Higher Education Is A Financial Liability (WEIRD MONEY)

– Have you ever seen a rich teacher? I have this vague
recollection of a teacher in elementary school driving a Corvette, and this was in the 80s,
when owning a Corvette meant that you were just super cool. Unlike today, when it usually means you’re an elderly dentist
with a mail order bride. Robert Kiyosaki always asks, “What did school teach you about money?” And the answer is usually nothing. Depending on where you live, you’re more likely to learn about Jesus riding a dinosaur than managing money. And I’m looking at you, Texas. Regardless, we don’t really want schools to teach you about money. Why? Find out in this episode of Weird Money. (upbeat music) Hi, I’m Derek Harju, and in this episode we’re gonna learn that teachers basically have zero wealth
building experience. And if they did, most
of them would probably retire from teaching anyway, thereby eliminating the pool
of qualified instructors. It’s a conundrum or a catch 22. I never read that book. Teachers shouldn’t teach wealth building because it’s simply not in
their area of expertise. It’s like learning mixed
martial arts from the Amish, or learning particle
physics from Gary Busey. I wanna be clear, teachers are amazing, but right now 20% of all
teachers have to work a second job just to make ends meet. But what about higher education? Well, today 70% of college students graduate with crippling debt. Over 44 million Americans hold nearly 1.5 trillion dollars in student debt. Now, if you know how to use
debt it can be an amazing tool. Unfortunately, 80% of all college degrees never pay for themselves. So if we’re still operating
under the tool analogy, most of you are using a nail
gun to clean out your ears. Most student loan debts do not yield a job that pays enough to offset the expense. It’s simply not a cash flowing investment. So the average stint in higher education is a liability, not an asset. One in three college
graduates, that’s 34%, are under employed,
meaning they work in jobs that do not require a college degree, or any real expertise of any kind. I personally used to work
at a minimum wage job in a department store
with a guy who had a PhD in world history. That’s not a joke, that
happened, and it’s getting worse. If your goal is to be wealthy, I’m sorry, but your best bet is to just skip school. Most of you don’t need it anyway. You’re passionate about
art history, awesome. Get a freakin’ library card
and audit some courses. You don’t need a six figure
degree to study humanities. See, this text book, see this right here, this costs $300 new, and a
year later it was four bucks. I don’t know anything about this subject. I’m not in school for it at all. But, I can study all the same information as an Ivy League student for
the cost of a bean burrito. Wait, I think that’s the
plot of Good Will Hunting. I’m not gonna read this. Why has the idea of
self betterment, study, and passion for a subject without the need for a pointless degree
and hundreds of thousands of dollars in debt become so weird? It shouldn’t be. It should be mundane, but it’s not. Go ahead, tell someone you’re, I dunno, studying the history of French literature. And when they ask you, “Oh,
what school are you going to?” Look them square in the eye and say, “Oh, no school, I’m just
studying it on my own, for free.” Watch the look in their eye. They’ll act like you’re
weird because you don’t wanna blow a hundred grand on information that is free to everyone. When it comes to money, going
to school won’t make you rich. Heck, it won’t even make
you especially smart. Sure, there are careers for which you need expert instruction. Surgeons, engineers, physical therapists. But if failure in your area of interest would not result in actual
damage to human life, you can probably just read at the library and audit a few classes
and still know more than 99% of the planet. So, what if instead of paying school for at best a 50/50
chance of limited success, you invested your money and
time to start a business. Then take all that accumulated
freedom and revenue to study any number of
esoteric humanities subjects. Or invest in charities and
social programs you believe in. Recap time. So, what did we learn? School can’t really teach you about money. Teachers are good people,
but not the best source of wealth building knowledge. Higher education is a financial liability, and one of the worst
investments you can make, especially if you’re studying humanities. Ah, and a library card
is as exactly as good as a graduate degree from Harvard, and about a quarter
million dollars cheaper. Oh, also don’t clear out
your ears with a nail gun. That wraps up this episode of Weird Money. Please don’t forget to subscribe
and leave a comment below. Tell me a weird money
story or share your own regrettable life experiences
in higher education. In the description I’ve
placed a few frequent books you can download if you’re
interested in learning more about stock investing, real estate, or starting a business. Thanks for watching. Bye. (light melodic music)

100 thoughts on “Higher Education Is A Financial Liability (WEIRD MONEY)”

  1. The current school system is just designed to make people dumber, fearfull and a good slave for companies. Ohh and ofcourse since people have debt, they are more likely to search for a safe job

  2. 2:25 – 2:57 Damn I wish I heard this before I went to college. I just didn't know. And he's right, all the tools for learning how to draw and paint and digital art is all free or super cheap.

  3. smh… tx has some of the highest rated schools in the nation while CA is now deemed a "third world state" with the worst schools in the nation.

  4. I wouldn’t go to college, even if it was paid for me in full. Thank goodness I’m not getting myself or my parents in debt. They complained to me about how I’m throwing away the $10k they invested for me to go, but I convinced them that I avoided a much worse outcome. At least the $10k is there as an emergency fund instead.

