Debt vs education?

hordak · #1 (**permalink**) 07-25-2008, 06:51 AM

My kids have reached the age where they will be going off to school (pre school) this year giving me plenty of free time. I'm trying to decide what to do with that free time.

School: (Pro)Hire earning potential (Con) even more debt.
Work: (Pro) lessen my debt (Con) low earning potental

We have been counseled that both are important. Does one trump the the other?
Anyone been in this boat and have some advice?

MarginOfError · #2 (**permalink**) 07-25-2008, 07:13 AM

Congratulations on achieving your senior member status!

If you want the financially minded answer, you have to consider how much your earning potential will increase if you complete your education. Will you be able to earn a dollar more per hour or 10 dollars more per hour? Will you work full or part time? Will your job after education provide benefits? If the cumulative sum of your increased earning potential is greater than the sum of the debt you will incur, then it's worth it to go to school.

However, in matters like this, I don't think it's always best to think strictly financially. If getting a job now will lessen your debt while making you miserable at work, then it's probably better to get the education, and vice versa. So, I'd say consider the options, determine which one you think will give you the most long term happiness, and go for that one.

Listener · #3 (**permalink**) 07-25-2008, 07:43 AM

So many choices, so little time.

I don't know what you should do. I do wonder where your passion is...does the direction which education offers lead you to things which you are strongly committed to and wish to pour your energy into over the next twenty years? The right attitude will conquer your finances either way, but working at something you believe in is truly worth the effort.

Jbs2763 · #4 (**permalink**) 07-25-2008, 08:44 AM

have you heard of Dave Ramsey?
his whole "shctick" is be debt free, similar to what we have heard from salt lake, he just has a plan to get that way
Real Debt Help - Get out of debt with Dave Ramsey's Total Money Makeover Plan.
i know what his ansewr would be

work, save for school, then goto school

WANDERER · #5 (**permalink**) 07-25-2008, 08:50 AM

Will it offer flexible time or can you work half-time in it? Higher salary jobs tend to overlap more into personal time and to get that family friendly edge (time off for special school events, sick kids etc) flexible time is a great thing to have.

When doing your sums on financial aspects: work out when you start to make money and how long that will take in terms of debt payment...this is your break even threshold that you have to commit to. Store night packing does seem to be the job of choice for many students who need the extra money.

Working for a good income does help. While work does take up a significant proportion of your life and may be a long career (twenty years etc)...it's not your 'real' life. Low income=...no money to spend on the things that you are passionate about outside of work....this can be dull.

Truegrits · #6 (**permalink**) 07-25-2008, 08:54 AM

Quote:

Anyone been in this boat and have some advice?

(Long story short): after my divorce I had several jobs (low pay), a daughter in elementary school, and not liking where I was in life, nor seeing much hope for the future. I decided to go back to school. It was the best thing I could have done. I did go into debt to do it...however I was able, due to the better job, to pay off the school loan within two years. As a result of that decision I spent the next 20 years in a career that was both very rewarding and which I loved. So, it did work out for me.

As has been said, I think you need to find what you will enjoy doing; what will make you happy, while also earning a living for your family. Money alone does not make one happy; you want to, at the least, like what you do...

Loudmouth_Mormon · #7 (**permalink**) 07-25-2008, 09:59 AM

Get out of debt.
Get out of debt.
Get out of debt.
Get out of debt.
Get out of debt.
Get out of debt.
Get out of debt.

After that, then save for things you want, like more education. You have never been counseled from anyone at this church that you should increase debt to get more education.

LM

hordak · #8 (**permalink**) 07-25-2008, 10:12 AM

Quote:

Originally Posted by Jbs2763

have you heard of Dave Ramsey?
his whole "shctick" is be debt free, similar to what we have heard from salt lake, he just has a plan to get that way
Real Debt Help - Get out of debt with Dave Ramsey's Total Money Makeover Plan.
i know what his ansewr would be

work, save for school, then goto school

I think Dave underestimates the cost of higher education.

peanutgallery · #9 (**permalink**) 07-25-2008, 10:53 AM

I'm a Dave Ramsey fan so I agree - Get out of debt first and pay cash for college.

peanutgallery · #10 (**permalink**) 07-25-2008, 10:54 AM

Quote:

Originally Posted by hordak

I think Dave underestimates the cost of higher education.

I am pretty sure he has kids in college now so he knows exactly how much it costs.