College: A Sound Investment Essay

Cost is always about loss. When we consider opportunity cost, we consider what losses an opportunity brings us. One of the most enduring â€Å"opportunities† individuals receive is education. Society is immersed in messages about the benefits of education, but what about the costs? Any important decision should involve a sound cost-benefit analysis. Do the benefits outweigh the costs? This is the basic question of decision-making—of investment. Is college worth the investment? In consideration of this question, I would first need an estimate of the cost of college. First, I would tally the basic, overt costs. Tuition, books, room and board, travel expenses (for commuters): each of these components would subtracts from my finances. Suppose all of these expenses add up to roughly fifteen thousand dollars per year. Now, if I subtracted around five thousand dollars for scholarship, I would be left with a net debt of ten thousand dollars per year. At the end of my college experience, the cost of college would be around forty thousand dollars, correct? Incorrect—I have failed to consider the â€Å"hidden† costs of college. Namely, I have not aken into account the wages I have lost because I chose to be in the classroom rather than in the workforce. With a high school education, I might have expected a job that pays perhaps fifteen thousand dollars a year. Four years of this wage would leave me with a gross profit of sixty thousand dollars. So, what is my overall cost of college now?†¦ 100,000 dollars. What was I thinking? For one, I was thinking that without a higher education I could have expected my wages to rise by at most five thousand dollars, if I was being generous. No advancement in my nowledge or skill sets would have corresponded with no job growth opportunities and thus no significant income growth. Therefore, short of winning the lottery, my wages would remain relatively stagnant. I was also thinking that with a college degree as my backing, I would have the leverage to position myself into an entry-level job that would pay at the very minimum twenty-thousand to twenty-five thousand dollars. Further, I was thinking that entry-level positions lead to advancement. Entry-level positions lead to opportunity. With a decade of strong ork ethic, I have a respectable chance of cracking the forty to fifty thousand dollar barrier, if not more. With just two years of such a salary, I would compensate for the one hundred thousand dollar investment I made to ensure my career. I was thinking that I would much rather retire with a net worth of in the hundreds of thousands rather than the prospect of a retirement where the number 100,000 is still as magical and elusive as that winning lottery number. Most important, I was thinking that I would gladly pay the â€Å"opportunity cost† today to realize the â€Å"opportunity†Ã¢â‚¬â€for myself and for my future family—tomorrow.