According to a recent study, the Net Worth of Americans Aged 18 to 35 has dropped by 34% since 1996. Here’s why. Add me on Instagram: GPStephan
The YouTube Creator Academy:
Learn EXACTLY how to get your first 1000 subscribers on YouTube, rank videos on the front page of searches, grow your following, and turn that into another income source: https://bit.ly/2STxofv $100 OFF WITH CODE 100OFF
Merch: http://www.GrahamStephanStore.com/
My ENTIRE Camera and Recording Equipment:
https://www.amazon.com/shop/grahamstephan?listId=2TNWZ7RP1P1EB
Within the article, we have two main takeaways:
First, on average, the cost of education – AKA COLLEGE – has risen 65% in the last 10 years.
And second… wage growth – on average – has only gone up about 26% in the last 10 years…
When we factor in inflation, we’re left with the NET cost of college going up a whopping 54% IN 10 YEARS.
And the NET increase in wage growth during that same time going up a whopping…you ready for this?…6.5%
The first thing we need to discuss, is college…and how ridiculously expensive it is.
The main issue, I think, is that we have a society that encourages getting a college degree as the “safe way” to be successful, and we have many of our parents pressuring us to get a college degree because that’s what worked FOR THEM.
Just look at the statistics though…in 1970, only 16% of people had a college degree or higher.
https://trends.collegeboard.org/education-pays/figures-tables/educational-attainment-over-time-1940-2009
Today, nearly 40% of millennials in the workforce have a bachelors degree:
Today’s young workers are more likely than ever to have a bachelor’s degree
This means that, back then, not only was college CONSIDERABLY less expensive than it is today, but it was FAR more exclusive. You have the the cost of college rising faster than my investments, combined with a nearly 300% increase in college graduates, combined with abysmal wage growth…all blended together with parental pressure to go into DEBT for a degree that no longer has the prestige it once did.
And this is where the issue begins…most millennial are starting out their career IN DEBT, with more interest accruing every day, with almost non existent wage growth…and I’m not surprised to see how their net worth has dropped 34% since 1996.
SECONDLY…we need to address the inefficiencies of making money.
From what I see, we’re slowly entering an era where jobs are much less applied for…instead, they’re created. With the prolificness of the internet, I’m seeing more and more people opt to start their own businesses rather than work for someone else.
And by following that, people are overlooking the obvious:
That starting your own business, or pursuing a trade, or honing a skill can have a MUCH HIGHER ROI than a 4 year college degree.
Now I understand this is a very one-sided argument…I know what people are going to say.
First, not everyone can be an entrepreneur.
I agree. If becoming an entrepreneur is not your thing, don’t do it. If you prefer something more practicable, a steady paycheck might be better choice. However, be VERY considerate about where you go to college and how much that costs. Perhaps consider 2 years of community college and then transfer to complete the last 2 years to save on cost.
OR…look into a trade school. There are PLENTY of trades that will ALWAYS be in demand that make a LOT of money.
Contractors, electricians, plumbers, welders…even just learning how to code could be an invaluable skill.
Second, I’m sure people will say there are benefits of college that aren’t just financial.
I’m not here to dismiss that. I’m sure there are plenty of social benefits, and just overall life experience benefits of going to school that can help considerably – but I also believe there are JUST as many, if not MORE benefits of not going, and being FORCED to put yourself out there and make things happen – otherwise nothing will happen.
At the end of the day, it’s really just about evaluating both the ROI of a college degree from the financial standpoint, and the realities that making making in 2019 is changing dramatically. When you can make more in a MONTH than a doctor makes in a year by selling wolf mugs on Facebook….then you know things are changing up quickly.
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness@gmail.com
Here’s my second channel for anyone who hasn’t subscribed yet! https://www.youtube.com/channel/UCa-ckhlKL98F8YXKQ-BALiw
@Zoltan At my company we do on the job training. Our initial training seminar counts towards college credits. We teach a variety of skills here that can be applicable in the market place. Now that’s not to say college is 100% worthless, I mostly just think that most people go into college without a plan, and failing to plan is planning to fail. I don’t think everyone should go to college, and I think most degrees could and should be learned with legitimate companies on the job. Unfortunately most companies don’t want to invest in their people like they should. I’m not 100% sure where I’ll be or my other students will be in 10+ years, but I’ve seen people who have taken the experience of working here and applied it in other career fields and were massively successful.
