Is Generation Y wasting their time, going to college and occupying Wall Street?
This was previously published on Student Loan CPA.
From a Generation Y finance/career perspective, Occupy Wall Street is objectively definable as what happens when the smartest people in the world let someone else think for them. What I am about to tell you can change your life if you open up your mind to it; it has definitely changed mine.
[FYI this is not a political article, so please don’t engage me on that level.]
What happened?
Some research says we are dumb.
To put it simply and politely, the world changed right under our noses. To be blunt, the smartest people on the planet completely missed the most dramatic changes the world has seen in centuries. Look it up, and you’ll find that every generation is smarter than the previous—this is a fact. Each succeeding generation has access to more knowledge and technology, and faces more global competition because talent is more mobile. Generation Y is supposed to be really smart because of the internet; we have access to so much more information, but clearly we spend almost all of it on bloggers like Perez Hilton and Nik Richie.
Mostly, we let our parents, grandparents, aunts, uncles, teachers, professors, etc direct us into career and educational choices that worked great 20-40 years ago. They either tell us what [in retrospect] worked for the most successful peers they have (usually “go to college”), or they tell us what they wish they did (usually “go to college”). It never dawns on us that college might not be good for us individually if everybody is doing it!
Even today we get statistics about how people who went to college make more over a lifetime than those who didn’t—but we never ask who was surveyed to reach that conclusion. How many people under 30? Probably none because they’d have to use people who have worked for a long period already. What decisions did those people make after college? We seem to think that by age 22, the most important driver of lifetime income has taken place … how smart does that sound now?
Salary is one thing, but what about standard of living? Did they factor in student loans? Probably not. Thirty years ago, college was dirt cheap and today’s “low-wage” labor jobs paid enough for people to be self-supporting without working more than part-time. This is no longer true, of course. Thirty years ago, most middle class families could pay out of pocket for their children’s education … not anymore. The house we thought was a mansion turns out to have been built on a wobbly, rotten foundation. Education is no longer the magic bullet … I use college as an example, because even President Obama talks about a college education like the pill that cures all financial ills … which it no longer is.
The generation of instant messaging and video conferencing never realized that even doctors (stereotypically well paid) can serve patients across borders with the same technology. In fact today, companies like GE (don’t quote me on this one) are working on technologies that will allow doctors to serve remote regions. In my opinion, these same technologies will be used so that highly qualified doctors in regions of lower medical cost like Europe & Asia can remotely serve us. Do you need any more examples? The most “informed” generation in the world continues to close its eyes to the continuous devaluation of the college degree. Maybe we are just dumb?
It is therefore my opinion that Generation Y Occupiers are people who lacked (or ignored) relevant, competitive financial/career information. Someone told them that if they did ABC they would get XYZ, but that information was severely outdated. Most of us desperately rely on our careers as a source of income, and our education as a primer for that. Let’s open our eyes before it’s too late.
Now that you know, what will you do about your situation? What are your own thoughts?
Read more Money advice and Quarter-Life Crisis stories on The Good Life.
Images courtesy of the author
Articles like these frustrate me. We all can agree on a surface level that a college degree may not be worth the giant price tag it comes with, but until employers around the country understand that too, we’re stuck. I’m quite young for having worked so long in my industry, but I’m still hitting a pay ceiling because I don’t have that piece of paper. I realize some people get good breaks and can get along just fine without one but not all of us are like that (and the general masses are not). So, I see your “college degrees… Read more »
Thanks so much for your comment. That’s an interesting question. My answer is as follows: 1. Accept the possibility that your degree may just barely keep you out of the poorhouse. That is always a possibility since it is not really “designed” to make you rich through employment. 2. Learn to sell your knowledge to the average person. This is hard, but very empowering. When I began consulting and tax work I felt how good it is to know what people want, and how to give it to them. If you’re a liberal arts major, help people write essays (college,… Read more »
Albert, you rock!
