By Anna Prior and Matthew Heimer | MarketWatch – Tue, Sep 25, 2012 1:46 PM EDT
Yahoo! Finance/Getty Images - Students cheer during commencement ceremonies at Columbia University
In an era of dubious economic milestones, it was yet another lowlight. This spring, according to the Federal Reserve Bank of New York, Americans’ total student-loan debt ballooned to more than $900 billion — higher than their total credit-card debt. And no wonder the debt is piling up: Over the past two decades, the price of tuition has risen 20 times as fast as the average college grad’s wages.
Statistics like these help to flesh out a now-familiar message: The cost of college has escalated from unsettling to obscene. College administrators say that the soaring price tags reflect the rising costs of their own biggest expenses — faculty salaries and state-of-the-art dorms and facilities.
See: Complete college rankings by graduates’ salaries (PDF).
But even insiders acknowledge that it can all become a burden. At Ivy League stalwart Cornell University, for example, four years of full-price tuition and fees approaches $250,000. Faced with a choice between borrowing that much to go to that upstate New York Ivy or pursuing a more affordable education somewhere else, should an applicant really opt for the six-figure debt load? Says Thomas Keane, the school’s director of financial aid: “Please, don’t.”
Still, families may not mind shelling out such big bucks if the investment pays for itself, and then some, in higher compensation down the road. To help readers make that kind of calculation, SmartMoney offers its annual college survey, a bottom-line approach to the academic experience that doesn’t mind imitating the rude uncle at your family reunion — the one who insists on asking everybody what their salary is. And unlike many of the best-known college rankings, it’s a contest where the winners don’t always hail from the usual tiny pool of top names.
With help from PayScale, a Seattle-based compensation-data company that maintains 35 million salary profiles, we collected median pay figures for two pools of each school’s alums: recent grads (out of school for an average of three years) and midcareer types (an average of 15 years out). For each group, we divided the median alumnus or alumna salary by tuition and fees (assuming they paid full price at then-current rates), averaged the results and, finally, converted that result to a percentage figure. The outcome: a measure of return on investment that we’ve dubbed the Payback Score. For example, a hypothetical alum who spent $100,000 to attend college and now earns $150,000 a year would have a personal score of 150. Just as with the SATs, the higher the score, the better.
It’s admittedly a narrowly targeted formula. It doesn’t include, for example, financial aid, even as many schools are increasing it — under pressure from cash-strapped families’ cries of No más. And the value of an education, of course, can’t be measured merely in dollars and cents. But at a time when the average college grad is entering the workforce with $25,250 in debt, it’s the kind of calculation that financial advisers say more families are paying attention to.
Average Payback Score: 134
Average salary for recent grads: $47,790
Average salary for midcareer grads: $87,257
Among many folks who fixate on big-name northeastern liberal-arts schools, the Georgia Institute of Technology flies under the reputational radar. Even its president, G.P. Peterson, goes by the unassuming, guy-next-door nickname of “Bud.” But based on our Payback Score, the school deserves a higher profile — and some bragging rights. After all, it’s offering the best academic deal in America.
Recent Georgia Tech grads earn $59,000, or a stellar 67% of what they paid in tuition. Grads in their 30s average $102,000 a year, more than three times their 1990s tuition tab. Peterson says those imposing scores are no accident. Virtually all of Georgia Tech’s students are focused on science-oriented disciplines, including engineering and computer and software design. Those, of course, are the kinds of fields where the prospects and opportunities have remained strong even in this shaky economy. And then there’s the school’s status as a public university, which gives it access to taxpayer funds that have subsidized the cost of attendance, especially for in-state students. “We’re in a fortunate position,” says Peterson.
All of Georgia Tech’s neighbors at the top of the heap are also public universities; indeed, state schools have historically dominated our Payback Scorecard, and this year, they hold the top 17 slots. At midcareer, our public school graduates earn less in absolute dollars than their private-college counterparts, but as a proportion of their tuition, they’re pulling down 58% more than Ivy grads, and 85% more than alumni of non-Ivy private schools. For many middle- and upper-middle income families, that translates into a lighter economic burden — all the more important in an economy where salaries for college grads overall have been stagnant.
Kent Chen of Los Angeles chose the University of California, Berkeley, over a top private school this spring after his family confronted the price gap between the two — more than $27,000 a year. Paying higher tuition seems like too great a risk, says Kent’s mother, Yvonne, the chief financial officer at a community bank in Los Angeles, who notes that college in general is an economic gamble these days: “There’s a lot of kids graduating right now that can’t find good jobs.”