Do a video on buying houses at auction.
@Graham Stephan I’m in welding school right now and when I get out I will be making at LEAST 20 an hour but the good ones make 40 and up. Compile that with a 50-60 hour work week and the fact it only costs about 5 grand to go to school and I’d say that’s an excellent ROI. Nowadays the trades are looking better than college. It’s a one year course so literally a 19 year old could be making about the same as a college grad after one year but that kid will have 3 years work experience by the time the college kid graduates and starts at what the other guy started at 3 years ago.
Saved up for college by fixing my family’s car and house. Still kicking myself a bit for not working hard enough and having mental health problems. But I am debt free and have been investing 40%. Thanks for the tips.
I dropped out the same day my federal grants dried up. I had $600 in Debt. I paid off my debt for school and cancelled my hospital debt with cunning and tactful letters. Now I’m debt free and looking at saving 90% of my income after tax in dividend stocks individually. Currently every year assuming (bac) bank of America price doesn’t rise my dividends will buy 2 shares which will compound even further.
No student loan, miltary service have taken care of it , no wife, no girlfriend, no children. Just me, working and investing into mutual funds saving my money by renting a room for cheap. Also Real Estate is no longer lucrative, way too many people are doing it and blue collar trade turned into low wage paying job thanks to illigal aliens that willing to do job for pennies
I’m currently setting up a dropshipping store all while my parents pressure me into college and school is becoming overbearing. Wish me luck.
*Laughing in Australian*
Government controls the costs of our universities at around 10k per year, our student loans index at inflation, and we don’t need to start making payments until we earn about 50k.
Did Tech school. Associates in Network Engineering. A quarter of the costs and hands on, career focused classes.
GP didn’t finish this one bro. You made a video like this already. Excited to see the next one
Steamfitter and plumbing union is starting apprentices out at $50000 a year! Imagine starting at 18. You will be well ahead of the typical college grad in 5 years. And you can easily be making $100000 in 5 years. The trades have seen the highest wage growth than any other industry under Trump!
Where did you get that jacket? 😎
I think that the root of the problem is the k-12 teachers that shouldn’t be educators. They cannot handle or have the patience or tools to deal with kids who can’t focus or needs extra help to understand something. I think we should move to a different school system where, all students must get up to certain levels before being admitted to their degree classes. So when they get to college, once they choose their major, if they still aren’t quite at the college level, then they should have to take all of their general education even having to get up to say, calculus and physics, before being able to continue to their degree classes, that way once they get there they should have no problem in transferring to a 4 year, depending on what their end goal is.
I feel like you left out one important trend. Unless you create your own job, the difference between jobs now than in the past is that now a lot more jobs have a bachelors degree requirement to even be considered. I don’t think you should be blaming this drop on millennials but on greedy corporations who are paying less and universities that are charging more. We need a more educated society in order to progress and formal education is a big part of that.
Another great video, Graham! Good work!
On the mark, Straight to the point. I always love your content.
DO both. Once you feel your side hustle is doing good, reduce the college units to focus more on the business.
I hate this blanket statement stuff.
A 130 thousand dollar liberal arts degree is really stupid.
Going to a state college for a CS degree that costs under 10k a year, while living at home and working part time to pay for it is smart.
A blanket statement about college is like a blanket statement about real estate. Some stuff will make 2% and some 20%. If it’s over 10% then consider it.
Most trades are truly suffering now because of the brainwashing to go to college. When I decided to go to school, I looked at my return on investment. I went to court reporting school. I got out and made about $30K first year in the mid-90s. Now I make around $90K or more. I paid as I went, no debt. Figured if I didn’t like/couldn’t do court reporting, I’d learn to be either a plumber or an electrician. I’m not knocking college, but it depends on what you want to do. I’ve always been super busy, always loved my work, I’ve rarely had days off.
Amazing video!
University (college) in Greece is free. I live in Greece should I go ?
