Double Eight Enterprises Presents Preston Dennard

Take this education investment quiz to find out what you can expect about the cost of college today and in another 15 years. Also, find out ways to save for this important investment in you or your children's future.

Note: Unless otherwise indicated, calculations are based on the average cost of four years of in-state tuition and fees, books and supplies, room and board and other expenses for a student at a public college living off campus but not with parents.

1 - Over your lifetime, on average, how much more money will you earn if you have a bachelor's degree versus a high school diploma?

a. Faster than inflation b. Slower than inflation c. At the same rate as inflation

5 - During the 2002-2003 school year, college tuition and fees increased at an annual rate of:

6 - At the current rate of increase, a year's tuition in 15 years (2018) will be more than most people earn in two years:

7 - In the year 2018, how much will a four-year college education cost assuming costs rise an average 5 percent annually?

8 - How much money would you need to save each year/month to afford a college education in 2018?

9 - What are some tax-advantaged savings and investment vehicles available to help you save for college?

a. 529 College Savings Plan b. 529 Prepaid Tuition Plan c. Coverdell Education Savings Account d. All of the above

10 - What are some non-tax-advantaged saving and investing vehicles available to help you save for college? a. Mutual fund b. Savings bond c. Savings account d. Certificate of deposit (CD) e. All of the above

Note on No. 9 and 10: Contributions to certain tax-advantaged vehicles may be income-tax deductible in some states. Consult your tax or legal advisor for specific advice. Source: Trends in College Pricing 2002; College Entrance Examination Board.

Although there are many paths to success in IT, some types of education will make climbing the career ladder easier. But the wide variety of degrees and technical training programs available to IT professionals can make evaluating educational options overwhelming. Whether you are weighing going back to school, evaluating the credentials of potential candidates, or advising your employees, it's important to consider what skills each program teaches. A successful career will require foundation skills, technical skills, and business-related skills, each of which can be acquired in various ways.

FOUR-YEAR DEGREES. "I have many years of higher education but never earned a formal degree," says Olimpia Borys, a systems consultant at Entex Information Services, in Bloomfield Hills, Mich. Borys doesn't discourage getting a degree, but she says technical skills are more important. And she is not alone: Some people estimate that as many as half of all IT jobs, especially entry-level ones, could be filled by those without four-year degrees.

"The only problem is, I'm not sure what your job will be after that," says Richard Skinner, president of Clayton College & State University, in Morrow, Ga. "You can enter the field, but you're probably going to have to continue your education." Although there are exceptions -- like Borys -- people who enter the IT field today without a degree could find their careers stalled later. Many management positions require a four-year college degree, and in general, people with higher degrees make more money. Advocates of four-year degrees say the programs that lead to these degrees are an excellent way to learn the foundation skills necessary to succeed in the ever-changing world of work: problem solving, communication skills, and, above all, the ability to continue learning.

"I view college as preparation for the modern career structure, which is a multiple career structure," says Avron Barr, co-director of software research at the Stanford Computer Industry Project, in Stanford, Calif. Teaching up-to-date technical skills is often viewed as a weakness of four-year institutions. Companies that emphasize hiring four-year college graduates say they value graduates' ability to learn -- and they look to students' internships or work experience to provide the necessary technical skills.

"The difference is, do you hire somebody to do a job or somebody who has the foundation and can go quickly from one technology to another?" says Norma Abe, IT recruiting and diversity manager at Hewlett-Packard, in Palo Alto, Calif.The importance of having a bachelor's degree in computer science, as opposed to one in another area, is a subject of intense debate. Although some companies say they prefer to hire graduates with computer science degrees, there are successful IT professionals from all majors: Of the more than 75 percent of the respondents to the 1998 InfoWorld Compensation Survey who said they had a bachelor's degree, only 26 percent had degrees in computer science. Healthy numbers of respondents had backgrounds in business (19 percent) or the humanities (15 percent).

A College Education Can
Enhance Earning Potential

Average Annual Earnings
for 25-34-year-olds, by highest
educational degree attained: 1998*

Average annual earnings for 25-34-year-olds, by highest educational degree attained: 1998

*SOURCE: U.S. Department of Commerce, Bureau of the Census and Bureau of Labor Statistics, Current Population Survey, 1999.

Research indicates that higher education can add significantly to the subsequent earnings of some students. Other factors also come in to play, such as family background, natural ability, and the program of study pursued.

By attending college you show that you tend to be more motivated and talented. No doubt you've learned more in high school. These factors coupled with higher education also tend to push up earnings.

Some employers may use college degrees as a criterion to sort out potential employees. They recognize that higher levels of education may indicate higher ability. Accordingly, they look for workers with college degrees and pay them more because of their ability as implied by their higher education. Having a college degree may give you a much-needed edge in today's, and the future's, competitive job market.