  5. I lost a friend over this years ago I was building websites without a college degree, she could not handle it at all.

  6. I was in special education from elementary all the way up till I graduated from high school 😢😢so learning thing for me is hard. Doing hands on stuff I like but reading from books it's hard for me.

  7. Honestly, higher education (university) should only be there to learn STEM fields and do research in those areas. Basic business skills should be taught like communication, work ethic, how to sell a product or skill, marketing, and especially financial education subjects. These are things that are useful to everyday life but not many if hardly anybody knows about it. Anything else is a waste of money, time, resources, and a whole lot of accumulated debt. The fact that universities forced students to learn general education classes like english, ethnic studies, history, and other things similar is essentially saying give me money for useless knowledge that tries to make you think you are smart but you aren't. General education should have been covered in your K-12 years of compulsory education.

  8. I think school also teaches about Mohammad riding his eight year old bride, along with the Jesus on a dinosaur bullshit.

  9. I do agree with a lot that is said. But, the only part that confuses me is that what would happen if we did not have people who studied tax law, property law and many other subjects that provide many other professions that are needed for day to day life?

  10. I do fully agree that financial literacy should be learned in schools, The only problem would be that we would have no police, firemen or woman and many other because everyone would be busy wanting to be rich.

  11. Ive never seen a rich teacher.
    Yea i agree, im probably one of few who has a library card from my social cirlces, and im proud of it. "Bad debt" is a liability im not willing to acquire. ✌

  12. What if you live in Finland. Get the highest degree of education and come out with 0 dollars of debt and get employed to a well paying job instantly and from there start investing?

  13. Tired of this new fad to knock higher education. Fix it, don’t kill it. Why are we pivoting away from the idea of higher education? Why don’t we aim to improve the quality of the content, or the relevance of the curriculum??

  14. A friend of mine is going to school to be a marine biologist, in the midwest. I asked about starting pay, they said minimum wage. I told them after I make my fortune I would get a big saltwater aquarium and hire them to take care of it, because you know I will forget to feed the fish. Then I'll open it to the public to make it offset the cost of ownership just like Busch gardens.

  15. Right now all the knowledge that has been actually useful to me I learned from books outside from university.

  16. In 1978 My 6th grade teacher Mr. Ewen (he taught science mainly) had 4 cars – Corvette, Z-28, Camaro and a 4-wheel bucket.
    We students thought We had the coolest teacher in the whole school just for that.

  17. My economics professor became a millionaire by investing into stocks with his refund checks from college. He would always ask for more money than what he needed and then he reinvested it into amazon (at the time). He just teaches now doing what he loves with no debt and he taught us all the same strategy.

  18. FACTS. Luckily I spent all my time learning to be a psychologist, no student loans ( I’m an immigrant so I’m not eligible) so that’s legit 😁 still broke though so that’s why I’m here 🤔 thinking of putting my money into real estate when the big bucks start coming in 💰

  19. I have heared most teachers are financial management experts in their private life. They live below their means and end up having saved more money than doctors when they retire.

  20. The problem is people need to learn specific skills that can be turned into money like artificial intelligence and programming. General education is good but should be free. People have only themselves to blame because no one needs to go to college or university to learn specific money making skills like sales, marketing, artificial intelligence and programming neural networks.

  21. Go to trade school
    Still a lot of the same pros and cons but it's much cheaper, and people literally hand you work if you're a good tradesman

  22. Did ROTC and had the military pay for my college education. Zero student loans. Used it as a stepping stone for my future opportunities and leadership experience.

  23. I'm 15 years old and i live in the philippines. My father is a farmer and my mother is a housewife. My father always say that i should go to school studyhard and get a decent job. What if i quit school and they did not support me. What can i do? Who will help me?

  24. My wife is taking a class for nursing and she just spent a week learning how properly refer to the LBGT community not to offend them. I told her to get her 600 back for wasting her time.

  25. The best idea I got from this channel , is good debt bad debt. And how to use debt to make you money, all while paying the debt off with your assets.

  26. Why (higher education) , especially humanities one of the worst investments we can make ❓❓❓

  27. So, I'm a teacher at my local university and yeah I do have to do side gigs to make ends meet. Thanks for the video.

  28. I got an education that was workrelated. No student debt. Now i study philosofi. On secondhand books and audiobooks on Youtube. For free and only for my own amusement. True learning.

  29. I joined this Amazon Seller course 2 years ago https://members.justonedime.com/amazon-arbitrage-coaching?ref=361 and unknown to me is this course was actually teaching me a practical MBA level degree in business… see in colleges they don’t even teach you anything of real value for an MBA degree… he’ll they don’t even teach you how markets work!! This course does!! It shows you how to start, build, grow, and scale your Amazon business!! Years ago when I started I was $30,000 in debt and only had $500 to start with… I took $250 of that to buy my first months worth of the course and immediately implemented what I was taught!! Today I now make triple my yearly income in only 1 MONTH it was a lot of learning and hard work but it paid off!! OVERALL I have spent a total of $9000 in 3 years… HOW MUCH IS 3 YEARS OF COLLEGE??

