Boy Scout Troop 325
Scoutmaster Minute
The Value of An Education
July 15, 2003
George Denise, Scoutmaster

Recently, there was an article in the San Jose Mercury News entitled: "Is College Still Worth the Expense?" They noted that the cost of a four-year education, including tuition, room, and board at a campus of the University of California costs over $80,000; $50,000 plus at a branch of the California State University system. A degree from Stanford or one of the Ivy League schools will cost over $120,000.

That's a lot of money for four years of college. Not only are you paying a tremendous amount of money for school, you are losing the money you could be making if you were working instead. So, what's the real value of taking four, or five, or six or more years to get that degree?

There is the intangible, of course; the knowledge you gain about how the world works and things in general. It helps prepare you to make the informed decisions you need to make, for example, to vote on matters of importance to us all. But how about the money? Is it really worth it in dollars and cents?

Consider the following: they compared the average income of 30-year olds in California. The average 30 year-old with a 10th grade education can expect to earn $30,437 per year. The average 30 year-old with a high school diploma does a little better, earning $40,449 per year. Not too bad. With an AA degree (two-year college degree - it stands for Associate of Arts), that amount jumps up to $49,348 per year, and with an AS (Associate of Science), that number jumps again, to $51,821. With a four-year degree, that number increases again, to $61,425 per year. With a master's degree that income increases to $67,337 per year. With a professional degree (medical doctor, dentist, jurist doctorate, for example), that number increases again, to $79,603 per year.

Now remember, these are average incomes for 30 year-olds. Typically, our highest earning years are in our 50's, where the annual incomes will be much higher. But even if we use just the difference in income at 30 years of age, then over a 45 year career, the average person with a four-year degree can expect to earn about $943,920 more than the average person with just a high school diploma. There are exceptions, but overall, the person with the greater education earns more.

So you tell me. Do you think the cost of college, $80,000 - $120,000 to gain a return of almost $950,000 is worth it? Sounds pretty good to me!

Thank you, and God be with you.