To go to University or not to go, that is the question millions of soon to be high school graduates ask themselves each day. James Li gave insight into this question in his blog post Opportunity Cost. Well he did a good job analyzing and finding information in order to
advise both students and parents in this decision, however he only looks at how much a Harvard grad would make in the first 10 years of his career, which would leave the Harvard grad at the approximate age of 32 and the average American Citizen works till they are approximately 67. This gives the Harvard grad 45 years of working at at least $75,504 as they will probably be promoted to better paid positions.
Therefore the Harvard Grad would make (75,504 x 45)=$3,397,680
Meanwhile the average worker who doesn’t go to college will make 42,000 a year for 49 years assuming he starts working at 18 and retires at age 67.
Therefore the worker who didn’t go to college would make (42,000 x 49)=$2,058,000
That is a difference of (3,397.680-2,058,000-335,040)= $1,004,640
335,040= opportunity cost of University
The Harvard grad will make at least $1,004,640 more than the worker who doesn’t go to University, which to me sounds like a good enough reason to get a University Education.