Personal balance sheets matter
Thinking about your household as a company with a balance sheet is an excellent way many experts suggest framing big life decisions. Whether it’s the Brookings Institute or many financial planners, assessing how your assets (like houses, cars, and other tools for life) correspond with associated liabilities (insurance, taxes, operating expenses) is something to think about.
Higher education is a big up-front investment in an individual’s personal balance sheet, and comes with a very large price tag. The question, then, is whether the tens (or hundreds) of thousands of dollars one spends on a degree, or two, or three, makes sense in this day and age.
If you’re a parent looking to invest in your kid’s university education or a student looking to get a better handle on your school debt, College Avenue is here to help.
College Avenue is a financial services company specializing in private student loans and student loan refinancing. You can get flexible and customized loan solutions to help you finance higher education with ease and efficiency, with no hidden fees and competitive interest rates.
To find out more about their flexible loan options, simply complete their quick online application (it only takes a few minutes!) and be sure to take advantage of their tools and resources to help both parents and borrowers like you understand and manage student loans.
As Buffett says in his interview, whether you opt for university or technical training really depends on the individual, and the school one chooses to attend. And, he noted, “there’s a lot you can learn in those four years.” That’s the whole point, after all.
Start saving now
For those who want to invest in their kids’ education and future, saving money is crucial to avoid the crippling debt that student loans can create.
Whether you’re trying to save for your kid’s education or you’re trying to build up your own college fund, starting early can provide the best benefits over the long-term, thanks to compound interest.
There are many ways to put some hard-earned capital away for education expenses that are worth considering.
CDs (certificates of deposit) are a type of savings account that pay a fixed interest rate on cash you save for a set period of time, so you have the chance to earn high interest on your education savings.
With CD Valet — an online CD marketplace — users can shop and compare top certificate of deposit rates from various banks and credit unions nationwide. Their extensive database shows the most competitive rates without bias, daily rate updates, and earnings calculators which give consumers an array of free tools to help them find the right CD to meet their savings goals.
Another way to jumpstart your educatuion fund is with a high-interest savings account. You can check out our list of the Best High Yield Savings Accounts of 2024 to find some great savings options that earn you more than the national average of 0.4% APY.
Invest with your goals in mind
Managing your major investments in both career progression (and financial assets) is certainly an important piece of the puzzle.
While the average college graduate earns roughly 86% more over their lifetime compared to their peers who stopped at graduating high school, they are also much less likely to be unemployed, according to a recent study from the Foundation for Research on Equal Opportunity. Their research also shows that nearly half of all master’s degrees have a negative ROI.
Thus, while Warren Buffett did get his master’s degree (and it certainly looks like this decision paid off for him, the math is clearly different these days.
Instead of pursuing a six-figure degree, many who may choose to apprentice for a trade out of high school and start making $80,000 per year within six months may be better suited over the long-term, and may be much more easily able to save up for a down payment on a house, for example, and start investing.
The hope for college graduates is that the relatively higher salary one might earn over their lifetime will more than make up the difference, and they may end up in a better position over the long-term.
In either case, diversifying one’s personal balance sheet and investing in assets that can grow over time is important for every investor, at every stage of life. In order for investors to have a shot at making it into the top 10% of society (which owns around 93% of all equities according to recent estimates), investing in the stock market has proven to be an excellent tool to move up the economic ladder.
If you’re keen on expanding your investing knowledge, Motley Stock Advisor is a great place to start.
Stock Advisor is a subscription-based service that provides users with market insights and expert-stock picks, so you can take the guesswork out of investing.
Stock Advisor has a proven track record of beating the S&P 500 by more than four times. Their expert research uncovers under-the-radar companies, allowing investors to seize timely opportunities before they blow up.