Dropped -34%? So it increased 34%?
College was the worst decision I’ve ever made.
I’ve learned a ton from YouTube People just don’t know how to use it and all social media for that matter.
Graham, bud, the internet didnt exist in the 70s and 80s
1:44 an yet these universities aren’t paying taxes to support financial aid while sitting on liquid assets from donations. #Bernie2020
8:12 except for brain surgery; won’t trust anYoutube doctor 😂
Want a lucrative career without a college degree? Become a licensed insurance agent…average salary out of my office is over $200K a year (one guy out of my office makes 750K a year) – and you have complete freedom to run your biz and work independently. Many people hate insurance but if you are open to it – I have seen my own career grow to 6 figures in 3 years…starting at nothing! I specialize in Medicare but you can figure out what you like the most or go with an organization that just takes overrides on your biz – and not out of your commission. I actually have a Ph.D – and only got that because I was able to on the side and my love of learning…a college degree in this field is NOT necessary or needed.
I’m a Ph.D. student and 100% agree with if everyone is special then no one is an analogy for Bachelors degrees it’s EVEN starting to happen to Masters degrees to some extent I feel.
I’m a cam model that also goes to school for a back-up plan, and I make more money at my age(23) than most people that have gotten their masters or have been in long-term careers. The only issue I’m worried about is the longevity of being a cam model, so I am going to school part-time and I’m going to start interning to build my resume for when I age out of the business. Btw, I am pretty private as far as hiding my face in the videos I make, etc for those of you that want to say I wont be able to get a job anywhere after I leave the industry.
Totally agree! And as a mom of little kids I’m thinking of homeschooling for the same self education you mention. From my research school, grades, tests really are too structured even in the early years and self directed (real life kick in the butt) education from the start is a great way to learn especially if the kids want to be entrepreneurs. Even the socialization aspect people ask about I think homeschooled kids actually talk to (network) in the readl world with other people of all ages and life experiences instead of kids in the same age in a classroom where the teacher says not to socialize 🙂
I’m in show business, as a stage hand I get to work with people half my age that make the same $ as me. However, they’re starting their carrer with $50k + in student loans. The education system is broken, government loans are ruining the younger people trying to make a living. I’m not surprised that this topic peaked a lot of interest from your followers.
You should sell a course like that
Hey Graham.. Is this like a turn for the worst in the world.. If you making money on stupid stuff is better than a doctor that saves lives.. Does that mean our health care and things like that will go down big time..?
You’re literally addressing situation in Poland. 46% of people aged 30-34 with masters degree, low wages and high emigration rate. Construction worker gets more paid than a surgeon… But hey, the government gave more “free” money.
every like, dislike, comment will be benefit for your video…
100 shares of avocado toast
You just described Khan Academy.
I am watching most adds because I like your channel … Hahahha is not sacarsm
Trust me u didn’t miss out on college
Is that a Michael Kors leather from Macys? Just got the same jacket on sale for $44.
Great video! I agree with all of this
This guy is way too smart for being in his 20’s. YOU MADE THE RIGHT CHOICE, BRAVO. I lost years of my life to the prison that is college. And infinitely more in terms of motivation/momentum. Here’s a cost you haven’t calculated that other Millennials need to hear: the gain/lack of a positive feedback loop when applied against time. Unless you have a specialized career track (i.e. surgeon, scientist, or professor), that requires college specifically…many students will waste away becoming apathetic and confused. This is in direct contrast to being in the real world and learning real things, and getting real-world feedback (which absolutely needs to include money). What you need for success in life is to find a real-world positive feedback loop, one which feeds your motivations and your finances. This is the foundation of your confidence, and expertise. When you enter College you’re filled with amazing optimism and energy. But likely you will waste much of that jumping through hoops to get a piece of paper. Even if you find success in College, you’re only doing it inside of an artificial world of requirements. When you get out into the real world, you’re just starting over from scratch with a not-so-useful degree, probably with debt and with far less momentum than when you started. Basically instead of adapting to real life, you’re adapting to a fake ecosystem, and the drain on your finances, motivations, and momentum can be immense. You’re absolutely right about how this affects wealth, but much more damaging is how it affects your momentum/motivations.
