Gen Z Says College Is A Waste Of Money (They're Wrong)

Summary

The video explores the diminishing value of a college degree in the job market, as employers prioritize skills and experience over education. With a 91% agreement that colleges aren't equipping graduates with relevant skills, the video delves into the historical worth of a degree, comparing costs and salaries from 1980 to 2024. It discusses the prevalence of degrees, the importance of choosing a specialized major, and the significant return on investment (ROI) for certain fields like engineering and computer science. The video also highlights non-financial benefits of college, such as personal growth and networking, concluding that college is still valuable if one chooses wisely and manages student debt.

Takeaways

• 📚 The value of a college degree is increasingly being questioned as employers seek skills and experience over formal education.
• 🏢 A study reveals that 91% of employers do not believe college graduates possess the relevant skills needed for the job market.
• 📊 In 1980, the cost of a four-year college education was $10,800, with an average starting salary for a bachelor's degree holder at $15,200, giving a ratio of 1.4.
• 📈 By 2024, the cost of college education has significantly increased, making the return on investment (ROI) for a degree much lower compared to the 1980s.
• 🎓 The prevalence of college degrees has risen dramatically, with a 90% increase in four-year college graduates from 2000 to 2022, leading to increased competition.
• 💼 Having a college degree is no longer a distinguishing factor, as it has become common, reducing its unique value in the job market.
• 💰 Earning potential varies greatly depending on the chosen major, with specialized fields like engineering and computer science offering higher ROI.
• 📈 Data from the Bureau of Labor Statistics shows that higher education levels generally correlate with higher wages.
• 📉 A comprehensive research report analyzed over 30,000 Bachelor degrees, finding significant variation in ROI, with some fields offering returns of over a million dollars.
• 💵 The study suggests that choosing the right major is crucial for a positive ROI from a college degree, with some programs not delivering a financial return at all.

Q & A

What is the main argument Jenz presents about the value of a college degree?

Jenz argues that the value of a college degree has decreased over time, with employers placing more emphasis on skills and experience rather than formal education. A new study shows that employers do not value college degrees as much as they used to, and there is a perception that colleges are not graduating students with relevant skills.

How does Jenz compare the cost of college in 1980 to today?

In 1980, the total cost of a four-year college education was approximately $10,800, while in 2024, the annual cost is significantly higher, with tuition alone being around $28,841. This indicates that the cost of education has increased substantially over the years.

What was the ratio of starting salary to college cost in 1980, and how does Jenz interpret it?

The ratio of starting salary to college cost in 1980 was 1.4, calculated by dividing the average starting salary of $15,200 by the total cost of college tuition of $10,800. Jenz uses this ratio as a simple comparison to show that the return on investment for a college degree was higher in 1980 than it is today.

Why does Jenz believe that having a college degree is not as special as it once was?

Jenz points out that college degrees have become more prevalent, with a significant increase in the number of graduates from 2000 to 2022. This increase in supply has led to more competition in the job market, reducing the distinctiveness and perceived value of a college degree.

What does Jenz suggest about the relationship between the choice of major and the return on investment (ROI) of a college degree?

Jenz suggests that the choice of major has a significant impact on the ROI of a college degree. Specialized fields such as engineering, computer science, nursing, and economics can produce higher returns, while more general majors may not be as financially beneficial.

What does Jenz say about the lifetime earning potential of someone with a college degree compared to a high school diploma?

Jenz refers to data showing that individuals with a college degree can expect to earn significantly more over their lifetime compared to those with only a high school diploma. According to the Bureau of Labor Statistics, as of 2019, someone with a bachelor's degree earns close to $30-$33 per hour, while someone with a high school diploma earns around $20 per hour.

How does Jenz explain the concept of being 'irreplaceable' in the job market?

Jenz uses the example of professional athletes like Steph Curry to illustrate the concept of being 'irreplaceable'. The more specialized and unique one's skills are, the more valuable they become in the job market, leading to higher earning potential.

What does Jenz recommend for those who are unsure about the value of a college degree?

Jenz suggests considering attending a junior college for two years and then transferring to a public four-year institution to reduce the financial burden. Additionally, choosing a major that aligns with one's career goals and has a proven ROI can help justify the investment in a college degree.

What are some of the intangible benefits of college that Jenz discusses?

Jenz mentions several intangible benefits of college, including the opportunity to mature and develop cognitive and self-discipline skills, the chance to explore different fields and interests, and the networking opportunities that can lead to career and personal connections.

What conclusion does Jenz draw about the value of college in today's context?

Jenz concludes that college is still worth it, especially if one chooses a major with a high ROI, graduates without excessive student debt, and uses their degree in their field. However, the value of a college degree is subjective and can vary greatly depending on the individual's circumstances and choices.