Money Rehab with Nicole Lapin - The ROI on Grad School

Episode Date: February 8, 2022

Ugh. You’re in a work lull. A rut. And you think the best way to get out of said rut is to go back to school. Sounds familiar, right? Want a financial expert’s opinion? Nicole’s got you covered! Learn more about your ad-choices at https://www.iheartpodcastnetwork.comSee omnystudio.com/listener for privacy information.

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Well, it doesn't. Charge for wasting our time. I will take a check. Like an old school check. You recognize her from anchoring on CNN, CNBC, and Bloomberg. The only financial expert you don't need a dictionary to understand. Nicole Lappin. Ugh, you're in a work lull, a rut, and you think the best way to get out of said rut is to go back to school.

Sound familiar? This is a really common conundrum, and it's one that money rehabber Caroline is facing right now. Here she is. Hey, Nicole. My name is Caroline, and I work in strategic partnerships for a media company. I feel like I've plateaued in my corporate job, and I'm thinking it might be helpful for me to go to business school. Do you think that's a good idea? Ah, Caroline, Caroline, Caroline. I have heard this question a lot throughout the course of my career and even more so during the start of the pandemic when folks were laid off and wondering, what should I do next? Here's my take. Deciding to go back to school is not the right decision if it stems from a place of avoidance, as in avoiding any life and career problems you're having. Of all the business

decisions you'll have to make in your life as the CEO of you, the one about whether or not to invest in going back to school is one of the biggies. That's because it can be one of the biggest time sucks and money drains. But Lappin, I need an advanced degree to get ahead, you might be thinking. Sure, it might be tempting if you're going through a pause in your career to go back to school. But do you need it? Maybe, but likely not. Really ask yourself what career benefits you'll get out of it and if those are worth the time and money. Look, I'm a numbers girl, so let's crunch a few of them. It has been said that by getting an advanced degree, you can make $800,000 more over your lifetime versus a counterpart who doesn't have your wicked graduate

degree brain. With the average cost of your extra schooling at around $100,000, the $800,000 return sounds tempting and maybe even too good to be true. That's because most of the time, it is. If you're interested in this additional schooling purely from a money-making perspective, and yes, yes, I know you're also meeting fabulous people and reading fabulous books over on that fabulous grassy knoll. Well, then I have an even better option for you. Let's say instead of going back to school, you take that $100,000 and invest it over the next 50 years at 5%, which isn't even an aggressive assumption because in the investment world, it's assumed on average you make 10% over time. Well, with that, you'll

end up with around $1,150,000. That is a full $350,000 more than you would be making with your fancy-ass degree. And let's be honest, that $800,000 figure is purely optimistic in today's economy, where there is much less of a job premium for people who have their MS versus their BS. And those little letters basically sum up how I feel about the it's an investment argument for grad school. It's BS. More important than the money you'll spend is the time it takes to earn the degree. A year or more of your life? Is that worth it? Depending on what you want to study and where you want to go with that degree, the answer could be yes.

For example, getting your master's in engineering in today's tech world is a pretty solid investment, especially if you're a woman. And sure, specific industries require advanced degrees. Like, it's pretty difficult to sit for the bar exam and become a lawyer without going to law school. And you're probably not going to get a job as a brain surgeon without a medical degree. At least, I surely hope not. All I'm asking is that before you pony up the time and tons of paper for, well, another piece of paper, make sure you can really justify the debt monkey you're putting on your back. If you can, then great. But really, really try to prove it to yourself, not just with anecdotes, but with numbers.

Money rehabbers don't need a classroom to get an education. In fact, investing in yourself in alternative ways might just provide better real-world learning than you would ever get at grad school anyway. I'll dig into specific tips for this when I talk about networking in other episodes. But if you want to meet smart people who could help you in your career, you have tons of other options before spending major time and money on a fancy degree. Get the degree of life instead. That's really what employers care about. As an employer myself, I can say that what I look for in job candidates I meet is experience, not the letters after their name. I don't care if you got your education at an Ivy League school

or instead by busting your ass as a gopher for someone cool. In fact, I prefer the scrappy nature of the latter myself. My father's favorite quote on this subject was one from Mark Twain. Don't let your schooling interfere with your education. One of mine is from my favorite movie, Good Will Hunting. You dropped 150 grand on a fucking education you could have got for a dollar 50 in late fees at the public library. I can't do it with a Boston accent, but I tried. I'll say this. I can't do it with a Boston accent, but I tried. I'll say this. Moxie and street smarts are the most killer MS combination I think is out there.

For today's tip, you can take straight to the bank. If after taking a hard think on the case I laid out today, you still feel like grad school is the right move for you, see if your job would sponsor some continuing education costs. This is the ultimate win-win. You can continue to get the real-world education from your workplace and get the grad school education

for a reduced cost or even for free. See what I mean? Win-win. Bastin, pack the cap. How do you like them apples? Money Rehab is a production Bastin, pack the cap. How do you like them apples? We spend our money, money, money. Money Rehab is a production of iHeartRadio.

I'm your host, Nicole Lappin. Our producers are Morgan Lavoie and Mike Coscarelli. Executive producers are Nikki Etor and Will Pearson. Our mascots are Penny and Mimsy. Huge thanks to OG Money Rehab team, Michelle Lanz for her development work, Catherine Law for her production and writing magic, and Brandon Dickert for his editing, engineering, and sound design. And as always, thanks to you for finally investing in yourself so that you can get it together and get it all.