Concerning yesterday's post
Broke Is Normal, "Independent" writes in the comments:
So students should go into professions they don't have a passion for, don't have a talent for, but can "afford" to go into? Or students should pick a profession that's "needed" and ignore their personal wants for their own lives?
I agree with 90 percent of what you write, but this post is the dumbest thing you've done in a long time.
Listen, I write a lot of dumb and obnoxious things, but I'm fairly passionate about the issue of teenagers and traditional college age students trying to figure out what they want to do with their lives before going $20,000 or $50,000 or $200,000 into debt.
I'm also annoyed that so many parents don't save a dime for junior's college. It really doesn't make any sense to me. Just because the parents might have had to take out loans decades ago doesn't mean they ought to saddle their children with the same burden. After all, a lot has changed in the past 25-30 years of higher education. The price of tuition at most in-state universities (and private colleges) has gone up at three to four times the rate of inflation for the last 15 years or so.
A lot has changed in the world of investing in the past 30 years. No-load mutual funds became easily available to the middle class by the late 1970s. UGMA/UTMA accounts hit in the late 1980s, although they were kind of a dumb idea for college accounts. Now we've got 529 plans. There are so many good options for investing these days, and the bull market of the past 25 years has reaped considerable rewards for those who managed to sock away some money every month into an S&P 500 Index fund.
But what I don't understand are parents who think the child should just follow their muse and go $20,000 to $30,000 in debt to get that political science degree over a six year timeframe. What positive lesson has been taught there?
I don't get this bogus slogan that
education is an investment. It's mostly BS. It's like the notion that
a diamond engagement ring should cost two months of the man's salary. If your engagement ring didn't cost two months of your salary, what are you? A slacker? Some kind of loser?
Apply the same thinking to education. Is it more noble to go
$100,000 into debt at UNI to become a social worker? If you're
$200,000 in the hole to become a lawyer and the best you can do is being a mouthpiece for the abortion industry in Iowa, why are you whining? Wasn't your education an
investment???
Is it any different, really, than the issue of
Ron Speltz, the clown near Cedar Rapids who exercised his company stock options but didn't sell them during the dot-con era because he stupidly thought the stock for an unprofitable company would go up and he'd save a few bucks on taxes? Now, suddenly, woe is him.
Or how about all those idiots who got into adjustable rate mortgages or 125% home equity loans when rates were at generational rock bottom levels? Now we're all supposed to feel sorry or somehow contribute to their mortgage payment because they're a bunch of morons who fell asleep in 10th grade math and who couldn't manage to handle an increase in their payments when rates changed? I'm sorry, but how much crap from Best Buy in in your house? How new are your SUVs? How was that vacation in Las Vegas?
Sorry about that. I got off course there, but perhaps you see my point. People do dumb things, and when it affects them financially they want somebody else to pick up the slack.
Industry basically tells you where the demands are. Agricultural sciences, medicine (human and livestock), engineering, and computers are the big shoes that need filling. Oh, I'm sure there are others. Trade skills are always needed: electrician, plumbing, HVAC, auto repair, etc. And you won't get rich with teaching, but if you don't go overboard with the student loans you could live a fairly OK middle class lifestyle.
Are these the kinds of professions being communicated to students in schools?
Do colleges and universities make an effort to not graduate so many people with almost totally unnecessary and worthless degrees? No, they don't.
Now, I agree that education shouldn't necessarily be focused on job-track situations. But let's be realistic here. I'm sure your kid loves watching American Idol, but they're not going to get on that show and become a glorified casino lounge singer. I'm sure your daughter loves to dance, but other than the
Lumberyard where in Iowa are you going to make an honest living from it? Your teenage son may be into politics and debate right now, but there's only so many seats in the Iowa Legislature and those positions pay rather poorly.
What's the solution? Well, there isn't really a solution. Nothing's perfect, and people should be able to change their minds halfway through college or 10 years after graduation, and do whatever they find to love that will pay the bills.
What I don't want to hear is people who have made stupid decisions being profiled in the media and expecting the taxpayers to pick up their tab, especially students like the one in the previous post who thought being $20,000 or more in debt when you graduate
is normal.