College is Gamble

Going to college has a lot of risks which aren’t discussed.

Why is college a gamble?

What should you do in light of this?

Join The Our Shawn for the Future Done Right(TM) Show as we explore what we are seeing and what we need for the future.

Here is the YouTube video:

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Below is a machine transcript of the interview —


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Hey everyone is Dr. Sean, welcome to another edition of future done right. When we look at the future of Business and Technology what’s happening.



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And how we’re going to evolve business over time. So today we want to talk about college be a gamble. And I think it’s very interesting.



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That the marketplace is shifted, you are moving into your accountability and self accountability, as we talked about other context on this show.



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And college is no different. But it’s unique in some way so you gotta dig into that song today.



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Those of you don’t know me as well. I’m Dr. Sean are Sean McBride and a corporate lawyer by training.



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Also licensed CPA, I work with people on ownership control that strategic issues, their business, either as an attorney.



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Or as an advisor. So we’re always looking for what’s happening in the business and how we can help make that business more successful. So



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Today we’re going to dive into issues we’re seeing with college and the risks if you bear with us, you’ll have a better understanding and maybe a new understanding of how to think about college



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And the risks associated there with we’d love your comments to drop them wherever you’re seeing this was our show. McBride on LinkedIn.



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Our shop McBride fans on Facebook, a future done right on YouTube, wherever you are viewing



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drop those comments. We’ve got a comment contest best comment of the week gets invited on the show. So always be looking for your comments and bringing those elements out



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So let’s talk about college for a bit college is sold as being a smart investment and a easy choice. Every kid should go to college will be here right finish up high school



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Get your education, then move on to college, get your degree and then think about what’s that up. But for a lot of people. It’s not that simple.



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College has a lot of costs associated with it, along with debt. Generally most kids up to the first some type of debt in order to go through college. And what’s different in today’s day and time versus historical days and times is the guaranteed outcome.



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There was a time when you go to college and you would know that you will come out the other end with a degree, you will learn a lot and you will be able to help people.



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But I don’t think that’s the case anymore. You go into college and you may come out with unable to get a job. You may not know what the



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What the certainty of the outcome is you may not know that you are able to



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Get a job and and that’s really where the issues coming up today is employers don’t view College, the same way they did before.



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A lot of employers have been frustrated with college graduates, not being able to think not bringing the skills.



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And we’ve also, as we’ve discussed numerous times on the future done right show is looked at the idea that



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People want skills or demands when employers are hiring people they want a skill that can be done now they want a solution that works immediately.



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They really don’t want to be waiting to work. People to refine their skills to develop their skills to get better. They want to get something immediate



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And unfortunately, the college system today tends to work on broad skills on general ideas on things that may have long term benefit, but may not necessarily have



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The short term impacts that employers are looking for more, more. It’s about what can you do for me. Now, how can you add value. Now, how can you justify your existence. Now,



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Versus what will you be doing in the long term. How will you be making things better, how will things be improving. So it’s really a different mindset.



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Around employers and employers don’t invest in employees, like they used to. It used to be you would come work for an employer, many people in a prior generations expected to work with somebody for 30 years, not the case anymore.



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Nowadays you can work and you know turnovers, very high. People can meet come and gone and a year or a couple of years.



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So the incentives for the employers to invest in employee training are very low.



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So you know college degree usually means you’re ready to start learning and start learning an industry growing into a professional career.



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But for most employers. That’s a big gamble to bring somebody in there. So, in turn, for the college student. It’s a gamble, because you don’t know we’ve had certainly had economic downturns in recent past.



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Where college graduate coed school and had a hard time finding a job because the marketplace wasn’t demanding their services.



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So the era of college, being a safe investment is over. The other thing that may come up for some kids some college students and I call kids. But I mean, people go to college age.



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Another issue for that college student is what are the opportunity costs and we’ve certainly seen many great companies get founded during that period that other people would be college students. So we’re talking about Facebook.



