@subjectlife82
IMPROVED Estimates: (thanks to Anthony Zheng) College route: $2,712,000 after 40 years Family business: $1,680,000 after 40 years ONLY IF SHE - Enrolls to the right field - Receive the SAME SALARY from start - Gets the job ON TIME - Family business remain on FIXED Earning - The business doesn't flop AND + The job ends up with pension, but family business doesn't + Next generation don't have to start from scratch ( ...constructive criticism requested)
@HiramMaxem
College: 4,080,000 Income after 34yrs 252,000 Lost wages in 6yrs 144,000 College tuition and living expenses 1,224,000 Living expenses after College 2,460,000 Total actual profit Family business: 1,680,000 profit after 40yrs $780,000 difference over 40 years However, going to college vs not going is not purely a financial cost/benefit question. There are other factors that might be hard to quantify: growing a family brand or business and potential franchises, being close to your parents/family in their later years, following what makes you happy vs what makes you profits, paying back interests on loans, developing management, people and business skills earlier in life, etc. Both paths have pros and cons beyond the financial aspect.
@institches2750
Opportunity cost is such a useful concept. It can't always be calculated with money, but it teaches you to weigh the long-term costs and gains of every decision--even non-financial ones. For example: should you invite someone you don't like to a party? If you do, their presence will make the party less enjoyable. If you don't, their sibling whom you like will stop being your friend. Which is more valuable to you? Enjoyment of the party or the sibling's friendship?
@christophergibbs3771
The moral of the story is college can be a successful tool if used properly or can be financial the ball and chain attached to your leg. Opportunity cost is a simple way to decide which outcome has the best mathematical outcome. Still, it can be an oversimplified tool if all of the pros and cons aren't correctly added to the equation.College has a host of benefits that are not necessarily linked to direct expenses or wages, therefore, the college must be viewed as a circumstantial tool of choice for economic progression, but it is one of our society's greatest status symbols. It's often the cost/benefit of a choice that is not explicit that often has the greatest impact.
@ShawnRavenfire
Don't forget to calculate the interest on the loans, which depending on the conditions of the loan, can add up to more than you can earn in a lifetime.
@charliepeterson1745
I chose to become a private music teacher over studying physics. This allowed me to teach from home, chose where I live and work less hours.
@qujin5025
There is something can not be calculated, so just follow your intuition and interest, and treat what ever you choose seriously
@thepvporg
The family business is best option given the opportunity to make more from what you already have is obvious, branching out in to new areas and so on, where as being employed, you are tied to a system that you can't be as flexible as you want to be in... so the family business is better option... assuming your family are upstanding citizens with an ethic that is to work for the group not themselves...
@sprouts
Support us to make more econ videos at www.patreon.com/sprouts
@gokulvasamsetty4674
Man I've been following this channel for almost an year, these guys make amazing content with very neat illustrations and narration, I still wonder why they have such less subscribers and especially such less views and likes...These Fellas deserve so much more
@madhankumar175
Cost of tuition and living per month = $ 2,000/per Month Duration of studies= 6 Years= 72 Months Total expense for studies= 2000*72= $144,000 Working in Medicine for 34 Years Earning per month = $10000 Monthly expense= $3000 Net monthly income= 10000-3000=$7000 Total income in 34 years= 34*12*7000=$2,856,000 Actual income she will get by choosing medicine= 2856000-144000=$2,712,000 The actual income she will get by choosing the Family business=40*12*3500=$1,680,000 So financially the better decision is to take medicine
@chibha96
I am also in this stage of thinking of opportunity costs. I am a design graduate and professional and I find design considered a skill domain when compared to traditional domains such as STEM which is viewed as an academic domain.
@maylabrown4584
What about Community College or Trade School?
@mikenixon2401
Instead of teaching gender selection in schools, kids need to learn skills to work and live in the real world. Parents need to encourage and teach responsibility as well.
@walterbyrd8380
You might want to consider the value of experience. In many careers, experience is far more valuable than anything else. If you go to college for four years, that's four years of experience you did not get. Also, college costs way more than tuition. There is the cost of books, and a huge number of miscellaneous fees. You cannot qualify for most social programs if you are in college.
@carynpinkston1939
I'm a little disappointed that this video didn't discuss the other costs of going to college - the emotional/mental. Will you feel more fulfilled in a college-educated career, or not? Would it be more helpful or hurtful to your long term mental health to go through the often stressful coursework to earn that degree? Also, going to college doesn't guarantee a better job. Just ask my dad. :(
@bruceumba
The opportunity cost of college isn’t the first four years of work (everybody has the first four years of work), it’s the last four years of work, when you are making the most money. By skipping college you get to work four more years longer. Many people go to college specifically to skip those years.
@insightful_fairy8743
I have learning difficulties and have always struggled with education. Therefore, I choose to travel instead of studying and could always pick up casual jobs in the hospitality industry. With the experience and skills I have gained whist working these jobs, I have been able to work my way up to a manager position with a decent wage. For me, this way of living suits me so much more than going to school to study and struggling trying to do the work while at the same time loosing money.
@palechub2
a lot of people if not the majority do not use their college degrees in their current job which amounts to a waste of money and a waste of time. In my friend group only one of my friends actually is in the profession he got his degree in and is still in school going to turn 27 -28 by the time he graduates spend 10 years of college graduate specialization out of almost literally all of my friends. he's going to be a veterinarian.
@dinkopehar982