By Leslie Scorgie
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Paying for post-secondary and graduate education is challenging. I know first-hand how it feels to be slapped with a $10,000 bill for tuition, books, and supplies each year.
When you choose to hit the books for two, three, four, or five years, you forfeit immediate income-earning opportunities; you’re typically not working full time. So while some of your friends are bringing home a nice paycheque each month, you’re doing just the opposite: spending money on education.
An undergraduate degree in Canada costs, on average, between $30,000 to $50,000. Graduate and doctorate programs can cost upward of $70,000 to $100,000. Most graduates leave post-secondary with at least $20,000 to $30,000 in student debt.
So, the underlying question is, is it worth it? The answer is “Yes!” Getting an education is exceptionally valuable. I’m not just talking about college and university. I’m also talking about trade, technical and apprenticeship programs. Your long-term income-earning ability is anywhere from a few hundred thousand dollars to over a million dollars greater than a high school graduate’s[1].
Research has shown that education is an incredibly valuable asset and a big part of developing a strong personal brand. Educated people not only earn more money, but also enjoy a higher quality of life because they have more choices in terms of their career opportunities and lifestyle.
Statistics Canada conducted the National Graduate’s Survey based on 2006 census data. Over a 40 year period, college grads are expected to earn $200,000 more than a high school grad, a Bachelor’s degree holder is expected to earn $745,000 more and a post-bachelor degree holder will earn $1.2 million more than a high school grad. [2]
The US Department of Labour and Census Bureau conduced a study in 2004 that suggested that 75 per cent of future jobs will require some type of post-secondary education. Additionally, they found that jobs requiring a bachelor’s degree would grow twice as fast as national average for other occupations.
If you know you’re going to hit the books, try saving for school in advance. Tuck away regular amounts of money through automatic bank deductions into a Guaranteed Investment Certificate, money market mutual fund or high interest savings account. Each is low risk, earns stable returns and can be accessed when the time comes to pay your fees. To make this even more beneficial, save within your Tax Free Savings Account so that your money can grow tax free.
Also, consider working while you’re going to school. Check with your current employer to see if they will be able to accommodate your school schedule. If you’ve done good work, companies will often want to keep you on part-time or even allow you to work remotely from wherever you go to school. Second, check out if there are any part-time jobs on campus. The libraries, restaurants, stores, fitness centres, and so on need staff. Within your own faculty there may be opportunities to help with academic research or various studies, or you could become a teaching assistant. Third, if you’re studying a particular subject like engineering or education, look for student-friendly employment within your field of expertise. This is a great way to apply what you’re learning and have employers test out your skills. Fourth, don’t forget about entrepreneurial ideas. If you’ve got a special skill such as photography or fitness training, use it to make money.
I’d recommend applying for scholarships. Your effort combined with the right qualifications can result in thousands of dollars of free educational money. The registrar’s office or library on your campus will have information on scholarships, bursaries, and income assistance.
Additionally, apply for government student loans. Student loans must be repaid in regular installments once you graduate. The interest rates are competitive and you can write off the interest after graduation. Student loans often have associated grants and bursaries which you can apply for. Visit Canada’s student loan website for general student loan information www.canlearn.ca. If you don’t qualify for scholarships, student loans, grants and bursaries, pay for school through a student line of credit. Lines of credit are available through most financial institutions and have highly competitive interest rates with flexible repayment plans.
Yes, there are very successful people in North America who don’t have post-secondary education. But this phenomenon is becoming less common because the corporate cultural norm has changed: education is critical.
[1] http://www.millenniumscholarships.ca/images/Publications/090623_POK1_backgrounder_EN.pdf
[2] http://www.millenniumscholarships.ca/images/Publications/090623_POK1_backgrounder_EN.pdf
Category: Money, Rich by Thirty
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