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Can Money Really Reflect The Value Of College Majors?

Can Money Really Reflect The Value Of College Majors?

Starting a college education is an exciting decision that can enrich your life for decades into the future. There are many ways to look at the value of a college education, including money and personal growth. If you are concerned about the years of effort and expenses required to obtain a post-secondary education, give yourself the benefit of reviewing the value of advanced study.

1. Engineering Majors Earn The Highest Incomes

For students who are interested in maximizing their income, engineering is an excellent choice. Engineering majors tend to earn more than many other graduates. In fact, some specialized engineers (e.g. petroleum) have earned +$90,000 salaries upon graduation according to a Wall Street Journal report. For those who enjoy the precision of science, math and engineering, there are many wonderful ways to make an excellent income and make the world a better place.

According to The Hamilton Project, engineering majors tend to earn over $2 million over the course of their careers. In contrast, English Language and Literature majors tend to earn $1 million over the course of their working career.

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Lifetime Earnings By College Major (The Hamilton Project)

    2. Reduced Likelihood of Unemployment

    Unemployment is an unpleasant experience by any measure. Not only do you have the prospect of lost income, but you also have to contend with the unpredictable job search process. The unemployment rate for college graduates in the US peaked at about 4% in 2010 according to a Business Insider report.

    Avoiding the anxiety and discomfort of unemployment is a significant benefit! According to Robert L. Leahy, director of the American Institute for Cognitive Therapy, “Research suggests that being unemployed doubles a person’s chance of a major depressive episode and that unemployment is also highly associated with domestic violence and alcohol abuse.” (source: Unemployment takes tough mental toll, CNN).

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    3. Increased Access To Six Figure Jobs

    Earning a six figure income is one of the rewards available to college graduates. For example, most project managers with six figure salaries have a four year degree. Other highly paid careers such as medicine, law and engineering also require a college education. While there are significant numbers of people earning high incomes without a college degree, it is a much more difficult to earn a high income.

    4. Understanding The World

    For many fields of study- including the liberal arts and social sciences – you gain a much deeper understanding of the world. My university studies focused on history and it enhances every aspect of my life. Whether I’m seeking to understand the latest revolution, the economic forces that influence our choices or the impact that leaders have, history has enriched my life deeply. My knowledge of history also enhances my enjoyment of travel and ability to understand different countries.

    If you are studying the social sciences, humanities or another field that prompts your friends and family to ask “what are you going to do with that?”, don’t worry. Smart motivated people who understand the world usually find good opportunities.

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    5. Improved Critical Thinking Skills

    Improving the quality of your thinking and reasoning skills is one of the greatest benefits you receive in college. In writing an essay, you acquire the habit of evaluating evidence and contributing your perspective. In a science class, you learn how to collect and organize data and other tools of the scientific method. These skills protect you from being taken in by people who play fast and loose with the facts. Developing effective critical thinking skills is a life long activity, get started now with 9 Ways to Train Your Mind to Think Critically.

    6. Prepare For Life As An Active Citizen

    The freedom to vote and participate in politics is a great responsibility. The broad perspective you earn from college studies – especially those in the liberal arts and social sciences – make you into a better citizen. Richard Sigurdson, former Acting Dean of Arts at The University College of the Cariboo, emphasizes the broad social and personal benefits of studying the liberal arts in his essay Why Study Liberal Arts?

    A liberal arts education will enhance your knowledge and improve your understanding of the world and its people. Many say that knowledge leads to wise action, perhaps even to goodness. Thus, an Arts education may help you to perceive and to understand your shortcomings, allowing you to become a better citizen, friend, spouse, parent, human being. Arts courses often enable students to reach beyond their own experiences and imagine worlds far distant in time and space. By opening your eyes, ears and mind, a good Arts education can strengthen in you the virtues of tolerance, sympathy, and respect for others.

