This is a logical route with lesson number two, college is worth it. Remember our dilemma about whether or not to pursue college. We argue in this lesson that going to college is worth it. One justification is that college graduates experience lower unemployment. four year college graduates continue to experience far less unemployment and earn higher salaries than their counterparts with only a high school education. The second justification is that college grads earn higher salaries.
This fact is well documented in 2013. Americans with four year college degrees made 98% more an hour on average than people without a degree. The US Department of Education said that Over the course of a lifetime, the average worker with a bachelor's degree will earn approximately $1 million more than a worker without a post secondary education. The Federal Reserve Bank of New York went even better studying college grads and the returns for over 40 years. It concluded that since the 1970s, the benefits of both a bachelor's degree and an associates degree still tend to outweigh the costs with both degrees earning a return of about 15% over the past decade. The third reason is common sense.
We see this trend everyday around us with automation and outsourcing taking many traditional jobs away from us, College is a must to meet changing employment trends. The Bureau of Labor Statistics estimates that there are 216 occupations, which will show some kind of job growth in the next 10 years. Of these 162 occupations, that is 75% of all good jobs require some Kind of post secondary credential meaning one has to earn a college degree of those 162 occupations. 91 careers will require at least a bachelor's degree and 47 will require a master's degree or PhD. This trend is playing out even in our factories, which historically have been friendly to people with just a high school degree. In our factories.
There is a computer about every 20 or 30 feet says Eric Steele, who recently retired as president and chief executive of Siemens, USA, people on the plant floor need to be much more skilled than they were in the past. There are no jobs for high school graduates at Siemens today. Over 95% of jobs created during the recovery have gone to workers with at least some college education while those with a high school diploma or less are being Behind of the 25 fastest growing occupations in the greater Dallas area, only one accepts applicants with some college and no degree. All of this is well summarized by the US Department of Education. It says a post secondary credential has never been more important in today's economy. Higher Education is no longer a luxury for the privileged few but a necessity for individual economic opportunity and America's competitiveness in the global economy.
At a time when jobs can go anywhere in the world, skills and education will determine success for individuals and for nations. As a result, college education remains the best investment a student can make in his or her future. So who is right, the college naysayers or the college advocates? Our conclusion is that on balance colleges a great idea if the return on investment is strong. College is definitely about pursuing one's interests and expanding intellectual curiosity. But we must not forget that there is a real measurable price tag to the college experience.
Students need to consider college the same way as they would any other investment like buying shares of a company stock, a car or a whole families need to carefully analyze what they're likely to get for what they put in. That is, they need to estimate their financial return on investment. In addition to the emotional benefits that a college degree provides. ROI is an important focus of this course. It is the basis of college planning. It is the basis of college financial planning if college costs too much and or returns too little.
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