I appreciate you not responding with some as overarching as, “Find something you love!” Which is still good advice, but not very practical for people trapped in this cycle.
I’ll definitely read your other article and will save your response for further investigation!
Thank you!
You’re welcome.
Instead of saying “find something you love”. I would say, rediscover why you love your major in the first place. You will achieve great financial rewards where your “hedgehog” lives. (See http://www.thefrugalpreneur.com/2012/05/14/preneur-iview-albert-okagbue-on-the-secret-to-picking-a-great-business/)
Good luck. If you need any additional help, contact me via http://www.studentloancpa.com/about-me/.
Also consider reading my latest blog “The Final Word on College” : http://www.studentloancpa.com/2012/09/24/final-word-college/
I just wanted to say that I hope the million dollar myth will change. The figures that people come up with are all over the place. If you factor in things like the 5-6 yrs not working, inflation, etc its actually more like $150,000 to $500,000 according to some. Also, people who earn more may have different personality traits.
Dear Alice. College as an investment might be overrated if you overspend on it. Check out this article:
http://finance.yahoo.com/blogs/daily-ticker/forget-harvard-4-degree-more-plumber-long-run-20110318-063704-224.html
I completely agree we should think for ourselves whether a college education is best for us & not rely on what our parents did or told us. I strongly believe if you have a gift for something, whether it be washing dishes or being a tech wiz, you will be very successful. That said, I’m very grateful for my college education. I started college not knowing what I wanted to do with my life (2 degrees and 4yrs later i’d probably argue I still don’t) but I like where I am in life and had it not been for college… Read more »
“For someone like a Mark Zuckerberg or any other entrepreneur or artist that has a passion & a gift, I agree, college is useless.”
Very well said PN! My fear is that many “Zuckerberg” types defaulted to college – because Daddy said so.
What are some good blue collar jobs for women? I have a masters degree and have mostly wished that I didn’t go to college at all. I have about $50,000 in student loan debt, and my degree is not paying for itself. I wish I would have just entered the workforce and worked my way up after high school instead of going to college. In my experience looking and applying for jobs, past work experience is much more valued than education.
@ Erica B. I agree that past work experience is much more valued than education, however I don’t think you should give up without a fight. $50K is not much. It feels like a lot, but it’s really not. It’s a BMW or Mercedes and that means that at 8%, you can pay it off with $606 per month over 10 years. Sounds like a lot, but it’s all just numbers. The question is HOW.
If you would like some help, contact me via the information here http://www.studentloancpa.com/about-me/
That said, Blue collar jobs have to be more and more open to women. Look for jobs that are indoors, and don’t involve too much lifting. Working for UPS or FEDEX are examples.
Look for jobs being done by men who aren’t particularly big or tough, and chances are ANY woman can do them. I’m not saying that women can’t do men’s jobs…don’t want to go down that road…. 😉
Albert, your position makes great sense if you assume the only reason to pursue an education is to get a good job and make money. I believe one of the reasons our country is in such sad shape is due to the lack of education among Americans in areas like economics, political science and government and sociology. I think education is important to develop critical thinking abilities which are very important to live a full and empowered life.
Ah…Ed that is an interesting comment. I would say that the purpose of education is NOT to make money. Some education makes money, some doesn’t. All education EDUCATES however, and the data is clear: people don’t go to school for education. The full and empowered life you mention is probably more common among uneducated literate people if you ask me. Seriously, how many people do you know that majored in XYZ that can talk about it outside of work? How many of your classmates were genuinely interested in LEARNING as opposed to just making an A – which can be… Read more »
This seems to be North American centric. Not quite accurate in Europe. interesting read and thanks for sharing your thoughts.