  30. you should tell that this only applies for america. In the majority of Europe the tax is much lower than in america ( sometimes 2000euro/year or free)

  31. As Ben Shapiro puts it, “College is good for two things and two things only. Credentialism and networking.” Therefore, any price tag on a degree is essentially a price tag on those two things.

  32. I don’t think a traditional education is what is going to make us successful. Hence why I decided to take classes specifically for trading. Figured “why pay someone else to manage my money, when I can manage it myself?”

  33. Why is easier to get in debt with the purpose of study than get in debt with the purpose of invest? I have a debt of $18000 (one year no interest, $180 one time fee), and I cannot find a was of get at least $5000 more in debt. In the next economy crisis, I going to buy a house and I going to get as many credit lines as possibly from the house to invest in cryptocurrency.

  34. https://experts.richdadworld.com/catalog/product/01ak06t50a1
    could anyone explain Rich dad world ? is it owned by Robert himself? is it safe ?
    i see this review "I was scammed. I listened to an online sales pitch that promised several thousands of dollars of coaching materials for only $99. I went ahead and purchased the program, never suspecting that it was actually going to cost me five! payments of $99!!! My wife noticed that there was an additional $99 charge… I called the Rich Dad Coaching company and the lady there cheerily informed me that the order form as well as the email confirmation stated clearly that it was five payments of $99. It was like getting a punch to gut… And she showed no mercy as I pleaded for her to at least cancel the remaining two months and let me keep my remaining $200. She said there was nothing she would do for me, because after all, you did have a 30 day money back guarantee! And then she “cheerily” said have a nice day before we hung up. I I trusted the online pitch. “All this for $99!” Because it was Robert Kiosaki’s company and trusted him! I paid and then the email said “$99 – Order Total”, and I missed the fine print below saying “five payments”, but RichDad still lets me catch the trick that was played, as soon as I noticed the first extra $99 charge that would hit my credit card. The problem is that that first extra charge would hit just AFTER 30 days later. Well-played Rich Dad… I’ve never been suckered like this before, and it feels terrible."
    which make me feel insecure

  35. So true, I have 3 friends a cousin and a brother who have gotten degrees in this past year and none of them can find jobs in their career plan. My cousin wants to go back to get her teaching certificate( just like her mom and aunts) because it guarantees a job. Smh I dropped out of college this past semester and have been slowly building an e-commerce business as well as investing in real estate.

  36. I'm majoring in biomedical engineering, and because my dad does research at the college, I won't need to pay tuition.
    I won't be living on campus either, since it's $2k/mo for a dorm room that's somewhat smaller than my room, and $20/meal for mediocre food.

  37. Wealth is not for you people. Us rich folk won't let you have it. I did post a clue and answer on my videos

  38. Hey did you know you don't need a degree to be a Software Engineer, but you do have to know how to write software… You'd be surprised how many kids go to school for a Computer Science Degree, but don't know how to write any code, but will tell you about quadratic equations from high school, or some shit about Big O Notation. So, Apple, Google and friends said f#! it, https://www.youtube.com/watch?v=gJPMfLgi8Ro

  39. I've seen 2 types of people. 1, people who go to school, get an education, and then work for a pension or use the money towards investing. Or 2, people who go the no education route and weasel there way into money or none at all. I understand financial literacy is very important. But a lot of time when young adults try the entrepreneurs route. They do some morally questionable things. The goal should be to find the most efficient path not create money hungry devil's. I've read your book and we have similar backgrounds Robert. But I dont think you adress things that your young audience fail to realize.

  40. As someone who has a Philosophy degree, I agree with this generally. If the goal is to have your own business, become an entrepreneur, or something of the like, do not go to school and waste 200k on a humanities degree. Study some business courses at the JC (very affordable), and intern or work for free under a successful business owner. I like the idea of auditing a course and reading a book, too. Wake up and be Woke by reading a freaking book!

  41. I have a question . I’m in high school senior and I want to start my own business do real estate and invest . BUT is it possible to do this with a low income earning minimum wage ? Please I need a answer

  42. Dropped out 11th grade. Currently run a business and have a day job making 140k/yr. No degree. Internet and books. This video is the best advice you can ever receive. Everytime I tell people my story I get weird looks and lectures from people who make 1/3 what i make. I am 20k in debt because of my truck. $0 of school debt.

  43. I was a high school career-guidance counselor for 8 years, this is the truth and exactly what I coach my students to believe.

  44. Sofia university in palo alto , ca usa 🇺🇸 is the biggest scam there is . They are all about “transpersonal psychology” . U can do drugs n alcohol anywhere u dont need to pay in palo alto money to join a group for glorified substance abuse group

  45. It is well known. Knowledge is power only when you take action. If you do not apply the knowledge that you have in your mindset in the real world, it become completely useless. Those teacher do not even know what they are teaching because they never experienced what they teach.it is a joke

  46. so true, my business studies teacher new nothing about actual business.She knows the content of our prescribed textbook but really its all outdated s**t we cant even use.

  47. So the average school debt is the price of a decent car? What a bunch of snowflakes. I just paid off my 30,000 car working a job that pays me next to minimum wage.

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