I have a biology degree and work in an environmental testing lab. Very low pay (high 30K -40K) – biology degree in itself isn’t ‘specialized’ enough even if the majority of classes are focused in one area. Unless you do internships (that pay you NOTHING and are in the middle of the day M-F usually), it is very difficult to get the real world experience to break into the areas within the biology field that you want to be in. If you want to stay in the lab setting long term, you have to go back to school. Everyone that is in a position of authority in labs have doctorates. Obviously these things aren’t communicated to you when you are in school or doing research on all of the awesome careers you could have with a biology degree . . . Pretty disappointing. So yea – I can definitely see and understand why net worth is low.
This video is why Apple is really going after you. Schools are their biggest buyers. And you are talking about the cancer of collage and how they sell their products ” education ” at a cost no one can afford knowing they can’t declare bankruptcy. If you give 30k credit to 18-year-olds cash. Say from a payday loan. And that loan couldn’t be discharged they would make this a crime.
I’m a 23 year old making over 300k per year knocking on doors selling pest control. I’m a college dropout because school was slowing me down and bringing me debt. Yet, people still look down at me haha. That will never stop, do you and do what will make you money that can work for you 👌🏼
FRICKING AVOCADO TOAST
Just to validate your comment about learning from youtube/google is legitimate I have spent 2 years of constant free learning and application in the gym/kitchen to figure out how nutrition and fitness eventually lose 40 lbs in 5 months. Definitely the advice with “investing time before you invest money” holds true. Be skeptical, continually learn, and always remember the long game with consistency over intensity. I would love to follow up on this comment to see where I would be 3-5 years from now after voraciously consume content to figure a method to work for me to become financially free.
I graduated college in 2011. Thankfully, between working, qualifying for grants and staying home with my parents, I graduated debt free. I know this isn’t the story for most, but I’m glad I did, because so many of my peers have debt and to top it off haven’t had much luck landing a job because my field is so saturated. And the ones that did find a job, the working conditions are so morally disturbing because we are so easily replaceable. They can’t even quit because they have those student loans hanging over their heads. I believe that with job markets being so unstable these days and wages staggered, everyone should at least have a side hustle that should eventually turn into your main hustle. I wouldn’t even think of forcing my kids to go to college to make a living. Making money is not dependant on a degree! This is coming from a college graduate.
Can you make a video on networking and socializing as an entrepreneur? After I graduated early from hs to pursue my business endeavors, I’ve been feeling really lonely like you were. I consider it a sacrifice but I’d love to hear your thoughts on it.
Thanks Graham
The default fate is also at 10% on student loans
Graham, you are absolutely correct and you didn’t miss out on anything in college.
My finger is tired from hitting the skip button on all those useless commercials, it makes is hard to hit the like button.
this is good as a class in college
when you were talking about internet education I was that much waiting for you to sell a course.
thumbs up for not.
You missed another thing. People now that get an education have to compete with millions of foreigners that can even be preferred such that the great job you thought you might get is now flooded with H1b workers that are trapped for a decade by the company.
Good Stuff
Thank god i get paid by government to study in college😁
Otherwise i wouldn’t have made it.
Did you get a kitten to increase likes? Smart
College didn’t get watered down persay more that more people attend without being academically prepared for it so they scrape by even if they manage to get A’s and don’t succeed in bringing their skills and knowledge to a higher level. So it ends up being a waste. It would have been a waste for Graham to attend college if he truly did have a high school GPA of 1.9. It would have been 4 year struggle bus with no extra time left for the stuff that really adds value in college. The extracurriculars (related to your majors not parties) Internships or research and building networks with professionals and people inside your industry.
You shouldn’t come out of college as an entry-level worker but as a young professional.
I think the fact is, if too many people are doing one thing—the market value drop. Let’s say, if 80% of the population is “trying” to start their own business—we will have a crisis.
I love your teaching, but our finance system is an ecosystem. The business stay afloat because there are consumers who consume the essentials and you-really-don’t-need-that kind of things.
