Did you hear about the big college scandal involving well-known celebrities? Here’s the news story from NPR:
It quickly went viral because it hits on several hot-button issues:
- Rich vs. average-income families
- Student debt
- Merit-based success vs. paying your way
- New economy vs. the old economy
There is one specific angle to this story that annoys me.
Lori Loughlin’s daughter is already making money on YouTube. She has millions of followers. She has fashion sponsorships. She wanted to pursue it full-time.
Instead, Lori paid $500,000 to bribe her daughters into college against their will. It leads me to ask one question:
Why not invest that money in her daughter’s business to grow her income?
It makes zero sense.
Now, the mom could go to jail and the daughter is furious at her parents.
Think about this unhealthy obsession we have with college as a society. It’s not just Lori Loughlin, parents across the country pressure their kids in much the same way.
Instinctively, we know the cost is too high. It continues to increase at a much higher rate than inflation.
Ask anyone 5 years out of college: “How much of what you learned do you still use today?”
My bet is 80% of the people would say they forget 80% of it.
Still, the average family believes there are no alternatives to create a great life besides spending $45,000/year for a prestigious university.
I’m not saying there is no value to a college education. I just know I wasn’t ready to make a career decision at 18 years old.
Online video is changing education, how we connect, and the way business is done.
You can learn anything online today. To me, the new path of education is investing all your time, money and energy into your hobbies and passions. If you lead the curriculum, you’ll take ownership for digesting the material.
Yet people are more afraid to pull the trigger on a $20 book than a $100,000 student loan.
Let’s say you’ve already gone to college, you have debt, AND you don’t like your job.
You are prone to the sunk cost fallacy. The more money you’ve spent going in a certain direction, the more you feel like you MUST continue down that path. This can prevent you from following your true passions…
Don’t let it happen!
Use this story as a way to learn how to make the best decisions for yourself, not what society dictates you “should” do.