Rob and I might never save another dollar for our kid's college fund. Are we crazy? Before you judge, check out our reasons.
What was the most important invention of the twentieth century? I would argue that the single most influential invention was the integrated circuit. Moreso than any other creation, the integrated circuit has changed the way that your life and mine work. Integrated circuits made high powered, low cost computing possible. They are a relatively basic invention that has changed society, and I would argue that you should view your money like an integrated circuit.
A few days ago, a person that I follow on Twitter (@Stevenomics), decided it might be a nice idea to state a controversial opinion in 140 characters or less. Bold.
When I state controversial opinions, I use lots of words. For example:
Women Shouldn't Date Underearners
Unsolicited Advice to Low Income Earners (Including to focus on earning more)
If you don't like your job, Quit.
Blame your parents for all your problems
I hope my husband outearns me one day.
We would be better off if I ran the economy
You'll never build generational wealth
Compound growth isn't magical
Okay, those statements don't have a lot of words, but I've linked each one to a blog post. If you want to get fired up, go ahead and read them.
@Stevenomics didn't link to a blog post, but he said something like (I can't tell you exactly what he said because he deleted the tweet), "Call me traditional, but I think a man should earn enough to provide for his family. Wife's income should be bonus."
Call me traditional, but if you're going to say something about gender roles on twitter you better be willing to back it up. However, I think @Stevenomics sort of has a point. Let me explain.
In my previous post, I discussed suboptimal equilibrium that occurs when everyone would be better off without degrees, but individually we all choose to get degrees. In the circumstances I outlined, I forced everyone to assume with me that college is a credential or signal. Essentially, the demand for college graduates is higher primarily because earning a college degree proves to employers that a prospective employer can do hard things.
However, I think that's the worst way ever to think about college. In today's post, I'll explore how parents can help their kids develop career skills in the most cost effective manner possible. Hint- It's to stop thinking of college as a credentialing signal.