How do today’s economic conditions make preparing our kids for college more crucial than ever before?
College is more expensive than ever. But with regard to future earnings prospects, it’s also more significant than ever. In June 2013, the unemployment rate for non-college grads was 7.6 percent, but for college grads it was about half of that (3.9 percent). You’ll see this pattern, in good times and bad, over the last few decades. And the “earnings premium”—the additional money that a college graduate earns relative to a non-college graduate—has been steadily increasing. In 1979, high school graduates were paid 77 percent of what college graduates made; today they make about 62 percent.