College is a big investment, and due to cuts in school funding and the outlook of the economy, some might think it’s too much of a risk. However, in a recent study, researchers found graduates holding a bachelor’s degree make 84% more than high school graduates over their lifetime. Those holding a doctoral degree will earn $3.3 million in a lifetime, compared to a college grad with $2.3 million and those holding a high school diploma with $1.3 million.
Low college graduation rates have not only made many question if college is for everyone but also if college students are prepared with the skills they need to enter college. Even if students are entering college with stellar grades in all their classes or with a pocket full of federal loans, do they have the skills to figure out how much college costs, how much interest they will pay, and how long it will take them to pay it back?
Among many great financial skills, LifeBound’s new book Dollars and Sense: How to Be Smart About Money helps students understand their relationship with money, what debt is and how to avoid it, how to compare costs of schools, and the benefits to saving for a big investment — like their education. When we think about college, we focus on the skills to get into college, the brains to pass college-level courses, and graduation day. In reality there’s a lot more to it. In the next few years following high school graduation, students will also accept or deny loans, lose and gain employment, have difficult relationships, and transition into new phases of life. Are your students ready to make financial decisions as they transition into higher education?
How have you helped your students or teens get financially prepared for college?
“College graduates earn 84% more than high school grads, study says” http://latimesblogs.latimes.com/money_co/2011/08/college-gradutates-pay.html