The point of higher education isn’t necessarily just a job/career. The point is to be more educated, be more scientifically/numerically/historically literate. Some people (such as myself) have no real other option than college. With my aptitudes (and/or lack thereof) education was/remains my only real path. I graduated right into the middle of some of the worst of the recession (2009), so after a year of failing to get a job that would support me in any capacity I went back to college and worked my way into a MS Stats program. I needed a lot of other undergraduate classes that… Read more »
“The point of higher education isn’t necessarily just a job/career.” – I agree. But that’s precisely why it won’t always work for that reason. If something doesn’t always serve its own purpose, then education cannot always serve a purpose that it wasn’t necessarily meant to serve. Frankly, your views reflect why I myself have both a degree, masters, and a professional license. I think you misunderstand me completely – and I say so based on your detailed description of your situation. All I am saying in the article is that folks who expected an education to provide a career should… Read more »
“… This article is itself a rejection of the powerlessness that the Occupy Movement implies. I reject the notion of grown-ups who blame their problems on other people rather than react and take action. I reject the notion of grown-ups who make decisions almost entirely based on what other grown-ups think they should do…” If I am understanding this correctly, there is a good chance that you are making the fundamental attribution error. The people in the occupy movement are reacting to circumstances outside of their control. People can’t control the economy. People can’t always control their circumstances. But as… Read more »
“The people in the occupy movement are reacting to circumstances outside of their control. People can’t control the economy. People can’t always control their circumstances. But as the more enduring findings from social psychology tell us, the environment is a large contributor to one’s actions.” Large contributor, but not “largest” or “only” contributor. Is the cup half empty or will you drink it? If it’s outside their control, then why would protesting be an appropriate reaction? Please explain to me how this works, because I’m thoroughly confused. It’s their fault how they react – period. It’s their choice. There’s a… Read more »
@Psy
“The point of higher education isn’t necessarily just a job/career. The point is to be more educated, be more scientifically/numerically/historically literate. Some people (such as myself) have no real other option than college. With my aptitudes (and/or lack thereof) education was/remains my only real path.”
But someone could be more educated by reading books, googling, joining online forums, etc. Unless someone else is pay the bill, I would consider it very unwise to go college just to be more educated. Some cities offer quickie courses at community centers.
The thing about college is that if everyone does it and is great in their field, law of supply and demand says that available positions will be scarce. I go to college to learn things I enjoy learning, not to get a degree, because that doesn’t guarantee a successful career. Look at Steve Jobs, he never finished college (gods rest his soul). I have ideas and I have vision, and while they were shaped in the environment I matured in, they are new and radical and not going to be accepted by the mainstream. So I am going to go… Read more »
“I go to college to learn things I enjoy learning, not to get a degree, because that doesn’t guarantee a successful career.” I think right what you said there proves your first statement wrong. EVERYONE should have the opportunity to go to college to learn things they enjoy. People are pressured to MAKE something of their college educations by society because they just spent a fortune getting that education. Instead, if people went to college for free (or at least had the option to) THEN the “straight and narrow” career choice becomes…less straight and narrow. They are now equipped with… Read more »
Alessio – I guess that’s one way to look at it. Another way would be to say that getting a college education is like buying a rolls royce. If you want to learn something, you can go to the library and get books for free. You can join with others and learn it. But if you insist on learning it from people that have Masters Degrees, Ph.D’s, and are tenured, then you should pay. Universities are the most expensive way to learn some of the simple things they teach. I previously wrote that College Is For Rich People – you… Read more »
Interesting to see education that way. But if that’s true, why is education free at all? Why are there public high schools? And that idea may have been a solution for the past, but instead we have to look at where we are today: More and more kids are trying to get to college, no matter what the cost. By making a college education free, you eliminate so many social problems. How many times have we heard the story of a student getting into college because their dad is someone important? Getting into University would be “merit” based and not… Read more »
I honestly can’t say I have issues with your proposal. It should definitely be considered.
