Friday, October 18, 2013

Is Education A Good Financial Investment?

I am a teacher. I teach. I am part of the educational system. I motivate people to learn. However, it came to a point in my life where I wonder if education is a good financial investment.

So, before DepEd bosses and CHED Commissioners lambast me in this blog post, I urge you to read the whole blog first and read what I think about this question.

It takes six years in Elementary, four years in High School, and an average of four years in College to finish a complete and formal education.

Assuming that a person went to a public elementary and high school that would mean he got his education for “free.”  Just exclude all the transportation, food, miscellaneous, and other requirements that teachers require per subject. Education is for “free.”

Going to college is on a different level. Assuming that each semester costs P25,000.00. Eight semesters would mean spending P200,000.

Now, let us talk about return of investment. Return of investment in layman’s term is “How much profit do we get if we invest in this project?”

Now, in Iloilo City, the minimum wage is P277.00 per day. If there are 25 working days in a month, that would be around P6, 925.00. Is P6, 925.00 per month good money to finance the needs of a single person? How about if the person who works is a parent of five?

Also, P6, 925.00 is the gross pay and not the net income.

With all the expenses that a person needs to have everyday which include food, transportation, rental, electricity, and water bills, I don’t think P277 per day would be enough.

I teach. I educate people. Education is important. However, as a financial investment, education is NOT a good financial investment.

If you think that you invested much in education and are not getting the right return of investment and you would like to find a way on how to overcome this, you can come in contact with me. You can comment on the comment box or you can send me an email.

To Your Financial Success!

Lornajane Altura


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  1. I actually never thought about it. I thought that education is a financial investment but still I do believe that education in any form is important and logically can be measured as you said above. But if you ask me the benefits you get from education are multiple.

    1. Thank you for your comment :) Education is a good investment but spending P800,000 and earning it back for another ten years is not good ROI. :)