In today’s rapidly changing world, many people wonder if going to college is worth it. Whether it is because of selfmade entreupreneurs on the internet who quit school at the age of 15 or more sensible reasons like rising tuition fees, people just don’t really think a college degree is worth it anymore. While in 2013 70% of Americans considered a degree very important, only 5 years later in 2019 only 51% did, as a gallup poll found. However, when we consider the idea of human capital, it becomes clear that college can be a life-changing investment.
What is Human Capital?
Human capital basically refers to the total added value a person provides. This value consists of many different factors like skills, knowledge and experience, which in turn improve favourable metrics like productivity and quality. Keeping that in mind, certain things like going to the gym, learning to code or visiting college can be considered an investment in ourselves; building human capital not only improves job opportunities but also enhances critical thinking, problem-solving, and adaptability.
Why Visit College?
Attending college offers several advantages when it comes to building human capital. First, college provides a structured environment where you can learn specialized knowledge and gain valuable skills. Learning and teaching skills for yourself can prove difficult for some, and that’s completely normal. You should test your learning-abilities before considering whether you should go to college. Through classes, research projects, and extracurricular activities, you’ll develop a strong foundation for your future career.
Second, college is a great place to meet and connect with people who share your interests. You can build a network of friends, professors, and professionals in various fields. Networking is key for finding internships, job opportunities, and mentors who can guide you. Maybe you’ll even find a business-partner you can start your first venture with! These connections will support your personal and professional growth throughout your career.
Lastly, college campuses have top-notch facilities, libraries, and research centers. They offer access to resources that you likely wouldn’t be able to utilise on your own, enhancing your learning experience even further. You can engage in research, hands-on projects, and real-world learning opportunities. These experiences develop your problem-solving and critical thinking abilities, which are highly valued by employers.
Cost vs. Return
Considering the cost and return on investment is important, but understanding the value of human capital shows the broader benefits of a college education. In a study conducted in the real of the “Productivity and Prosperity Project”, it was found that the average ROI (return on investment) of a college degree was about 14% p.a. – that’s almost double the average annual return of the S&P 500! It should be noted that tuition and any other expenses are already included in that as well. So, at least objectively and not considering any special circumstances, college is definately worth the money.
Ultimately, the decision to attend college depends on your personal circumstances and career goals. While there is no denying that there are other paths to success, college is generally the safer road to become wealthy. It equips you with the skills, knowledge, and experiences needed to thrive in today’s competitive job market. And rember – the true value of a college education also extends beyond immediate financial gains. Even keeping potentially in the long term profitable connections aside, you will never forget the time at your college. You will find new friends and have lots of fun. College wasn’t the best time of most people’s lives for nothing!