I do think however that as society is today, the reason for free high school is not applicable to free college. For one thing, high school is a minimum standard. The Chevrolet v.s. Mercedes analogy comes in again. It’s all about priorities. In any economy or society, I think people have to take care of themselves. Right now I think employment prospects were an after-thought for people until the economy crashed.
Alessio, Most places have libraries that are “free.” You can go there. I guess I dont understand the emphasis on college. If I want to learn something, I read. If I cant get it alone, I read some more and join an online forum. If I really wanted to go to a class I would go to a low cost course at a community center. Instead of throwing more money at the problem I have a different idea. How about take the federal money out? Universities will have to drop prices. Sure quite a few will go out of business.… Read more »
I’m with you 100% Jean. I don’t really think people value education anymore. The data is clear. College students graduate without ever writing a 20 page paper. They barely study. They’re not getting “educated”. Not really.
Well, of course a lot of people don’t go to college for the education. If someone wanted to learn, there are libraries, Amazon sells many books dirt cheap, and there is the internet. A lot of people go to school for the certification. Point blank you can learn on your own or with a mentor for far cheaper and and probably faster than you can at a university, BUT you dont get the certificate.
Yes Alice. But I would argue that the certificate is meant to imply the education that a lot of people aren’t getting. I would argue that the percentage of XYZ majors who don’t study are partly to blame for the overall devaluation of that major over time. What do you think?
@Albert,
I can agree to some extent, but I would also say the sheer numbers of people getting degrees devalues the major.
If everyone has a BAs and Alice gets a BA, Alice doesnt stand out anymore. Now Alice needs a Masters of PhD to stand out. It used to be that having a high school diploma was considered the gateway to success.
True true Alice. I might even go further to say that the Masters and PhD are devalued too by the sheer number of people getting them. Universities are everywhere – and online!!! Also, I fear that getting an advanced degree doesn’t so much make a person stand out, as it takes them out of one pool of competition into the next. For example, I’m a CPA with a degree and masters in Accounting. If you go to Monster.com and look for jobs requiring all three, most of them will be for people with more experience than me. So while some… Read more »
Albert,
Thats a valid concern. My mom is a college grad who gets rejected for jobs on the basis of being “overqualified.”
The pink elephant in the room is that sometimes college grads are not the best employees but want the best jobs.
Great article.
So many thoughts on this topic. Basically, I feel that if you want to go the college route, you have to go the Masters route as well, because just a B.A. isn’t going to get you anywhere anymore (unless you want to be a teacher, especially Math and Science). Otherwise, you might as well start getting experience out of High School for what you’re passionate about doing.
Thanks Alessio. Very actionable points.
Good thoughts! The internet information age has been an eye-opener for for many old school businesses; traditional news print , video stores, music industry, big box retailers to name a few. Same will happen for the old school college education. As you implied, I can Google anything covered in college for free so why pay for it. The stuff I learned in college many years ago wouldn’t fill a small notebook (and I’m not talking Apple Notebook). On the other hand, which would you rather have, a college diploma or Apple notebook with high speed internet?
