Every year, Forbes magazine issues a list of the education levels that yield the best ROI within certain occupations. Every occupation yields a different education level that pays out the most in terms of salary and job security.
Some education levels give higher returns than others because they supply employers with trained workers who have gone through the education process, have increased their skill sets, and now possess more valuable knowledge to offer within society.
Best Education Level in Terms of ROI
The education level that has the best ROI is an education in science, technology engineering or math (STEM). The education level with the next highest ROI are healthcare education levels.
So, education in science, technology, engineering or math has the highest ROI because these education levels are directly related to jobs that more than double a person’s salary over their lifetime.
Forbes magazine states that education in science, technology, engineering or math (STEM) is one of the most important education levels to receive education through because jobs within this education level are more than doubling average salaries throughout a worker’s lifetime.
Data was collected from the Bureau of Labor Statistics Occupational Outlook Handbook and salary data was gathered during the early stage of 2014, which is when Forbes Magazine performed its research.
Data shows that education levels relating to science, technology, engineering or math (STEM) had the highest return of education at more than $500,000. Education in science, technology, engineering and math was followed up by education levels in healthcare that had a rate of return at nearly half of education levels within STEM: $250,000. Healthcare education levels which include the education levels of registered nurses and physicians had education levels that paid off at $250,000.
Healthcare education levels are highly important education levels to focus education on because healthcare education is an ever-growing field within the United States of America.
Healthcare education degrees are among some of the most accessible education level options available in the country right now, which makes them very valuable for workers looking to better their education.
The education levels that had the lowest rate of return were education levels in education, education administration and religious education at $40,000 per year. However, these education levels are still important to invest in because they offer workers job security. Education is always an interesting thing to become educated about because it is ever-changing within society.
What is the ROI of education?
Having a better education has been known to be a good investment in terms of creating a better life for yourself. Education helps many people advance their careers and allows them to make more money.
Education helps you become more knowledgeable about the world around you, as well as it can help give you access to networking contacts which you may not have had before education.
Education can help give you knowledge to make your own decisions which is difficult for some people who are not educated. The education system has been known to be what many people use as the foundation of their future success in life, however, people are still confused about which education level provides the best ROI.
How to Determine Education ROI
To determine which education level has the highest ROI, many different education levels were compared such as two and four-year colleges and trade schools. When comparing education levels one must consider education cost, income difference of education level, and education time difference.
According to leading educationists at Brighton College, a leading international school in Singapore, children that have gone to established educational institutions have been able to demonstrate a higher level of ROI. This is something that was to be expected as better educational institutions end up producing better students that are more career-oriented.
One education level that was researched is community colleges which typically only last for two years and usually cost around $15000. The education level typically gives the student a general education which does not give them any specific education in a particular job. The education usually does not include internships or other training opportunities. According to table one, the average income for those who have studied at community colleges can be as low as $38,000 and as high as $48,000. This is compared to education levels for four years where education can be given in specific education such as engineering, business, etc.
Four-year education usually costs more than community college education with an average of $55000 and can range from $15000-$95000. It was found that the higher education level typically paid more than the two-year education level. Table one shows that education levels four years or longer can start at $47,000 and go as high as $85,000.
Based on education cost and education level the education level is worth it in terms of income gained throughout life. If education can be had for free there would be no question about education being for everyone however this is not the case.
Based on education cost, education is worth it in terms of income gained throughout life. Education only becomes unaffordable when education levels are too expensive or education is unattainable.
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