Money Minute: College Degree Really Is Worth the Cost

×

New evidence that a college degree is worth the high cost.

The path to higher earnings goes directly through a college campus. A report from the Federal Reserve Bank of San Francisco says the average American with a 4-year college degree will end up with $800,000 more in lifetime earnings than someone with just a high school degree -- and that includes the cost of tuition and the lost earnings of spending four years in college. But the added cost of some private colleges doesn't always add to earnings potential.

The Obama Administration says no company is "too big to jail." Attorney General Eric Holder says "no company, no matter how large or profitable, is above the law." But he says the Justice Department wants to make sure that any criminal charges won't lead to catastrophic economic consequences.

Meanwhile, there are reports that federal prosecutors are near a deal under which European banking giant Credit Suisse (CS) will plead guilty to charges that it helped wealthy Americans avoid taxes. As part of the deal, Credit Suisse could pay as much as $1.6 billion.

A teenager has scored a big victory over Coca-Cola (KO). The beverage giant has agreed to remove brominated vegetable oil from its drinks. Bromine is a chemical used as a fire-retardant in furniture and children's clothing. It has now been stripped out of the company's Fanta and Fresca soft drinks, as well as Powerade. More than 60,000 consumers signed a petition started by a Mississippi teenager to remove the chemical. PepsiCo's (PEP) Gatorade previously stopped using bromine.

Here on Wall Street, the Dow Jones industrial average (^DJI) rose 17 points on Monday, the Standard & Poor's 500 index (^GPSC) added 3, and the Nasdaq composite (^IXIC) gained 14 points.

Adidas is reportedly looking to sell its Rockport brand of casual shoes. The Wall Street Journal says Adidas has been falling behind its main rival, Nike, and could use the money to boost its sneaker line. Adidas acquired Rockport in 2005 as part of its deal to buy Reebok.

-Produced by Drew Trachtenberg.


Increase your money and finance knowledge from home

Introduction to ETFs

The basics of Exchange Traded Funds and why ETFs are hot.

View Course »

Investor’s Toolbox

Improve your investing savvy with the right financial toolset.

View Course »

Add a Comment

*0 / 3000 Character Maximum

27 Comments

Filter by:
vharrison777

Durning the rebound from last great recession of 2007 the group with the lowest unemployment rate by a long shot are people with college degrees at only 4% unemployed. Not all folks need college degree but it helps unless you are taking some stupid course like AfroAmerican studies or some such bull.

May 07 2014 at 4:58 PM Report abuse rate up rate down Reply
Melissa Li

Don't go to college and get a degree that isn't even going to pay for itself.

I have medical school debt, but if I can't pay back my student loans it's my own fault. Even if I'm going to be paying them off for 30 years they will be paid off. I may not have an Audi or Mercedes but I have a job that I love and enough coin to drive a used Toyota, insure it for cheap ($25/month at Insurance Panda) and take care of my family. I'm sorry that I'm not sorry you can't have a luxury vehicle!

May 06 2014 at 5:07 PM Report abuse rate up rate down Reply
jigokurei

it is sad thought that many have to do into deep debt with financial aid to get a 4-year degree first. Then spend the next 10 years forced to pay it off.

May 06 2014 at 4:23 PM Report abuse +2 rate up rate down Reply
1 reply to jigokurei's comment
jigokurei

Ok, I really need to get my eyes checked out.

...It is sad though that many have to go into debt...

May 06 2014 at 4:25 PM Report abuse +2 rate up rate down Reply
jdykbpl45

Only when you have a job!

May 06 2014 at 3:40 PM Report abuse +1 rate up rate down Reply
jhrooney

The fed report is valid ONLY for some with degrees in demand. I hired many Marine Biologists that had to fall back on the electronics training they got in the military.

A lot of the waiters and waitresses around here have liberal arts, communications and marketing degrees. They have loads of student debt and no way to repay it. This is the recovery with no jobs.
The plain old carpenter, electrician, and plumber make much more than they do now and in the future. The biggest difference they get their hands dirty.

May 06 2014 at 2:57 PM Report abuse rate up rate down Reply
mikemaj82

Hmm. I'm still waiting for my Computer Science degree to even land me a job. This is total BS by the way because I worked in management for a supermarket chain. There were about 65 other managers, NONE of whom were college educated, but since they put in 15-20 years, they were earning over $125K. That's WAY more than any people I know with college degrees working in healthcare, IT, or basically any other job besides a Doctor.

May 06 2014 at 1:59 PM Report abuse +2 rate up rate down Reply
RMS

Except when that degree was earned in the 1970's and you are now over 50 years of age. Despite having 30 years experience in your field, no one will hire you because of your age.

May 06 2014 at 1:42 PM Report abuse +3 rate up rate down Reply
texastotenmom

american businesses ran out of america on JAN~20~09 cause you voted for a uneducated socialist communist , n their not coming back untill this muslim clown is removed from our white house in handcuffs ,so go put yourself in college debt for $80.000 n you get a free hat with that n learn to sing the song for your $9hr obamit job~~>"HOLD THE PICKLES ~~HOLD THE LETTUCE~~SPECIAL SAUCES DONT UPSET US . <~~

May 06 2014 at 12:21 PM Report abuse rate up rate down Reply
2 replies to texastotenmom's comment
republicanslostagain

Factless ignorant right wing nut job.

May 06 2014 at 12:24 PM Report abuse -5 rate up rate down Reply
1 reply to republicanslostagain's comment
teaparty2implode

Action speaks to much louder than words, ya coward.

May 06 2014 at 1:41 PM Report abuse +4 rate up rate down
korrectionelecshun

texasmom~~>you are spot on as what this country has been for the last 5 years now ,as it is downright disgraceful, as we hope Americans will put a end to this nightmare in 2014. !

May 06 2014 at 12:52 PM Report abuse -4 rate up rate down Reply
2 replies to korrectionelecshun's comment
republicanslostagain

Another misinformed right wing nut job.

May 06 2014 at 1:00 PM Report abuse +3 rate up rate down
obielies

ha ha ha all americans know that obamit n the dummycraps tanked our economy n housing markets for the last 5 years now n the ""whole country is misinformed" ha ha ha , as obamit n Hillary Benghazi,s job was to protect our Americans in Benghazi n :FAILED MISERABLY

May 06 2014 at 3:41 PM Report abuse -1 rate up rate down
rgkarasiewicz

"Attorney General Eric Holder says "no company, no matter how large or profitable, is above the law." But he says the Justice Department wants to make sure that any criminal charges won't lead to catastrophic economic consequences."


Hmmmm.......Just one more example of the double talk emanating from Washington these days.

Translation: The billionaires, the big banks, and the mega corporations run the country, and there's not one frickin' thing that we can do (and/or want to do) about it.

May 06 2014 at 11:46 AM Report abuse +4 rate up rate down Reply
.kowalski440mag

Yeah that's right a college degree will get you a fulltime job at McD's or maybe a $9/hr closing shift supr. Whereas a high school degree will only get you a $7.50/hr parttime job.....big deal! Both are deadhead/dead-end jobs.

May 06 2014 at 11:33 AM Report abuse +2 rate up rate down Reply