On the other hand, which would you rather have, a college diploma or Apple notebook with high speed internet? Man, let’s just say I wouldn’t take the Diploma if I couldn’t get the notebook afterwards. What’s a college degree worth anyways? (If you look at my biography though, you’ll see that college is a commodity in my family. Some families vote Republican; mine reads and writes books.) My concern is that this conventional wisdom is like every other bubble. Once everyone agrees that a stock is valuable, they bid it up to the point where it’s no longer worth the… Read more »
“My concern is that this conventional wisdom is like every other bubble. Once everyone agrees that a stock is valuable, they bid it up to the point where it’s no longer worth the price. I think we’ve done this to a college education.” I presume you’re referring to perceived value and not the actual price of a college education, correct? I only ask because I think it could be argued that the chorus of voices touting a college degree as requisite first step in a career, thereby justifying exorbitant-and-rising tuition fees, can generally be breadcrumbed back to those who stand… Read more »
“I presume you’re referring to perceived value and not the actual price of a college education, correct?” Yes. Perceived value. If college were treated appropriately as an investment, then it wouldn’t be worth having at any price. People would then go less often as the price went up. Maybe this is an American thing because even INVESTORS make the same mistake….hmm….continuing with the investing analogy, maybe everyone is so afraid to be left behind that they go to college without thinking much about it? Then they graduate and have no choice but to face reality? Parents have to accept that… Read more »
How you say that others are trying to choose our career paths is something that I think many students can really relate to. Being a college student I remember how everyone always had their input on what I should go to school for. When really they should have no say in it. Also how you said that they are not factoring in how back in the day college was dirt cheap and parents could pay for their kids education…Right on! People really do not understand the affects that student loans have on them later on in life and that it… Read more »
Thanks Trevor. Anyone truly living in this reality will know it’s messed up. First let’s realize that it’s messed up. AFTER that, we can figure out how to fix it. AF above seems to be in denial – unless I’m reading him wrong.
What are you supposed to do instead of getting a degree? I understand that college is overpriced and student loans can ruin your life, but is sticking with a GED and working at a low-paying service job for the rest of your life with little hope of advancement really better? I’m all for giving much more thought about what school you choose to attend and how you finance it, but I’m not at the point where I think college is a waste of time and money.
“What are you supposed to do instead of getting a degree?” You’re supposed to grow up and take responsibility for your life. This way when your decisions work you can take the credit. When they fail, you’ll have nobody to blame but yourself – which means you can fix it. This is what empowerment sounds like. It seems that you’re so worried about money that you might enslave yourself. College educated people might have a “hope of advancement” – but the reality is much different for most. The economy never promises advancement to ANYONE, and your “hope” is based on… Read more »
So you’re saying that everyone should take blue collar jobs and be the best at washing cars? I don’t think that’s realistic. Especially in the recession, your chances of being unemployed go down drastically with increasing levels of education. Furthermore, the “past realities” still work for some sectors, ie STEM fields. I do agree that the college system needs fixing, but you haven’t really proposed a viable alternative. Would you have been able to become a financial consultant without your degree and the fact that you come from a highly educated family? People can grow up and take responsibility for… Read more »
“So you’re saying that everyone should take blue collar jobs and be the best at washing cars?” Nope. I’ll have to write another article about what I think people should do. Maybe if you answer the question at the end of the article, I’ll write something you can use? Notice how you don’t talk about college education without correlating it to employment? Correlation in past statistical data does not imply causation. Just because there are 1,000 graduates doesn’t mean there will be 1,000 jobs. Your chance of being unemployed does NOT go down with more education if everyone else is… Read more »
Reasonable alternative? Cut spending from areas of Government (i.e. Military) organizations, completely get rid of some Government organizations (research would need to be done here to find the ones that are pointless and still getting money) and reinvest it in making State Universities free. Public High School is free, why shouldn’t Public University be free?
You should NOT have to pay for quality Education.
Alessio I would agree with you. At a minimum you are not crazy.
The availability of federal student loans and other subsidies is proof that this country values education. Just not enough to make it free for the students themselves….
@AF What’s wrong with blue collar jobs? They are an opportunity to make good money. It doesn’t have to washing cars, I hope you were being sarcastic. There are mechanics, plumbers, electricians etc who make GOOD money while many college grads are flipping burgers. Theres also the option of being an entrepreneur. Some people start at the bottom of a company and work their way up. I dont agree with dumping money into universities. Flat out a lot of time they are a waste of time. I think it would be better to invest more in apprenticeship programs and tech… Read more »
#co-sign
“FYI this is not a political article, so please don’t engage me on that level.”
If you don’t think this article is political, then I don’t think you quite understand what politics actually is.
Everything that barks is not a dog. You’re in danger of being bitten, yet you have time to debate the species.
Hmm…well thanks for reading anyway.