You would think if you study economics, you would want to go into well, economics or behavioral psychology, become an economics teacher, work on Wall Street, a behavioral scientist, or perhaps be the host of Freakonomics radio.
Somewhat related to what you spent a quarter of a million dollars for and 4 precious years grinding through.
Wouldnât that seem logical or is this reverse psychology all over again?
No pun intended.
Education, especially higher education is the only investment people will make the largest commitment to and go into debt for no immediate guaranteed reward. Although graduates seem to have the most power in this tight labor market able to negotiate better pay and flexible working conditions, they still tend to take a leap of faith and pivot from their specialized major.
The most uncomfortable yet gratifying things in life tend to work this way. With any challenge, there are upfront switch costs then rewards to be gained later on. Delaying short-term gratification is difficult in this day in age yet always evokes a special feeling when crushed.
In March 2020 despite all teaching pivoting to remote, the most elite private HS in NYC still decided to bump up tuition twofold. They arenât the only institutions that did. There is only one logical reason they were able to continue raising prices in lockdown, all prior to 40-year record inflation even when costs were cut in half with students and faculty at home. Education is a prized and irreplaceable asset/experience. You attend a private school, not for the material. Math is math. Yes, you can get more attention here than in public school if you ask for it but at the end of the day, the learnings arenât so different or what you want your child to receive. You are paying for the lucrative network and the title on the diploma, both of which can never be replaced.
Connections arenât cheap. Elite social clubs in the city can cost up to $500k, with nothing else besides a seat at the table. Everything else from cocktails to tennis lessons is extra. You are paying for the access to people. No matter what happens to the economy, if you create a brand that is inelastic such as education and more specifically, private access that is pitched as being sacred and scarce, you will always be in demand.
Oftentimes itâs not about what we know but who we know to help us achieve success.
Nothing in life is free.
At private school, since parents from the top 10%âs equity-based compensation and defensible companiesâ earnings beat all odds during the pandemic providing more disposable income into their pockets and a financial buffer, this allowed them to expend more on their son/daughterâs education more easily able to dish out an extra $15k on school for a generous total of ~$60k a year. These folks must have made a beach house purchase sometime during the pandemic as well.
Education is a prized asset. It always will be becuase it is the most guaranteed path towards wealth. As they say, first do the learnings, then the earnings will come. Although I believe this is true, up to a certain point when one has an above-average wealth, over 80% of it was generated to good luck, fortune, timing, and of course, connections from private school. Keep your friends close, and your enemies closer. Donât rely too heavily on the books. People will help you get much farther.
Step Back And Take AÂ Step
With the average attention span set at 3 mins these days, it can be difficult for anyone to commit to something, let alone a single subject/major for 4 years at 19 yrs old.
As a 3rd-year student myself, I understand the frustration of being pigeonholed into 1 thing for too long. Thankfully I found the Gallatin School of Individualized Study at NYU for indecisive curious people like myself. Also known as the DIY school, this school is made for highly-motivated students who want to explore not declare a major by the first week of school.Â
Itâs an extremely rewarding and empowering place to not only learn alongside students who will be the next visionaries and entrepreneurs who believe in knowing a decent amount about a lot as opposed to a lot about a little, but know we also have freedom in our journey. No wonder younger generations are most susceptible to burnout and fatigue. They set too high expectations, compare themselves, and believe life is a linear path.
Isnât the whole point of learning to explore, be curious, not be afraid to make mistakes, and take time to digest it all? We are sponges and a lot of the time, students feel rushed and pressured into moving on with prerequisites and 1 subject. At the end of the day, it does no good for anyone to rush through an assignment especially if 94% of students donât carry on with it later on in life.
With education, the price will continue to skyrocket above inflation because thereâs always someone willing to pay the price. In fact, many students, specifically those from abroad have no other choice than to pay top dollar since they are oftentimes provided no financial aid and are the most in-demand students for this reason. Itâs a business after all. It has an endowment and everything.
Iâm curious to see how the NYC HS lottery system will play out. There is a love-hate relationship with this for obvious reasons. Freakishly remarkable students despise this the most with their scary high test scores but at least it will bring more equity and inclusion into elite specialized schools that traditionally favored students who could afford to allocate six-figures for a 2 year 6x a week HS entrance exam tutor.
More money = more privilege and this new system is going in the right direction to combat one of the many disadvantages New Yorkers face. There is a major broken fallacy that talent only exists in certain schools and universities. It exists everywhere and corporate America and the education sector have been late on realizing it. If people are told they have potential, they automatically feel and do better. If you give someone a chance, more often than not, they will blow you away.
Economic security should be guaranteed for all yet sadly even after spending a quarter of a million dollars and 4+ years of your precious growing years, it still isnât guaranteed. Luckily, there are ways to increase it and it starts with growing your diversified passive income streams as a student and pay off all dues.
Alongside the health care system, education is one of the oldest industries and most heavily subsidized. In the last 40 years, the price of higher-ed tuition has ballooned by more than 150%. At least cultural dynamics are shifting in the workplace. More women are graduating than ever before although the gender, racial, and wealth gap still persists, unable to rise as high and fast as their male counterparts.
If youâre a burnout senior almost at the finish line, first off, congratulations. You have faced true uncertainty during unprecedented times that you should be incredibly proud of yourself for. Millions of students delayed applying for college or took off gap years while you persevered.
Luckily there is no one path or single major for a specific job. As a reassuring example, look at the Fortune 500 CEOs and founders of blue-chip companies. You will be shocked at how few majored in the field they are pioneering and leading today. You can study economics and work in architecture if you aspire to. Life is your oyster and knowing that you are enough is all that you need. Youâve endured hardship but came out alive and now have the most power in your hands with employers eager for your diverse skills, experience, and top talent.
Embrace this new age and most importantly, never depend on one subject, person, or income source in life for ultimate richness. You have a degree and that is a true accomplishment in itself that cannot be replaced. Now meet people, find more, study less, and discover more. Cheers!