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Microsoft. Many of our big economic drivers have TODAY WE’RE FOUNDED back in the day when we had



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Colleges and, you know, other institutions were, you know, there, but people were using them. Alternatively, they went there, they learned a little bit. And they built something bigger than what the educators and what the system was able to do



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So for a student, you know, it could be a very real possibility that spending time in college is costing them opportunities to be other places, and in some cases may actually hold them back, getting the structures, getting the thinking getting trained by professors



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Professors are often struggling to launch businesses. Right. Many some of the adjunct professors may be running successful businesses on the side.



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But many of our college professors today are our alumni of businesses or alumni of consulting firms and they may not have that same mentality of a business owner, even though they’re teaching business ownership. So for some select college students. They may actually be in a worse position.



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By going to college and furthering their skills and they would have been if they had just



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Not at that school and built a business on their own. With that school of hard knocks. And that trial and error learning, which is ultimately inevitable anyway.



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It’s very rare that we’re going to have a situation where somebody is going to learn how to run a business without going through the trial and error.



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Of testing and refinement of learning of growing. So we need to get our students thinking differently. And we need to think of college as an investment.



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And investments have risk associated with them. Not every investment pays off. So that may be one of the fundamental lessons here today with college and college being a gamble.



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Is there is no guarantee a certain outcome. Just because you go to college, doesn’t mean you’re going to get that job, or you’re going to have a career or you have a high earning straight



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I for many college students dancing frustration, we’ll be talking more about student loans student loan debts and the thoughts.



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Here on the future done right show coming up and I note that so that you can get that book market to get a You can see it’s our past episodes on debt.



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And student loans and you’ll also see it will have upcoming episodes on these on these issues, including bringing in the student loan lawyer.



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But there’s we’ve covered a lot of student loan debt is not repaid as really not repaid by cheap groups.



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And we’re expecting a 40% default rate by 2023 according to some sources.



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But two groups are not paying their debt. It’s those that go to college for a little while and then drop it out and they don’t get the reason they never get that extra earning potential



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For being a college graduate those folks tend to not repay their loans. And then the second class of people is these graduate students who may go out and study a lot. I get a lot of certificates degrees and other thing, but



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Not actually be able to monetize that sufficiently to repay the debt or have other expenses of launching their professional practice or rears or other things.



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That hold them back from repaying the low so college is not a certainty, we need to run our young ones are college students. I mean what analysis of risk and reward and is it good.



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I remember in high school when I was facing the decision for college and of course I went on with the college and I went to law school. I went to a lot of college.



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But facing that decision. Nobody brought out a spreadsheet, like we would for financial modeling for a business decision.



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College is going to cost you X dollars, you’re going to have a why percent chance of making



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Z dollars and you’re going to have an 80% chance of making big dollars and you can have a scene percent chance of making the dollars.



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And this is what your possible outcomes may look like if you go to college. This is what it’s going to cost, you’re going to incur these expenses.



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Now you have to make a decision whether this is something you want to do or not that is really the type of analysis, we should be having with our students today, we should be working through that with them.



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Just like we would any investment decision, just like buying a car buying a house. What is the upside. The downside I from the educational system. I see very little focus on the downside. I think that’s a real risk.



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That we’re not talking about there is a downside. Many people go to college and don’t graduate. Many people don’t get to the greens that they anticipate



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Many people don’t get into the marketplace, the way they would hope. These are all risks and very real risks that should be internalized and the cost of which should be understood by the students as they’re going in there.



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So college is not a safe investment. What’s more, the workplace may change while you’re in college, so a student may spend



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Four years or five years for some students in college, and by the time you graduate. The workplace no longer looks the way it used to.



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So you build for a degree that doesn’t matter. Let’s do middle accounting. I have a CPA. I do a lot of work with CPA and it’s somebody that are people. I really appreciate



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If you zoom in on a CPA these days there’s literature out there now and accounting today ran an article a few weeks ago where it was proposed or speculated



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That a large percentage 97% of auditors would lose their jobs or become irrelevant in the changing marketplace, if we’re talking about that percentage of people losing their jobs and having to start from scratch. Where are we really going with this. What does it really look like



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If you build to getting an accounting degree and becoming a CPA and be engaged to be an auditor, which, you know, for



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Your typical accounting student is going to be a five year journey. Most, most states now require five years of education. That’s your college degree plus some additional credits.