But yes, college cost is outrageous. Just too outrageous. However, the robots are coming. We need to get this college thing solve before going homeless because they can’t afford to either 1)don’t have the money to get a trade or even just simple college degree 2) if they take out loans, they are screw 3) can’t keep up with the college requirement and pace.
Kitten pictures🙂
Didn’t go to college. Going to make between $90,000 to $100,000 this year
YouTube curriculum? Check Khan academy
Damn boy, I told my father exactly this. He did not agree though, but I hope we will see a change in the narrow mindset of the boomers haha.
Nice Captain Kirk jacket
college has become a ‘must’ that doesn’t impress much, people now pay thousands for CFA, IELTS aтв other expensive exams
I 100% agree with this video.
I dropped out of a college and then came back later during that period enrollment dropped over 30%. A funny thing happened, the professors just started passing people. Now I know lots if people with Bachelor’s degrees working in retail. I might be one if the lucky ones but only because I busted my ass when I came back
Internet in the 70’s 80’s 😆 non existent
Cause they never invest, only spend spend spend
I’m 27 and did both I taught my self to code after doing a degree at university without knowing what to do and got my self a job as a developer on an average wage.
I work with quite a lot of people that started learning after high school starting when they were 5 or more years younger (2 for six form 3 for university) and without 20k in student loan debit.
I also know some guys making 2-3 times the national average wage in trades and starting at a young age.
I save and invest half my wage and have a side hustle but I have an awful lot of ground to make up due to my slow financial start.
Odd that he doesn’t put a link to the original article.
I wonder what the average risk/chance of defaulting student loans is; there must be some kind of breaking point after x years when graduates/dropouts have no chance of paying their debts. If student loan companies are permitted to continue operation despite many of their customers being at risk of this, they would be “too big to fail” which smells like a bubble to me.
It depends on the degree studied. A lot of people in our generation do find a university/college degree to be worth it.
I’ve never understood why I needed to take Biology and Spanish for my Journalism Degree… They should make you ONLY take classes you actually need, not these bullshit filler classes just to waste your time. Everyone cheats in college anyways, they just want to pass and get out.
the more you job hop, the more your self worth drops, that’s just reality
that’s the cool thing about being a youtuber, you can claim you’re a rich real estate agent and morons will believe you in the comments below
Huh
@Graham Stephan did i stutter? or are you having melinnial issues?
do not open the floodgates of youtube diving into academics graham, the world isnt ready XD
I was pressured into college i did engineering. I hated school yet my parents and teachers acted like it was do or die. its facinating how we presure people to compete in an environment that goes against there being. I was astounded by the in inefficiencies in college, spending 2hrs in one lecture with 80% of people not paying attention. luckily i’m from Ireland and education is free you guys are insane but i understand the pressure.
Most of my friends have college degrees and feels like all of them are broke right now, settling for retail jobs, living off parents. Its sad
Boomer parents push 1982 era advice about college; their kids graduate in debt and compete directly with cheap imported H1B scab labor for the same jobs. WTF?
I’m offering a bit of constructive criticism here. 8:26 Google and YouTube are not reliable sources of information or education. They are merely tools to find best sources of those. One has to be able to discern all the crap that is out there. Many are just not able to do it and honestly there is a lack of patience to. The education system was built around the premise of researching, analyzing, and disseminating information and building critical thinking skills…real world skills as you point out involve going out there and working. I worked in my industry the entire time I went through school. That said the brick and mortar situation no longer servers imho except in the case of labs and related work. Just like with many stores it is just too expensive to keep the operation going at a reasonable cost. One idea which you alluded to (and is in fairness quite mainstream) is to have online schools (not just classes) that rent out spaces as needed or perhaps own a small space as headquarters. I know this is a bit long but I’d like to see more real solutions to this issue (i.e. if pursuing education do this first…) mentioned on this channel. After all, the doctors we depend on from time to time don’t really have an option other than medical school.
My net worth is $500 and my monthly income = my monthly expenses. I need to find a side hustle
Stephen: i would love to see a class in how to SMASH THAT LIKE BUTTON
Bryan Caplan’s “The Case Against Education” is a great book to see the cost and problems with education financially and lists the parameters that make college worth it).
college can’t teach all that.
