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For any purchase I like to ask people, "Is this an investment, or is it a hobby?". It applies to anything from houses (usually a decent investment) to cars (usu

For any purchase I like to ask people, "Is this an investment, or is it a hobby?". It applies to anything from houses (usually a decent investment) to cars (usually a poor investment but often needed as part of an investment in a career to commute), and even a college education. If you're independently wealthy [1] or your family will take care of you, viewing college expenses as an enrichment experience (akin to a trip to Europe) is just fine. If you see it as an investment with future earning returns, then its cost efficacy must be examined rigorously. [1] I know a HS dropout programmer (a BSD guy) who's now independently wealthy and studying math in France as a hobby.

yitchelle 11y ago
How would you classify taxes? Of course, I am being a little sarcastic. Another category is unavoidable spending, just like paying taxes. you don't want to do it, and your return from it is debatable in some circumstances but you have to do it due to legalities.
- hkmurakami 11y ago
  If it's absolutely unavoidable (ex: water bills for drinking water, base level housing cost, etc), then I consider that to be the category of "investment" where you're valuing something for its present and future utility. You may be correct that taxes are of a separate category (though it affects decisions for both investment and consumption)
stdbrouw 11y ago
I think in Europe people would view higher education as both enrichment and an investment in your future. The issue they becomes how to calculate return on investment on something that's 20%, no wait 35%, or is it 30% a hobby and 80% or... hmm... an investment :-) I imagine you could always try to calculate the value of the enrichment too, but how would you know beforehand, and how would you compare this with enrichment opportunities outside of college? Definitely something people should be thinking about, but I don't think examining cost efficacy rigorously is as easy as you make it sound.
- hkmurakami 11y ago
  Absolutely. Not easy at all. In my case, 10 years after the fact, I look back and think that my college education has turned out to be 60% investment, 40% enrichment. My Masters degree on the other hand has been about 20% investment and 80% enrichment (unfortunately). I certainly didn't expect my advanced degree to be such a bad investment! ;)
superuser2 11y ago
>If you're independently wealthy [1] or your family will take care of you, viewing college expenses as an enrichment experience (akin to a trip to Europe) is just fine. On of the goals of the vast public higher education infrastructure that boomed in the 1960s was to bring that enrichment experience to everyone. And it was successful at this - participation in liberal arts majors was quite high until relatively recently. Harpers [0] has an excellent piece on the topic. [0] http://harpers.org/archive/2015/09/the-neoliberal-arts/ http://harpers.org/archive/2015/09/the-neoliberal-arts/
- hkmurakami 11y ago
  Wanted to message you but couldn't find a contact in your profile so I'll write it here. This was a wonderful read. Really appreciate you sharing it with us.
dalke 11y ago
There is another factor in your analysis. Education may have more than purely local advantages. That is, it may be a good investment for me to fund other people to get a college education, even if they regard it as a hobby. For examples: I may run a business producing collegiate sweaters, so want more people in college, I may enjoy telling bad puns about philosophers and am willing to pay for others to learn some philosophy so I don't have to explain myself all the time, and we as a cultural may be on a better footing if there are more people who understand the historical development of the US - even if that history education has little direct economic benefit to the person who received the education.
- hkmurakami 11y ago
  Very good point. Unfortunately we currently accomplish that through segregation, both self directed and otherwise. :(
gambiting 11y ago
How do you view it if you live in a country where all higher education is completely free, no matter if you study liberal arts or law?
- ovi256 11y ago
  Please don't forget about living costs (room and board for the years the degree will take - 3 for a licence, 5 for a masters), and opportunity costs (you could have worked full-time and advanced a career). Tuition being free only reduces by a fraction the total cost of a degree.

yitchelle 11y ago

How would you classify taxes? Of course, I am being a little sarcastic. Another category is unavoidable spending, just like paying taxes. you don't want to do it, and your return from it is debatable in some circumstances but you have to do it due to legalities.

hkmurakami 11y ago
If it's absolutely unavoidable (ex: water bills for drinking water, base level housing cost, etc), then I consider that to be the category of "investment" where you're valuing something for its present and future utility. You may be correct that taxes are of a separate category (though it affects decisions for both investment and consumption)

stdbrouw 11y ago

I think in Europe people would view higher education as both enrichment and an investment in your future. The issue they becomes how to calculate return on investment on something that's 20%, no wait 35%, or is it 30% a hobby and 80% or... hmm... an investment :-) I imagine you could always try to calculate the value of the enrichment too, but how would you know beforehand, and how would you compare this with enrichment opportunities outside of college? Definitely something people should be thinking about, but I don't think examining cost efficacy rigorously is as easy as you make it sound.

hkmurakami 11y ago
Absolutely. Not easy at all. In my case, 10 years after the fact, I look back and think that my college education has turned out to be 60% investment, 40% enrichment. My Masters degree on the other hand has been about 20% investment and 80% enrichment (unfortunately). I certainly didn't expect my advanced degree to be such a bad investment! ;)

superuser2 11y ago

>If you're independently wealthy [1] or your family will take care of you, viewing college expenses as an enrichment experience (akin to a trip to Europe) is just fine. On of the goals of the vast public higher education infrastructure that boomed in the 1960s was to bring that enrichment experience to everyone. And it was successful at this - participation in liberal arts majors was quite high until relatively recently. Harpers [0] has an excellent piece on the topic. [0] http://harpers.org/archive/2015/09/the-neoliberal-arts/ http://harpers.org/archive/2015/09/the-neoliberal-arts/

hkmurakami 11y ago
Wanted to message you but couldn't find a contact in your profile so I'll write it here. This was a wonderful read. Really appreciate you sharing it with us.

dalke 11y ago

There is another factor in your analysis. Education may have more than purely local advantages. That is, it may be a good investment for me to fund other people to get a college education, even if they regard it as a hobby. For examples: I may run a business producing collegiate sweaters, so want more people in college, I may enjoy telling bad puns about philosophers and am willing to pay for others to learn some philosophy so I don't have to explain myself all the time, and we as a cultural may be on a better footing if there are more people who understand the historical development of the US - even if that history education has little direct economic benefit to the person who received the education.

hkmurakami 11y ago
Very good point. Unfortunately we currently accomplish that through segregation, both self directed and otherwise. :(

gambiting 11y ago

How do you view it if you live in a country where all higher education is completely free, no matter if you study liberal arts or law?

ovi256 11y ago
Please don't forget about living costs (room and board for the years the degree will take - 3 for a licence, 5 for a masters), and opportunity costs (you could have worked full-time and advanced a career). Tuition being free only reduces by a fraction the total cost of a degree.