Price of studying

"The benefits of studying are limitless and priceless", that's what my parents used to say. Well, now you can put a value to it. In a certain sense.

Degree adds 160,000 pounds to lifetime earnings

LONDON - A university degree adds an average 160,000 pounds to an individual's lifetime earnings compared to people whose education finished at A-level, a study said on Wednesday.
Medical graduates can expect the largest boost to their income, earning an additional 340,000 pounds before tax over their career, said the report conducted for the vice-chancellors' body Universities UK.

Graduates in engineering, sciences and maths enjoy the next highest increase, of around 240,000 pounds, said the study, prepared by accountants PriceWaterhouseCoopers and consultancy London Economics.

Men from lower socio-economic groups who earn degrees gain the greatest financial benefit compared to men from similar backgrounds who do not attend university.

The study also found that the massive expansion in university students over the past 15 years had not eroded the so-called "graduate premium".

It said this was because demand for people with university qualifications had increased in line with the supply of graduates.

"Higher education is still clearly a worthwhile investment for the individual," said Universities UK Chief Executive Diana Warwick.

The study challenges concerns that rises in student fees in England have reduced the financial benefit of a degree.

It calculated that students were actually slightly better off, in part because they no longer have to pay tuition fees up front. (Reuters, 7 Feb)

While £160,000 (S$480,000) looks significant, an average worker's career lifespan approximates 35 to 40 years. On that note, having a degree adds less than £400 to one's monthly salary. Premium of having a degree?

Most people have degrees nowadays and, I think, no longer gives an edge over non-graduates. Ever since I started working in the banking market, I could see that it's MBAs that are a lot more valuable as the MBA graduates tend to get hired in Front Office (where the moolah is).

My MSc course at Imperial College costs £22,000 (excluding books). Investing that in a fixed deposit at 6% a year will get me £120,000. That means I only get a net £40k benefit over 35 years. Worth it? It has been more than 3 months since I stopped studying. Maybe it is time to dust off the covers and start "burning the midnight oil" again.