There are two perspectives of the relationship between education and income that I want to talk about in this blog post. I personally believe there is a common misconception in the relationship between education and income. A common belief is that education will help you get a great paying job.  And I think that may have been truer in the past. However, in this day and age there is absolutely no guarantee that getting a good education is equal to having a higher income. At the same time I do believe college education gives a person the confidence they need to go out and persevere in the world.

A person with a high IQ does not necessarily have to go to college to maker their fortune. There are notable people who reached fame and notoriety without having a college education. Bill Gates, founder of Microsoft, is one of these people. It makes you wonder how many young people who struggled in college could have been tremendously successful if someone had recognized their intelligence and helped them find a path that would have allowed them, or given them, confidence enough to pursue their dreams, but that’s another story altogether.

Kids who get out of high school and start working immediately are obviously making more money than college students. Once a student graduates from college they may not have as much net worth as a high school student who got a job right after graduation, however this net worth may be low because of the student loans they need to pay off. After the loans are paid off and they continue on their career they have more potential to make higher income that a high school student with no college education. Therefore, while initially it may seem there is no relationship between education and income, in the long run the relationship becomes very clear.

With the rising cost of college education and the fluctuating economy today, many people are wondering how they can afford to send their child to college. But most of these people are thinking under the false assumption that sending their child to an expensive college or university will guarantee they are successful in life. While it is true that a college education is usually not a bad thing and can open up a person’s mind, college may not be the best option for kids who are just getting out of high school.

I know this is a new way of thinking and whenever I bring it up to people I seem to shock them. What they usually do not realize is that I used to teach at a college. In fact I taught college freshman, and I have never seen so much wasted money in my life. Most of the time these kids did not even want to be in college, they were only there because it’s what the parents expected of them. So teaching college freshman has given me a different perspective on the relationship between education and income.

Because of my experience teaching at the college level, I often counsel parents to encourage their graduating high school student to attend a local junior college. Spending time at a local junior college will give them a chance to figure out what it is they really want to do in life.

It is better to figure this out at a junior college instead of going to a major university which can be very expensive and then changing their minds about what they want to study or even if they want to continue their education. Most universities and colleges will accept credits from junior colleges. This is a much more cost effective way of getting your child through college.

So while there is definitely a relationship between education and income, it does not mean that you have to take the traditional route of going to a four year school right after high school, you can go to a junior college for a couple of years at transfer to a larger school.