The ‘professor’ don’t have enough time/reason/willingness.
Also students don’t take lessons seriously enough, they only do the bare minimum.
Collage now is just a party house where children escape thier overbearing parents.
I respect that you told us that you didn’t go because you didn’t get in. There are plenty of people who pat themselves on the back for “being smart enough to not go,” when really they just couldn’t get in.
Another point is you can’t even sell your college degree.
If it drops -34%, doesn’t it grow by 34%? 😛
Just kidding, great video as always!
I feel like there are some benefits of not going to college but I feel like there is a population of students that you leave out. There are some students who get free college and even get paid to go to college (receiving refund checks and etc.). Some colleges even pay for trips especially if you are dedicated to a club. And this is just from my experience. I know this is not true for everyone but there are still people who need to go to college and there are many people who will have no reason to go to college. I think there should always be a balance and we have just reached a point in time where it has leaned too much on the college side.
Y our mom lollolollollolo ndfkjgalhfviuAS
“The cost of college is growing faster than my investments.” 💀💀💀
Community college is great. I was able to pay for it with just working in highschool.
I met my wife in college, as well as many life long friends.
Man I wish I could get a law degree on YouTube
I wish I heard this before I went to uni
One of the biggest reasons why colleges have skyrocketed in price is because colleges keep building new things and giving students free crap. It’s not just something I have observed either. There has been a documentary about it too. If colleges would stop building new buildings and stop just giving away free crap then they wouldn’t need to increase it so much. My accounting instructor is fairly high up on the totem pole at my university and he has even told us that our college is nearly in the red every single semester….. doesn’t make much sense. Funny how you talked about watching YouTube for education because where I watched said documentary was in my marketing class. Our class time of 1 hour and 15 minutes was used to watch a YouTube documentary about why colleges are more expensive.
Wolf Mugs hahaha
Let me clarify, I’m a Junior in High School.
This year, I stopped paying attention to school. I used to be that straight A’s student that everyone wanted to copy from. I focused on my grades 24/7, so far so that I would spend nearly all day in my room studying! Now, I’m an all D student. I started to watch Graham a few months ago, and from him, I’ve learned so much! He lead to to think outside the box. I thought to myself, when will I ever use the calculus I’m studying? When will I use electrical engineering? When will I use advanced biology? It doesn’t apply to any of my interests. Recently, I’ve started to tech myself, through google, how to learn a trade that my dad is skilled in. Refinishing hardwood floors.
Though I’m the type of person that doesn’t likes to get my hands dirty, I came up with another idea. How about starting my own business? Again, through google and Youtube, I taught myself how to build a business and how to design a website. Currently, I’m in the finishing stages of publishing my website and through means of business cards and online advertising, I expect it to be a fairly successful, due to the fact that hardwood floors are nearly everywhere! I didn’t also create an opportunity for me, but also an opportunity for my father. He will now have a safe and secure job which will hopefully pay him well (hardwood floor refinishing is quite the business). He will no longer stress about having to work at night and in the day, sleeping a bare minimum of 4 hours, if lucky.
Also, I’m very interested in real estate. Graham opened a new opportunity for me to seek. Before Graham, I had no clue the variety of taxes there are! Crazy to think that school would just throw that out the window. I’ve learned how to manage my money, spend less, and save! Followed by many REAL LIFE tips and tricks. Also, that $0.20 coffee is really saving me quite the buck (before I was spending $2.99 on TimHortons coffee).
If you’re reading this Graham, thank you.
Cool*
I see people who do well financially who both went to college and didn’t. I also see people not doing so well who both went to college and who didn’t. Going to college, learning a trade, getting a certificate/licence, or just work alone, can all be avenues to success (or not). Just avoid debt and make sure you save and invest all you can.
It’s true over borrowing student loans is a real problem. However, in your case of succeeding without a degree is more of a survivorship bias meaning not having a degree is not the reason why people would succeed.
I think you have the idea of education system wrong. School is there to teach you how to teach, that’s what they’re specialised in, teaching. They’re not specialised in business; hence, you don’t get classes learning how to be an entrepreneur. That’s how I see it
🪙 gold!