    7. College Graduates, Regardless of Major, Earn More Than High School Graduates

    On average, earning a four year college degree significantly increases your income over the course of your life. This finding has been proven again and again by numerous researchers. Additional higher education tends to result in higher incomes. The chart below comes from the U.S. Bureau of Labor Statistics:

    Earnings and unemployment rates by educational attainment, U.S. Bureau of Labor Statistics

      Featured photo credit: Trinity College Dublin/Gigglekid via pixabay.com

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      Bruce Harpham

      Bruce Harpham is a Project Management Professional and Founder and CEO of Project Management Hacks.

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      Last Updated on January 2, 2019

      How Personal Finance Software Helps You Get More Out of Your Money

      How Personal Finance Software Helps You Get More Out of Your Money

      Do you know what mental health experts point to as the biggest cause of stress in the United States today? If you said “money,” then ding, ding, we have a winner!

      Three out of four adults today report feeling stressed out about money at least part of the time. People are either worried about not having enough money or whether they’re putting the money they do have to use in the best possible way.

      Your money is either in charge of you or you’re in charge of it, there’s no middle ground. Using some type of personal finance software can help alleviate some of that money stress and better allow you to manage your money effectively. Without it, you may just be setting yourself up for constant financial worry. Life is already tough enough and there’s no need to make it more difficult by simply hoping your money issues will all work out in your favor. Hint: they won’t.

      This guide will help you to understand how personal finance software can better assist with both accomplishing long term financial goals and managing day-to-day aspects of life.

      Whether it’s tracking the savings plan for your child’s college fund or making sure you won’t be in the red with the month’s grocery budget, personal finance software keeps all this information in one convenient place.

      What Exactly is Personal Finance Software?

      Think of it like the dashboard in your car. You have a speedometer to tell you how fast you’re going, an odometer to tell you how far you’ve traveled, and then other gauges to tell you things like how much gas is in the tank and your engine temperature. Personal finance software is essentially the same thing for your money.

      When you install this software on your computer, tablet, or smartphone, it helps to track your money — how much is going in, how much is going out, and its growth. Most personal finance software programs will display your budget, spending, investments, bills, savings accounts, and even retirement plans, levels of debt, and credit score.

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      How It Leads to Financial Improvement

      It shouldn’t come as a surprise, but people who regularly monitor their finances end up wealthier than those who don’t. When you were a kid, keeping track of all of your money in a porcelain piggy bank was pretty easy. As we get older, though, our money becomes spread out across things like car payments, mortgages, retirement funds, taxes, and other investments and debts. All of these things make keeping track of our money a lot more complicated.

      Some types of personal finance software can help make things a little less complicated, setting you up to meet financial goals and taking away some of the stress associated with money.

      Even if you already have a Certified Financial Planner (CFP) some type of personal finance software can be of great benefit. Whereas CFPs focus on the big picture of your money, they don’t handle the day-to-day aspects that determine your overall financial health.

      It’s also not nearly as complicated as you might think and can take out a lot of the tedium that comes with doing everything on an Excel spreadsheet or with a pad and pencil.

      Types of Personal Finance Software

      When it comes to personal finance software, it generally fits into two categories: tax preparation and money management.

      Tax preparation software such as Turbo Tax and H&R Block’s software can help with everything from filing income taxes to IRS rules and regulations and even estate plans. Plus, there’s the benefit of filing online and getting your refund check a lot faster than if you were to mail off your forms after waiting in line at the post office.

      For the purpose of this article, however, will be focusing more on the personal finance software that aids with money management.

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      Money management personal finance software will help you to see the health of your cash flow, pay down debt, forecast for expenses and savings, track investments, pay bills, and do a host of other things that 30 years ago would have practically required a team of accountants.

      When to Use Personal Finance Software

      So far we’ve gone over what exactly personal finance software is and how it can be a benefit to your money. The next logical step in this whole equation is determining when it should be used and how is the best way to go about getting started using it.

