The Cost of an Education

Photo provided by chrisof4 at morguefile.com

A personal finance blogger was criticized this week for commenting via twitter that he wouldn't be paying for his son's photography degree. The article wondered how much influence parents should be able to have when financing a child's college degree. I have a child that has just graduated high school. I have also completed two college degrees within the last 5 years so this is a topic that resonates with me.

While we know that college graduates earn more over their lifetime than those without a college degree, I believe the type of degree matters, especially after the recent financial crisis. The purpose of a degree is not studying a fun subject or partying for several years. The purpose of a degree is to give the graduate an advantage in obtaining employment after the degree has been earned. Some degrees are naturally more in demand than others. 

Maximizing A Degree's Earning Potential

A photography degree might seem like a great choice to someone with significant aptitude in that area, but it is unlikely to guarantee the graduate an ability to earn an income, at least not at first. It will take the graduate time to purchase the right equipment, build a portfolio and develop clientele. What stands out to me is that a photographer is typically self-employed, and a self-employed individual could benefit from a business degree. If the student wanting to pursue photography would also obtain a dual degree in business, they would be maximizing their earning potential.

The student would have a much better chance at finding employment after graduation because of the business degree. The earnings from that employment would allow him to pay off any student loans and dedicate some funds to building his photography business on the side until he was able to live off of that income exclusively. It would also give him the knowledge to know how to run a business - handle permits he might need for a shoot, lease office space, obtain insurance for his equipment, etc. Knowing how to manage such details would help him not let his photography business get sunk over small but important details. He would always have the business degree to fall back on during hard times, but it would complement his photography passion by allowing him to develop an effective strategy to pursue it and make it a profitable career.

Passion Tempered by Common Sense

I'm not saying that someone shouldn't follow their passions in life. What I am saying is that today's high school graduates entering college should look at their degree options objectively and make degree decisions that will create a solid foundation for their future, no matter what that future might bring. By tempering that passion with a little common sense, a person can protect themselves from becoming another drifting college graduate unable to find decent employment, which could also prevent him from pursuing his passion.

Looking back on my own decisions, I wish I had finished my bachelors degree when I was in my early 20s. Being a single parent would not have been so difficult financially if I had earned that degree instead of putting it off. 

Link:

http://thecelebritycafe.com/feature/2013/08/personal-finance-blogger-hits-nerve-about-paying-children-s-college-education