full time and paying cash for their tuition. But as a society we push so hard that the only right path is to go right into a four-year degree program when they don’t have the funds to pay or the personal insight to even choose a field they necessarily feel passionate about for the next forty years. After that we continue to not educate them on their options to pay off student loan debt, buy a house, or even save for retirement.
I train 18-35 year olds on a regular basis on how to build a direct sales business working from home. Allowing them the freedom to travel the world, work from any where and not feel obligated to take on student loan debt. They have the time freedom to pursue a degree, if they choose, without having to also work a 9-5 to pay down their debts. These are millennials rivaling their parents’ income in their twenties without the burden of debt that limits their life choices.
Rising costs of tuition, housing, rising interest rates and the lack of financial education are all great reasons for us to start opening our minds to non-traditional options. There is no one right path to secure our financial future. Checking the boxes of college, job, 401(k) isn’t enough any more to build true wealth and financial freedom. I’m looking to continue to educate all of us on the options available in hopes of there being less clients in my office feeling trapped by their current financial circumstances.
If you’re interested in a free 20 minute consult call 603-781-8014.