There’s no guarantee that the Payback math will keep favoring the public colleges in years to come. Many states, coping with budget deficits, have been cutting aid to these institutions, and the schools have had to hike tuition to compensate: Nationwide, public-college tuition for residents is up 120% in the past 10 years. As a result, says Lynn O’Shaughnessy, author of “The College Solution,” the assumption that state schools are still always cheaper is “just not true.”
At the University of Michigan, one of the lowest-ranking public schools in our Payback survey, out-of-state tuition now tops $30,000 a year, and financial aid is virtually out of the question for nonresidents. The university explains why: The per-student allocation from the state has shrunk by more than 50% over the past decade. And even our overall winner is coping with the new reality: At Georgia Tech, out-of-state students now pay almost three times as much as they would have a decade ago. But there’s a payoff, notes Peterson: 67% of the class of 2012 had jobs lined up by graduation weekend, up from 53% for the class of 2010.
Non-Ivy private colleges
Average Payback Score: 75
Average salary for recent grads: $46,024
Average salary for midcareer grads: $91,019
“Our degrees have the same workplace clout — at twice the price!” No admissions officer in their right mind would put that on a recruitment brochure, but that’s the picture that emerges when you compare non-Ivy private schools and public schools on our Payback Scorecard. By their mid-30s, alumni of the 21 private liberal-arts schools we surveyed are pulling down only about 4% more than their public school peers, despite having spent almost twice as much on tuition (assuming they paid the sticker price). At five of those schools, recent grads earned less than $43,100, the national average for all recently graduated bachelor’s degree holders.
School administrators and employment experts say this gap reflects the less-competitive compensation in liberal-arts-oriented careers like education, the arts and public policy. That’s not a gap that’s likely to go away: Between now and 2020, the Bureau of Labor Statistics expects annual growth of 3% or better in jobs in health care, software, and computer design, but much slower job growth in “softer” humanities-oriented fields like education and government. (Not to mention a steady decline in, gulp, publishing jobs.) Perhaps not surprisingly, our survey’s top-finishing non-Ivy private school, Carnegie Mellon — whose recent grads pull in almost $60,000 a year — is the Georgia Tech of that world, strongly oriented toward engineering and computer science.
Jim McKean, a consultant for Indianapolis coaching firm Career Investments, says that, in some ways, even less technical professions are becoming less receptive to liberal-arts grads: With budgets tight, many companies have eliminated the development programs that used to give basket-weaving types a year or two of apprenticeship in the business world. “They’ve taken their foot off the accelerator,” McKean says.
School officials say they’re aware that they’re not perfectly in step with the iPad workplace. Administrators at Sarah Lawrence, for one, say they recognize that they need to play a role in helping students get jobs, and they plan to launch a new Career Invention center in the coming year to teach students about starting their own businesses (more than 25% of their alums go on “to be developers of small businesses and innovators,” says Tom Blum, the college’s vice president for administration).
Some of the richer schools are taking a different tack, tapping their endowments to give big aid packages to new students. And some, like Vassar’s president Catharine Hill, point out that the economy won’t be depressed forever, and a liberal-arts education creates well-rounded employees able to deploy a variety of skills, like critical thinking and writing. “We are equipping them to lead interesting, satisfying lives when they leave us,” she says.
For the many students who get less aid, or none, there’s also a potential consolation prize. Top-tier private schools pride themselves on how well they prepare their students for graduate school. According to PayScale, midcareer graduates of all the private schools on our list were much more likely than the average bachelor’s degree holder to have earned a graduate degree; and nationwide, advanced degree holders earn 28% more than the bachelor’s-only crowd. Of course, there’s one big caveat: Getting more schooling often means paying even more tuition.
The Ivy League
Average Payback Score: 88
Average salary for recent grads: $53,750
Average salary for midcareer grads: $110,250
At least at first glance, the stereotypical connection between an Ivy League degree and a gold-plated salary appears to hold water. Three years out of college, Ivy grads are earning around 9% more per year than their peers from other private schools. By their mid-30s, that gap has inched up to 14%. And Ivy League alumni are two to four times as likely as the average college graduate to go on and earn an advanced degree — along with the higher compensation that comes with it.
