Economic Guide to Picking a Major

[Goldielocks]

http://fivethirtyeight.com/features/the-economic-guide-to-picking-a-college-major/

Another article on the comparative (financial) value of various majors,  some good considerations of the wide range of "success" within a given category, that tends to be missed by other articles.

Nice to see a recent article.

Not sure if I will send it to my artsy daughter -- I do think that post secondary education can be about more than straight "value".   She already knows that most of the interests she has will require a coffee shop (or other) job, but that is not necessarily a poor choice or a poor life -- as MMM forum knows -- just planning and open eyes..

What do you think about chosing a career or major based on economics of the payback, successful completion and salary ranges?   (BTW 40% do not complete degrees?!)

[ysette9]

I think this type of consideration and analysis is enormously important and is a conversation parents should be having with children. The article mentions that students just don't seem to be getting it when it comes to selecting a major, but I think the collective "we" could be doing a lot more to educate them. I know that when I was in junior college I knew that I needed to get a degree to be successful in life, but I had no clue that what I majored in could impact my quality of life after school. No one explained to me why I might want to major in chemistry over French, and I fell into science (and subsequently engineering) for the simple reasons that a) I was bored of French after having been an exchange student and b) my boyfriend was studying engineering.

I happened to stumble into a degree in Chemical Engineering and can confirm what the article says about that being a lucrative major. So many people choosing majors around me though selected them on the basis of what their passions in life supposedly were, what was going to be deeply meaningful and fulfilling to the soul, or some other reason that was completely divorced from the realities of post-college life.

My final thought on this is that college is hard and is supposed to be hard. Let's forget this nonsense of it being "the best time of your life". That is bull$hit. Studying in school is an investment you are making in the rest of your life: work hard now and reap the benefits for decades to come. This does not mean that everyone should slave away and try to be engineers, but it does mean that you should not let your kid settle for whatever major sounds the easiest or let them take out loans to get drunk on the weekends and get mediocre grades.

[gimp]

What do you think about choosing a career or major based on economics of the payback, successful completion and salary ranges?

I think it's important to understand these. It's equally important to understand why college, and what the goals of going to college are. If the goal of college is to move from nothing to something, as it is for many people, it's probably pretty important to look at salary ranges and pick the right mix of good pay and work that interests. If the goal of college is to broaden horizons and get into a passion, and money is a secondary concern, fuck it, do whatever, as long as it's well understood that money may be an issue.

I may change my tune in 20 years, but right now it looks like I'll be able to give any hypothetical children a debt-free education without worrying about earning enough to repay loans.

"I am a soldier so my son can be a shop-keeper and so his son can be an artist" goes the quote.

[Goldielocks]

Good feedback, thanks.

Ysette9. I am not sure how to not 'let' my kids (when they are 18 plus) drink and choose a poor major...  My control lessens as they age, but I still natter at them..

Gimp you bring up a great point about open eyes and thinking about personal goals for what you want  to get from college, before you start.

I ask because I am of two minds on this one...  I chose the economically valid path, and did well, but that does not always buy happiness.  I would love my kids to have happy lives no matter their income, and wouldn't general education be a great treat to gift them....?

I liked your quote.

[Gone Fishing]

"I am a soldier so my son can be a shop-keeper and so his son can be an artist" goes the quote.

My wifes family jokes that her grandfather was an engineer, so his son could be a lawyer, so his son could work at Starbucks...

[Gone Fishing]

What do you think about chosing a career or major based on economics of the payback, successful completion and salary ranges?   (BTW 40% do not complete degrees?!)

I think it should certainly be a starting point.  Obiviously, someone who struggled through algebra should not tackle an engineering degree, but using quality data, a student could maximize their talents in a way most likely to provide a good return on their education.

Like ysette9, I pretty much stumbled into my degree.  I just followed my interest.  I am just lucky that I was born a nerd and found economics interesting!

[bop]

"I am a soldier so my son can be a shop-keeper and so his son can be an artist" goes the quote.

Here's a similar quote from John Adams in a letter (from 1780) to his wife, Abigail Adams: "I must study Politicks and War that my sons may have liberty to study Mathematicks and Philosophy.  My sons ought to study Mathematicks and Philosophy, Geography, natural History, Naval Architecture, navigation, Commerce, and Agriculture, in order to give their Children a right to study Painting, Poetry, Musick, Architecture, Statuary, Tapestry, and Porcelaine."

[MrsPete]

Several thoughts:

No, you may not be able stop your 18-year old from drinking and goofing off in college, but you don't have to support that option financially.  Though our kids are responsible and recognize that we've saved for their educations -- and though they want to show their appreciation by working hard and honoring the sacrifices we made -- we let them know that they're on the "semester plan".  That is, we'll gladly pay for first semester, and when good grades appear, we'll gladly pay for second semester, etc., etc., etc.  If we DON'T see good grades and progression towards graduation, it's time to make a new plan.  That plan might involve coming home and attending community college, or it might involve stopping studies for the moment.  But if our kids were spending their days sleeping in and drinking their evenings away, they might keep doing it -- but it wouldn't be on our dime.

As for choosing majors, that's something with which we're dealing right now -- our youngest doesn't know what she wants to do.  She's good at a bunch of things, but not superlatively good at any one thing.  She wants to do something that'll help society, but something that'll also allow her to live comfortably.  This board kind of leans towards the idea that you should just enter a STEM major -- preferably engineering -- and if that's just not a good choice for you . . . well, what's wrong with you?  Are you stupid?  That just doesn't work for everyone.  I, for example, am super at math,  but I specifically remember realizing in second grade, as we were learning to subtract two-digit numbers from two-digit numbers, "I hate this.  I really and truly hate this."  And being forced to complete worksheet after worksheet after worksheet . . . of the same old, same old, same old . . . even though I'd mastered the skills . . . did nothing to make me like it better. 

[Albert]

My advice would be: if you desire some rare path in life very much and have a talent to be among the best in the field (upper 20%) definitely go for it. If not, but you like and are above average in math engineering or computer science is a good option. If that is not the case either just go for business/economics. It's a generic degree, but flexible and there are plenty of jobs where that is all that's needed.