I cannot say that I was shocked when I read this article. Although the sample size leaves much to be desired, I am sure the numbers hold a lot of truth to them. But, if we are willing to trust our political polls to 1,000 random people, I guess the sample size isn’t really a problem. I should know this, I did pretty well in my statistics courses. Say hello to confidence intervals :)
Here is an excerpt from the article:
Some 50 percent of college students say they would be more likely to accept a job that offers higher pay but less career satisfaction in order to pay off their student loans, according to a report by Boston student career networking service firm Experience Inc. But only 40 percent of recent grads said they actually took a higher pay, lower satisfaction job.
The mountain of debt the average college student graduates with is making them reconsider their career path in school. Some 27 percent of college students said student loans are affecting their decisions to pursue particular careers, and 47 percent of recent grads say their career pursuits are influenced by loan payments.
A quarter of recent grads say they sacrificed continuing education or graduate studies because they needed to make student loan payments.
Read the full story here.
Debt Impact On Decisions
How about you? Did you take a different job based on the sheer magnitude of your loans? I went with a lower paying job (however slightly) to be placed in a more attractive location while doing something I was more interested in. But I put a lot of focus into working throughout college so I would graduate without debt. With that in mind it’s pretty clear my decision did not have as many ramifications. However, if placed in a situation where I was graduating with debt, I would like to think I would make the decision to choose satisfaction over income. I guess it would depend on just how different the incomes were; Because I know I would be a lot happier to get out of my theoretical debt earlier, too.
Also, do you think accepting a job that pays 15% more will equate to more happiness if the job itself is less desirable? The above image is pretty popular in showing the correlation (not causation…) of happiness and income. I have attached a second version that shows the responses based on age. How does happiness relate to job satisfaction?
These graphs show some obvious things like living in a developed nation makes you happier, on average, than living in a third world country. But that is just Maslow’s Hierarchy of Needs. People who can afford to eat are happier than those who cannot; Hence, Americans are considerably happier than people from Togo.
However, it is interesting to note some of the countries who earn less but are happier than the US, such as Finland and Denmark. Then there are countries who earn considerably less who are roughly equal in happiness, such as Venezuela and Costa Rica. Are we doing something wrong? Or can this all be contributed to something as easy as perception?
How Does Income Correlate to Satisfaction for you?
How would you relate this concept to your own life? Do you feel that the investment you made in college has paid off in terms of a high-paying job? Do you think there were any trade-offs in your happiness in order to take your current job? At what point does an extra x% of income outweigh a y% decrease in happiness? I am fully aware that a higher paying job does not automatically equal less satisfaction. But, for the sake of the original survey performed, we are comparing lower paying higher satisfaction jobs to higher paying lower satisfaction jobs. If you can get a higher paying job with more satisfaction, jump on it! :)
Oh, and I keep using the term happiness interchangeably with the graphs terminology “life satisfaction,” I think that is a safe leap.
What should the end lesson be? Graduate without debt and match the benefits with the cost of the education.
I asked a lot of questions here, feel free to hit me back on any of them!
I'm MLR. After graduating from college debt free, I decided to write a blog encouraging people to adapt responsible and sensible personal finance rules.
February 27th, 2009 at 3:42 pm |
At the moment, I don’t think my college investment is paying off; I would have hoped being a highly-trained biochemist would have meant a bit more job security.
For the broader question of trading job satisfaction for increased payment, I think it’s a matter of the exact trade. An extra $2,000/year for taking on a slightly less fulfilling assignment could easily be worth it, while $200/year extra might not be. Similarly, an extra $1,000/year to work under the worst boss in the company probably wouldn’t be a good trade, but if you could get an extra $10,000 for the switch, it’d be worth considering.
It’s a similar concept to working overtime; is losing an hour of your free time (as well as any commuting costs/time, etc.) worth the time and a half pay? Only you can make that decision.
[Reply]
February 27th, 2009 at 5:38 pm |
I doubt that my college investment will ever pay off. I went to school for all the wrong things, and was too far into my degree with too much debt before I realized it. At that point, it was a decision between $30,000 in debt and no degree, or $42,000 in debt an a Bachelor’s in something no one has ever heard of. I went with the latter, and I don’t regret it, but I’m not going to operate under any delusions, either: monetarily, it probably wasn’t worth it.
[Reply]
March 2nd, 2009 at 2:30 pm |
I plan on working full-time and running an internet business while going to school to help pay for expenses.
I can see if someone is only making $10 an hour this can be somewhat pointless.
If you are making 30-60k/year then it will be useful to be ahead.
[Reply]
March 3rd, 2009 at 1:38 am |
My degrees definitely paid off. However, I’m not in my degree field, nor did I get a ridiculous degree in a low marketable skill.
Our country needs more investment in trade schools.
[Reply]
March 3rd, 2009 at 6:49 am |
@ Roger — It is defintely a case by case basis. I was wondering how you all make that decision! Interestingly enough, I have an article coming in the next month or so on the effects of overtime on health. Some new studies are coming out!
@ Stephanie — If I found myself in the same situation… I guess there would be no downside to go for the extra $12,000 in debt! Being that the bachelors degree you are getting is under the radar, does that mean there will also be opportunities for you when you graduate? Or is there also lack of demand?
@ Paul — What kind of internet business? Selling goods or advertising model? What do you mean by saying “it will be useful to be ahead?” If you are saying what I think you are saying… “ahead” is a pretty relative term! :)
@ Thomas — What drove you to work in a field in a different area than what you got a degree in? Was it the money, the satisfaction, or other? I 100% agree that we, as a country, need to invest more in trade schools, though.
Thanks all for commenting and I hope to see you around!
[Reply]
March 10th, 2009 at 2:20 pm |
I have not yet completed college but I know that my degree will help me out in the field I’m getting into simply due to the competition. The business field is full of many intelligent people and many people would like to work certain jobs but it’s the piece of paper that limits many people. Luckily I have also not gone in debt getting this paper.
[Reply]
February 11th, 2010 at 3:22 pm |
You can choose a career without having to take out a mortgage. Forget Uni. Become a truck Driver. The age to drive an artic is now 18. It should cost you no more than £2 to get your licence. The transport industry is screaming out for young people.
[Reply]
June 20th, 2011 at 6:10 am |
You guys could also consider getting grants or scholarships. But I guess not everybody’s prepared to work their butt’s off to get one.
Beck
[Reply]
September 6th, 2011 at 7:45 am |
i would not say they drive your career at all instead they give you an opportunity, and its one that a lot of sutdents pass up once it comes to them.
Gray´s last blog ..1 Day Car Insurance
[Reply]