But where the Payback Score is concerned, the Ivy story isn’t so great. Four years of tuition and fees now total around $140,000, and a recent Ivy grad’s average compensation — $53,750 a year — represents 39% of his or her education’s cost. Public school grads take home about $6,000 less annually, but they earn 52% of their tuition. At 15 years, the Payback Ratio is 137% for the Ivies, versus 216% for state school kids.
In an economic climate where job prospects are less certain than ever, it’s the kind of stat that can give parents and kids pause about whether the best schools are worth the price. Lesley Mitler, founder of the New York City coaching firm Priority Candidates which works exclusively with college students and recent graduates, says the numbers in part reflect the fact that Ivies don’t always do any better than other colleges in preparing their students for the working world. Without a track record of strong academic performance, internships and leadership positions, “you’ll often have as much trouble as everyone else getting a job, even if you went to an Ivy League school,” says Mitler.
Still, the salary numbers don’t reflect some of the biggest advantages of an Ivy League education — including the network of alumni in leadership positions in almost every industry, says Nick Corcodilos, an executive recruiter in Lebanon, N.J., and host of Asktheheadhunter.com. “Ivy League schools in general tend to be better at promoting networking and connections to alumni,” he says.
Some Ivies have made efforts recently to leverage their large endowments (around $90 billion, collectively) to cut tuition costs. In 2001, 45% of Princeton’s seniors graduated with debt, averaging $15,000 per borrower. Since then, the school has broadened a no-loan program for upper-middle-income families; today, only 25% of outgoing seniors have debt, averaging $5,000.
Even at the most generous Ivies, of course, about 40% of students get no aid at all. Rachel Durrwachter of Herndon, Va., got into Cornell this spring, but the school offered no financial assistance. So instead, Rachel is attending the College of William & Mary, an in-state public university. Keane, the Cornell aid officer, notes that the school has a larger student body than any of the other Ivies, and that its endowment is relatively small; so in practice, he says, the school has had to be more selective about aid “since the economy tanked.”
As for Rachel, she says she’s glad she’ll be free to explore majors with less pressure to haul in a huge salary, especially since she wants to earn degrees beyond a bachelor’s. Her father, Michael, a sales director in the telecom equipment industry, has perhaps the most hard-nosed take: “It didn’t make sense to take on a ton of debt just for an undergrad degree.”
I give you a fish, it will last you for only a meal. But if I teach you how to
fish, you will have as many fishes for the rest of your life. Who does not want
to learn how to fish?. Fantastic, Thank you.
Toastmasters, Ladies and Gentlemen,
are the three (3) true but ugly financial facts of life.
# 1. Only 1 out of 100 American does investing. You may probably say who cares
about the Americans.
# 2. In 2011, the Federation Of Malaysian Consumers Association (FOMCA)
reported that 72 out of 100young adults have no retirement plan. Some of you may
say "Not a big deal."
# 3. About 1 out of 2 Malaysian retirees used up their entire EPF money in
their first 10 years after their retirement. Scary? Right.
you can't say that it does not matter to you anymore.
like to share with you some financial tips which will help you to grow your
wealth steadily to a new record level which I hope will last you for the rest of
you know who Warren Buffet is? He is probably the most successful investor of
the 20th century.
rule No 1. - "Do not Save what is left after Spending, but Spend what is
left after Saving."
unknowingly, have been applying his financial wisdom since I was 14 years old.
earned my first interest INCOME from my saving accounts with the Bank Simpanan
Nasional after I had learnt the time value of money from my commerce teacher at
My saving habit then spread to other areas of my life. My
mantra: Save Your Self Time, Energy, Money (SYSTEM) was developed when I began
doing almost everything at my record speed.
I understand why Robert Kiyosaki pointed out the only difference between the
poor and the rich is how they use their time.
Rule No 2. – “Invest money instead of spending it.
1975, I used my savings to acquire my first and the most economical bicycle to
enhance my Earning. I tripled my sales income with it by covering much bigger
areas at much faster speed than relying on public buses. "WOW! That’s not
put it simply, you need to use money and time to make more money.
the current high inflationary regime, you need to invest wisely to generate a
Return higher than the inflation rate in order to grow your wealth.
Rule 3. - Invest in yourself.
have applied this rule since 1979. I terminated my part-time sales business to
concentrate on my studies. With my MCE certificate, I tripled my monthly income
compared to my last business profit
then, I kept on investing in myself by upgrading and enhancing my knowledge and
skills. Putting Knowledge into action is Power - I have been subscribing to the
above three (3) rules wholeheartedly over 30 years.
a result, I have been receiving rental, dividend income and trading profits
from my investment from my investments in properties and shares over 15 years.