      Below are four of the most common and practical ways to use personal finance software. If all or any of these apply to you and your money, then downloading some type of personal finance software is going to be a smart move.

      1. You Have Multiple Accounts

      There’s a good chance that when it comes to your money, it’s in more than one place. Sure, you probably have a checking account, but you may also have a savings account, money market account, and retirement accounts such as an IRA or 401k.

      If you’re like the average American, you probably have two to three credit cards as well. Fifty percent of Americans also don’t have loyalty to just one bank and spread their money across multiple banks.

      Rather than spending hours typing in every detail of every account you have into a spreadsheet, many programs allow you to easily import your account information. This will help to eliminate any mistakes and give you a bird’s eye view of everything at once.

      2. You Want to Automate Some or All of Your Payments

      Please don’t say that you’re still writing out paper checks and dropping each bill in the mailbox. While it’s noble that you’re doing your part to keep postal workers employed, we’re 18 years into the 21st century and you can literally pay every bill online now.

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      There’s no need to log into every account you have and type in your routing number either.

      With personal finance software you can schedule automatic payments and transfers between all of your imported accounts. Automatic transfers will help to make sure you have the necessary funds in the right account to ensure all bills are paid on the appropriate date. Late fees are annoying and do nothing but cost you money. It’s time that you said goodbye to them once and for all.

      3. You Need to Streamline Your Budget

      Perhaps the best feature of personal finance software is that it allows you track everything going in and out of your virtual wallet.

      Nearly every brand of personal finance software out there has easy-to-read graphs and charts that allow you track every cent you spend or earn, should you choose. You might be pretty amazed when you see just how much you spent on eating out last month or if you splurged a little more than you should have on Christmas gifts last year.

      Every successful business on the planet has a budget and using personal finance software can help you trim the fat on your spending in ways that affect your everyday life.

      4. You Have Specific Goals to Meet

      Maybe it’s paying off debt or saving for up something like a European vacation. Whatever your financial goal is, whether it’s long-term or short-term, personal finance software programs are one of the savviest ways to go about reaching those goals.

      You can do everything from set spending alerts to notify you when you’re over budget to automating what percentage of your paycheck goes to things like retirement investments. The personal finance software that you choose should show you exactly how close you are to hitting those goals at any given time.

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      How to Get Started

      From AceMoney to Mint and Quicken, there ’s no shortage of personal finance software apps out there. Many of these programs are free to download and will allow you to pay bills, invest, monitor your net worth and credit profile, and even get a loan with the swipe of a finger.

      Other programs may only offer you limited services and will require a one-time fee or subscription to unlock all that they offer. These fees can often vary from as little as two dollars to 50 bucks a month.

      It’s best to start off with the free version and then gauge whether you’re able to accomplish everything you’d like or if it’s worth exploring one of the paid options. Often times the subscription programs come with assistance from financial planning and investment experts — so that can be a real benefit.

      When deciding which personal finance software program to use, it’s also important to look at how many accounts you wish to monitor. Certain programs limit the number of accounts you can add. Be sure that if you have checking, credit card, and investment accounts to monitor, that you choose a service that can monitor them all.

      Finally, when looking around for the right personal finance software that meets your needs, make sure that you’re comfortable with the program’s interface. It shouldn’t be expected that you recognize every single feature instantly, but if the features don’t seem readable and manageable to you, then you’re not as likely to use it and get the full benefits.

      Final Thoughts

      Personal finance software can go a long way in helping you to take control of your money and meeting your financial goals. It’s important to note, however, that some focus more on budgeting and expense tracking while others prioritize investing portfolios and income taxes. Explore several different programs and read reviews to find the one that’s right for you.

      In this day and age, managing one’s personal finances in a secure manner that allows the user to have a real-time visual representation of their money is easier than ever before. With the numerous applications that are out there — both free and subscription-based — there’s no reason that every person can’t take control of their money and ensure they’re making smart money moves.

      Featured photo credit: rawpixel via unsplash.com

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