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They don’t really specify how you do it, but a five year journey. And then you have to take an exam when the end. So you’re talking probably a six year process for most students from start to finish.



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To graduate and when you need graduate on the back end of college of the college and get your CPA certificate



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The industry may be in terrible turmoil. A lot of people are projecting that accounts are going to need to change their skill sets and change what they’re doing. Yeah. Most colleges and institutions are going to educate



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Our young people to come into today’s system, not tomorrow system. So we really need to get a different thinking about this.



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And we really need to think about skills or everybody, whether it’s a person that’s coming out of high school that’s training for the future and looking at what their job prospects are, whether its existing people



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What skills people. And when I say existing people. I’m sorry that people already in the workforce. What skills do we have now what can we learn how can we deliver real value to our employers.



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And more and more employers are not putting the same value. They used to put on college degrees. I mean, there was a time where that stamp of approval.



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That college degree meant that you were certified as being ready to come into the workforce.



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And more and more employers are finding that people with that certification that stamp of approval or that transfer from college.



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Are not ready to come into the workforce. They’re not ready to be today’s leaders, they are



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Lagging and skills they do not have those workplace deliverables that they would desire. Otherwise, so it can be a real issue.



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Of whether that happens that stamp of approval and plus, I’ve heard many employers question whether their students are able to hit the ground running.



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Most are now say, you know, give me somebody who’s smart and these knows how to learn. Do you need know how to code. Now, if you can code now.



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You may be in for a job and a high earning job, many, many programmers earning over $100,000 a year right now, do not have college degrees.



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They just know how to get code Don and employers have really looked through that and figure out the best what matters. It’s not the degree. It’s not the spending four years in a classroom. It’s getting those skills on demand bright people can learn how to deliver the skills.



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Whereas some people will go through the process and become great at paperwork in college and not necessarily be able to get it all.



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So we need to think more critically and this probably means two sets of reforms.



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students and their parents should be looking critically about whether they should be going to college really making an investment analysis. Now this investment analysis may change the school you go through



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It may change whether you go to school or not, or how you time the school right i mean working and building to a degree is also a possibility right run a business and go part time many different ways to slice it, but we should be pretty a critical eye to the college process, as always.



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And I think was a student loan debt bubble becomes a problem. And I think it’s going to here in the next several decades. I’m recording this in December of 2018 as a student loan bubble becomes a bigger and bigger problem and really does.



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Explode a lot of colleges are going to have to figure out what their business model is they’re not going to be able to rely on the debt bubble, the way they had in the past are not going to be able to look



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To always have that certainty that all these student loans are going to get repaid and the federal government may start putting questions and issues around it so



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If you’re in the higher educational space. If you’re a professor or if you’re higher up than a college. It may be time to question



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What is your future look like and where should you be going and what should you be doing with today’s college student. So, lot of big issues sitting out there right now really need to think about this really critical item.



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I welcome you to join the discussion at future done You can also go the future done right YouTube channel would love your comments about what you think about college



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Am I way off base, maybe, you know, some professors or other people that think that maybe what i’m saying is a bit crazy and at the educational system is working just fine.



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I would love to hear all types of feedback on the educational system. What you’re seeing because we work together better as a community.



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So I remind you drop those comments. Also, like, comment, share, the more that you like, comment, share the search engine. See this gets it out to more people, more people can participate. So go ahead and do that process it out to more folks get more people involved.



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You’re looking for some interns to work with us to do some research to dig into these issues to become leaders in the future technology and business.



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And you can check out those opportunities at planning done right comm slash interview. Check it out. Let us know what positions are available or what you’ll see there that there’s positions available apply if you’re a motivated person want to be part of the future economy.



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See what’s there and we will look forward to seeing you again soon on the show at future right on the YouTube channel also hate yourself on the bat.



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Back you’ve done great work. You’re getting in front of the issues of today. You’re becoming a leader.



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By shooting this video by liking, commenting, sharing you’re doing the things to start the conversation tomorrow and to also be that leader. So I congratulate you on that. I look forward to seeing you on the next episode of feature done right.


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