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A University Degree is Worth $830,000 More Than a High School Diploma

A lot has been written lately about university graduates not being able to get jobs in their field and struggling with minimum wage jobs, or no jobs at all. Many people have been left scratching their heads, wondering if it’s really worth spending time and money pursuing a post secondary education.
Finally someone has been able to quantify the value of a college education versus a high school diploma. According to the Federal Reserve a college education is worth $830,000 more than a high school diploma. The report states, “Although other individual factors might affect the net value of a college education, earning a degree clearly remains a good investment for most young people. Moreover, once that investment is paid off, the extra income from the college earnings premium continues as a net gain to workers with a college degree. If we conservatively assume that the annual premium stays around $28,650, which is the premium 20 years after high school graduation for graduates in the 1990s–2000s, and accrues until the Social Security normal retirement age of 67, the college graduate would have made about $830,800 more than the high school graduate. These extra earnings can be spent, saved, or reinvested to pay for the college tuition of the graduate’s children.”

In Canada the Association of Universities and Colleges of Canada came to a similar conclusion. Paul Davidson’s (president of the Association of Universities and Colleges of Canada) research, based on census information, found that people with a basic undergraduate degree make $1.4 million more over their lifetime than those with no post-secondary and $1 million more than college grads. Canadian Business reports that 75% of Canada’s best jobs are inaccessible to 77.3% of working age Canadians, those without a degree. The data shows a clear trend of more and more degree oriented career paths emerging, while prospects for working class jobs in manufacturing and construction diminish.

A post secondary education is still a worthy endeavor but the challenge now is how to acquire a university degree without crushing student debt. Insurance for Children has created Child Plan Education Achiever so that parents can help their children follow their dreams and achieve their goals in life. Contact us today to find out how.

Sample illustration of Child Plan™ Cash and Insurance Values

Based on a Monthly Deposit of $250 per month

Age Accumulated Cash Value Life Insurance Value
20 $82,568 (Education) $612,728
35 $177,953 (House) $1,115,297
45 $303,299 (Security) $1,115,297
65 $834,276 (Retirement) $1,666,824

Sample illustration is based on a monthly contribution of $8.32 a day/$250 a month for twenty years, starting when the child is less than 1 years old. Cash and life insurance values are based on the current dividend interest rate of 6% from a Canadian life insurance company. This example is strictly for illustrative purposes only, the annual dividend scale is not guaranteed and values may differ.

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*illustrations are reflective of the annual premium amount

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