Another look at education

Most parents assume that the best education is the most expensive one. Going to the higher tuition schools is almost always equated to high quality education. Graduating from such expensive institutions is taken as a guarantee for a good career and personal financial success. Indeed, education is an investment for one’s own future. But what if we were to look at education as strictly a financial investment decision? Though clearly, it is not all about money, determining the most appropriate type of education for our children boils down to affordability. Here is where the pitfall lies. Most of us will kill ourselves to give our children the most expensive education (at the expense of other just as pressing needs) we can afford. Why? This is because we have been conditioned to believe that the higher the investment in education, the higher the return. Worse, some of us may even believe society will judge our stature by where and what category of school our children go to. NOTHING COULD BE MORE IRRELEVANT TO OUR LIVES THAN THIS! Purely on a return on investment perspective, we must evaluate the cost of formal schooling versus the lifetime cash return to the graduate. Presently, even graduates of the so-called high-end schools are having a hard time finding jobs. This was happening even before the present global economic crisis. Today, life is more complicated, much more competitive and expensive. Few can have the luxury of wasting time, effort and money in an education that was not really fit to the personality of a child/person. Thus, we should encourage “dreams” in the minds of our children much earlier in life on what they want to be when they grow up. As parents and teachers, we must observe them more and guide them towards the field/s in which they seem to have the most capability to enjoy and succeed. They have to be preparing for their “personal career” as soon as they step into high school. There is now clearly a large-scale mis-match between what our economy needs and what schools are turning out. We continue to send our children to take courses with no long term economic potential other than perhaps getting employed with a reasonable salary. Getting college degrees are no longer as imperative in securing gainful economic activity after graduation. Being creative and logical with a facility for communication seems to be the order of the day. Learning (to speak and write) another foreign language like mandarin or some other European language should now be considered very seriously. With the global economic focus on Asia, knowing a major Asian language can give our children the best head start in availing of a broad range of entrepreneurial and employment opportunities. Being multi-lingual is an enormous asset in such industries as tourism, business process outsourcing (BPOs), consulting and advisory services and many others where international businesses are involved. Entrepreneurial education founded on liberal arts is, today, the key to personal economic success. Liberal arts teach us to how to think and assess, to define problems and arrive at solutions, to create and add value. More importantly, it develops a mindset that forms the seed of our intellectual capital, which for most of us, is our only true capital in this life. If we accept this premise, securing “profitable” education need not be concentrated on expensive formal schooling. We can then even have the option of combining formal and non-formal schooling at very low cost. Two-year communication arts courses augmented by languages and/or practical vocational and small business training can reduce your educational investment by as much as 50%. Though your children may not initially have impressive degrees, they can nonetheless plan to secure formal degrees and/or certificates of a recognized educational attainment at their chosen time in the future. We should open our minds to the practical norm of taking more time in formal learning but getting more practical experience “on-the-job”. Such combination of formal and non-formal schooling would actually impart more real learning and develop a more serious entrepreneurial aptitude. The big advantage in this approach is that our children will be able to use their time with “hands-on” education. Learning could then really be not only profitable but also enjoyable and fun! FRANCISCO J. COLAYCO is an entrepreneur, a venture developer and a financial advisor. He has over 40 years of experience that covers service contracting in the Middle East, manufacturing, trading construction, shipbuilding, management consulting, banking and financial services. He is the Chairman of the Colayco Foundation for Education (CFE) and the author of the bestsellers: Wealth Within Your Reach (2004 National Book Award for Business and Economics), Making Your Money Work (Nominated in 2005, National Book Awards Business and Economics), Pera Palaguin Workbook and Money for Kids. Mr. Colayco’s financial education is also in video format, the “PISObilities DVD Series”. The first of a series is entitled “Pisobilities 1: Bak Por Gud”. His educational materials are available at National Bookstore, Powerbooks, Pandayan and other bookstores. He joins our website blog to share with ordinary income earners, Overseas Filipino Workers and students the simple principles to "Save what you earn and grow what you save.” CFE conducts talks, seminars, and workshops. CFE presents “Money Matters for Women”, a money-management learning series at 14 SM Supermalls from March to July 2009. March 7, Saturday 4:00 to 6:00 pm at SM Megamall Atrium at the Bridgeway, March 14 at SM North Edsa and March 28 at SM Manila. Admission is FREE. For more information, please visit www.colaycofoundation.com, email info@colaycofoundation.com, SMS +63917-8537333 or call (632)6373731 or 6373741.