This is my secret of keeping my wealth figure SEXY:- Huge in
income; Small with daily non investment expenses; Big in Net worth.
elevate yourself to the next higher level, you need to learn, unlearn and
relearn. Through this process, you will slowly but surely go far beyond your
people invest in themselves. They enhance their skills to make more money.
Kiyosaki and Donald Trumph co-wrote the book, "Why we want you to be
multibillionaires" ( show the book)
their book, they said if you don't become rich, you will become poor.
is the state of your mind.
your mind is weak, you see problem,
your mind is balanced, you see challenge,
your mind is strong, you see opportunity.
an appropriate mindset, knowledge and skills, I am now more comfortable to add
much higher risk’s investments into my portfolio so as to gain much handsome profit
is a skill, just like Public Speaking. Treat the above tips as your Fishing
Competence Manual. Leaders are made, so are Fishermen.
If I give you a fish, you will eat for a day. If I teach you how to fish, you
will eat for a lifetime.
I share with you some financial tips with the
hope that it will help you to grow your wealth steadily to a new record level
that will last you for a lifetime.
Listen carefully to these ugly but true financial facts.
Fact # 1. 99 out of 100 of American is NOT part of the "Investing
class." Who cares?
Fact # 2. For the 1st quarter of 2012 the average credit card debt for indebted
households was $14,517. And it may continue to grow. Not a big deal.
Fact # 3. About 5 out of 10 Malaysian retirees used up their EPF money in their
first 10 years after their retirement.
Can your wealth last for your lifetime with a
longer life span due to advancement in Science and Technology?
Warren Buffer's rule No 1. - "Do not save what is left after spending, but
spend what is left after saving." I, unknowingly, have been applying his
financial wisdom since I was 14 years old. I earned my first interest INCOME
from my saving accounts with BSN after I had learnt from my commerce teacher
around that time.
To enhance my savings further, I have been
trimming down my daily expenses. Examples such as prepared my own meal to
school and walk to school instead of taking public bus.
My savings habit spread to my other areas of
life. Save Your Self Time, Energy, Money (SYSTEM)was developed when I began
doing almost everything at my record speed. That is the secret of keeping my
Sexy wealth figure. Big in income; Small with daily expenses; Huge in Net
worth. Multitasking is also my Expertise, which empowered me to trade off my
time saved for more money.
Now, I understand why Robert Kiyosaki pointed out the only difference between
the poor and the rich is how they use their time.
Warren’s Rule No 2. Invest money instead of
spending it. I have applied this rule since 35 years ago.
In 1976, I used my savings to acquire my first
and most economical bicycle to enhance my earning potential. With this, I
tripled my sales income. WOW! say “not bad”.
To put it simply, I use money to make more
money. With the high inflationary regime, you need to invest wisely to generate
higher yields than the inflation rate so as to accumulate your wealth.
Warren’s Rule 3 Invest in yourself. I have applied
this rule since 1978. I stopped my part-time business venture to peruse my
study. With my MCE certificate, I tripled my monthly income compared to my last
business profit. I then repeatedly applied this rule throughout my life. This
is the way you sharpen your axe before you move to the next higher level.
I keep on investing in myself. Putting knowledge
into action is power. I have been subscribing to Warren's rules wholeheartedly
for more than 30 years. But it was very, very clear looking backwards at least
10 years thereafter. To elevate yourself to the next higher level, you need to
learn, unlearn what I have learn before relearning. Through this process, you
will surely and slowly go beyond your limitation.
Wealthy people invest in themselves. They
enhanced their skills to make more money.
In this book "Why we want you to be
multibillionaires" by Mr. Robert Koyasaki and Donald Trump.
If you don't, you will become poor.
Wealth is a state of mind.
When your mind is weak, you see problem,
when your mind is balanced, you see challenge,
when your mind is strong, you see opportunity.
To be wealthy, you need to stay focus on BIG picture. Take a baby step; full
step before you take leap step on new venture. In doing so, you are able to
stay cool and fix the pitfalls that come along your way.
Maintaining Sexy figure is not only a must to
accumulate your wealth, but you must also stay vigilant at all times. Ready to
grab the opportunity that comes along that can give you the highest possible
yield that fit well with your given circumstances, without affecting your
peace. Stay hungry, be foolish .
It was great relief after I read the Star dated
Oct 11, 2012 that the Tenaga Nasional Berhad will temporarily halt the
replacement of meters.
