Financial Calculator for $12: Plan ahead for education

For Education

Educational impact:
  Salary Offers
  Education Costs

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BENEFITS OF CONTINUING EDUCATION

Overall, more Americans are going to college. In 2000, over 38% more men and 84% more women graduated from college than in 1980. The biggest rise over this period was among African-americans, with 94% more men and over 101% more women getting degrees. Still, Caucasians made up the vast majority of those getting their degrees.

But if the U.S. is really a service-driven economy where high school graduates are in demand, then why go to college? Because even if you are not going to be a doctor or a lawyer, you can still make nearly 32% more with a 2-year degree or up to 90% more with a 4-year degree than you can make with a high school diploma alone. Continuing education is especially beneficial to minorities. Figures show that in 1999, African-american women got the most benefit from an undergraduate education, with their salary offers growing 62.3% with a 2-year degree and 101.0% with a 4-year degree compared to just a high school education. So why are we telling you about this? Because you need to plan ahead for the significant costs associated with higher education.

With the cost of college increasing so quickly, can you still come out ahead? Yes, you can. The following numbers show that even though some fields are feeling the impact of an economic slowdown, higher education pays.

Salary Offers to Degree Candidates from 1998 to 2000

		Increase from 1998 v. 2000			Increase from the next lowest degree
Major		Bachelor's	Master's	Doctorate	Master's	Doctorate
Accounting		11.8%	9.2%	N/A	21.4%	N/A
Business Management		15.6%	-1.9%	N/A	59.8%	28.6%
Marketing		14.2%	-14.9%	N/A	56.0%	N/A
Chemistry		6.0%	24.9%	14.5%	36.9%	67.2%
Mathematics		15.4%	12.8%	15.0%	28.3%	46.3%
Physics		17.5%	-23.8%	2.0%	-9.5%	8.2%
Humanities		16.4%	N/A	N/A	N/A	N/A
Social Sciences		13.9%	N/A	N/A	N/A	N/A
Computer Sciences		16.9%	16.6%	15.0%	46.3%	36.5%
Engineering
	Civil	7.3%	7.2%	0.8%	26.2%	31.1%
	Chemical	8.4%	12.1%	9.3%	20.8%	40.3%
	Computer	14.4%	10.6%	20.6%	30.1%	50.6%
	Electrical	12.3%	13.6%	11.6%	40.5%	39.0%
	Mechanical	11.4%	10.0%	18.5%	29.9%	43.4%
	Nuclear	13.4%	44.1%	N/A	56.5%	N/A
	Petroleum	0.9%	-0.8%	N/A	0.9%	N/A
	Technology	1.8%	N/A	N/A	N/A	N/A

COSTS OF CONTINUING EDUCATION

From 1980 to 1998, the costs incurred by colleges and universities went up on average 4.9% per year. The table below shows the resulting increases for tuition, fees, room, and board.

Yearly Increases in Higher Education Costs: 1985 to 2000

	Tuition and Fees		Board		Room
Charges for	4 Year Colleges	Other 4 Year Schools	4 Year Colleges	Other 4 Year Schools	4 Year Colleges	Other 4 Year Schools
Public School	6.9%	7.0%	4.9%	4.2%	4.8%	5.0%
Private School	7.2%	6.6%	4.4%	4.7%	5.8%	5.6%

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Information based on data from the U.S. Census Bureau. Educational Attainment by Race and Sex, College Graduate or More: 1980 to 2000, Table 216; Earnings by Highest Degree Earned: 1999, Table 218; Salary Offers to Candidates for Degrees: 1998 to 2000, Table 283; Higher Education Price Indexes: 1970 to 1998, Table 274; Institutions of Higher Education Charges: 1985 to 2000, Table 278. Statistical Abstract of the United States, 2001

Disclaimer - Not Providing Accounting or Financial Services - Proactive Management, Inc. presents the material on this calculator as general information only. It is not offered as, and does not constitute, accounting advice or opinion, or financial advice or opinion. It should not serve as a substitute for advice from an accountant or financial advisor familiar with the facts of your specific situation. We are not an accounting or financial services firm and do not provide accounting, financial, or tax services or advice. We make no warranty, express or implied, concerning the accuracy or reliability of the content on this spreadsheet, on our website or on other websites to which we link.