I still vividly recalled that a group of its staff harassed me
many times to replace my current meter, claiming that it exceeded 15 years of
life span. Luckily I did not give in despite the rumours of fear of fire
destroying the house caused by the old meter from certain quarters.
According to the news that the decision was made after receiving
their customers' complaints that the upgrading of electro-mechanical meters to
new digital meters had led to higher electricity bills, including
As such, we described the above measure as timely and commendable.
The news also reported that the Energy, Green Technology and Water
Minister Datuk Seri Peter Chin Fah Kui that the new digital meter will only be
implemented once the standard operating procedure is in place.
Attach below please find the article from the Star for your
A day after this news was published, I was deeply shocked to find out one of the customers consulted the shop owner as she was hit by not only much higher electricity bill but the bill also included "retrospective" charges of several couple of hundred ringgit. Without much hesitation, I told her about this news and advise her to resolve the issue with the appropriate authority, which I hope have resolved it amicably by now.
With such an experience, I do hope that the appropriate authority will take more cautious measures in any new implementation, and not rush to implement so that the ministry can spent the saved time to deal with more challenging issues and not act like a fire fighting squad.
It simply means that choosing to align and harmonise the internal aspects of you with whatever form
of wealth you desire to create for yourself FIRST, enables the external to become much more simple to acquire.
In a nutshell, it is a Wealth Inside Out process.
Here, we believe that It All Begins With Mindset Followed By Action and The “Tangible” Tools To
Make It “REAL”.
If I give you a fish, you will eat for a day. If
I teach you how to fish, you will eat for a lifetime.
Good evening fellow Toastmasters, ladies and
Today, I will teach you some financial
principles which will allow you to profit
handsomely from investments instruments. Hopefully, this will last you for
Listen carefully to these ugly but true
Fact # 1.
99 % of US population is NOT part of the "Investing class." Who
Fact # 2. For the 1st quarter of
2012 the average credit card debt for indebted households was $14,517. And it
may continue to grow. Not a big deal.
Fact # 3. About 50 % of the
retirees used up their EPF money in their first 10 years after their
retirement. Scary? Right.
Now, you can't say that
it does not matter anymore.
I like to share with you
3 powerful tips to better your wealth.
Warren Buffer's rule No
1. - "Do not save
what is left after spending, but spend what is left after saving"
I, unknowingly, have been applying his financial
wisdom since I was 14 years old. I earned my first interest INCOME from my
saving accounts with BSN after I had learnt from my commerce teacher.
To further enhance my
saving, I then keep on trimming down my daily expenses. Examples such as I
prepared my own meal to school and walk to school instead of taking public bus.
My saving habit even
spread to other areas of my life. Save Your Self Time, Energy, Money (SYSTEM) -
I began doing almost everything at my record speed. Multitasking is also my Expertise.
I then traded off my time saved for more money.
Now, I understand why
Robert Kiyosaki pointed out the only difference between the poor and the rich
is how they use their time.
Warrant’s Rule No 2. Invest money instead of spending it. I have applied this rule since
35 years ago.
Around the same time, I used
my saving to acquire the most economical bicycle for myself. I bought the used
bicycle frame and used wheels separately. All in, I only spent RM 15 for my
first bicycle in 1975. With this, I tripled my sales income. WOW, say “not
To put it simply, I use
money to make more money. Never spend money to improve your life style, but use
it wisely to accumulate more wealth.
Warrant’s Rule 3 Invest
in yourself. I began to apply it since
1978. I stopped my part-time business venture a few months before my MCE
examination. With my MCE cert, I have increased my income more than triple
compared to my last business profit. I then took my LCCI intermediate book
keeping, on part-time basis, with intention to further enhance my monthly
income easily more than double.
I then have a bigger
dream. I keep investing in myself to ACQUIRE knowledge and skills to enhance my
I did not realize that I
have been subscribing to his rules wholeheartedly for the past 30 years.
Wealthy people invest in
themselves. They enhanced their skills to make more money.
In this book "Why
we want you to be multibillionaires" by Mr. Robert Koyasaki and Donald
Trumph. ( show the book)
If you don't, you will
Here, it has clearly illustrated
that not of the money and the luxurious lifestyle that make people wealthy. It
is their mindset.
When your mind is weak,
you see problem,
when your mind is
balanced, you see challenge,
when your mind is
strong, you see opportunity.
By now, I believe you
know which choice to take for your betterment.
To know the road ahead,
ask those who has returned back.