Selecting a career path in technology, health care, engineering, finance, and related fields can provide graduates with the best long-term career opportunities today. However, preparing to enter a high-growth industry can cost far more than just college tuition.
Students can focus on the cost of the degree itself but fail to factor in other expenses, for example, certifications, software, specific equipment needed for specific courses or projects, internships (whether paid or not), professional exams, etc., all of which can increase the total cost of their education by thousands of dollars.
Education Costs Extend Beyond Tuition
Besides tuition, there are other very expensive expenses such as room and board, travel, books, lab fees, internet connection, and required materials for classes. These additional expenses can actually cost more than the actual tuition for the degree.
Even after accounting for scholarships, grants, federal financial aid, and personal or family savings, students may still face a gap between the funds available and the total cost of their education. In that situation, a private student loan may be one option for covering the remaining expenses. Before borrowing, students and their families should carefully compare interest rates, fees, repayment terms, and cosigner requirements while also considering the graduate’s expected income and ability to manage monthly payments after completing their education.
It is also wise to include the expenses required to get started in your career in your education budget. By considering these expenses as well as the direct costs of your education, students can arrive at a more realistic figure for the total investment they will be required to make.
Certifications and Professional Exams
For many high-growth careers, additional qualifications are required beyond a degree. This could be professional exams, such as those for accountants, or industry-recognized certifications, such as those for IT security professionals. These can add high costs for exam fees, study materials, and potential retakes.
The cost of sitting for multiple exams, in addition to the initial cost of each certification, can add up quickly. Many certifications require continuing education to remain current, and some also require annual renewal fees.
The cost of these additional requirements can be very high, but they can also give graduates a big edge in the job market. A degree holder with these qualifications will be more attractive to many employers than someone without them. However, some employers expect to pay for these requirements as part of the graduate’s salary and training after they have been hired.
Technology, Software, and Specialized Equipment
A number of today’s programs require more than a simple laptop to complete. Engineering programs can require the student to have design software, while students of creative disciplines can require cameras, video editing software, and drawing software (digital or traditional). Students of healthcare programs may be required to wear uniforms and to have access to clinical supplies that may require specialized tools.
Some software programs, for example, Adobe Creative Suite, offer student versions that are discounted for students, for example, $19.99/month for Photoshop, but could cost upwards of $500 for a several-year period of time. The student should find out what software is provided by their school and what they would have to pay for separately.
Using campus facilities instead of buying your own specialized technology can save students from spending thousands of dollars. In addition, used specialized technology can also save students from spending thousands of dollars instead of buying new ones.
The Cost of Internships and Early Experience
Many internships are underfunded and therefore unpaid or only partially funded. Therefore, the costs for things like transportation, food, business attire, temporary housing, etc. are to be borne by the intern. It is wise to calculate the costs of an internship before agreeing to it in order to gauge whether or not it will provide sufficient value to offset its costs.
In addition, some students may need to reduce the number of hours they work for pay in order to fulfill the requirements of their internship. This could result in an opportunity cost that should be considered as part of the student’s overall financial plan.
In addition to possible expenses of an internship, participants must also weigh the positive aspects of an opportunity in terms of required work against compensation or lack thereof in relation to long-term gains.
Planning for Career Mobility
High-growth industries often cluster in specific areas of the country. Graduates will have to relocate to locations such as Silicon Valley or other areas that have high concentrations of industry in order to access better job opportunities. Students will need to factor in expenses for travel, deposits, rent, and purchasing furniture for their new home. Even though remote work is becoming more prevalent, many entry-level positions will require employees to live near an office, lab, hospital, or production facility.
Remote work can provide a solution for students who are looking to transition to a new industry but are based in a region with few jobs; however, many entry-level positions are based in close proximity to an office, laboratory, hospital, or production facility.
Students who have saved up money for relocation before graduation can better evaluate job offers, which is crucial to their career success.
Making the Investment More Manageable
Preparing for a high-growth career can be very expensive. Using careful planning, however, can relieve a lot of financial pressure. First, calculate the full costs of the student’s education. Next, list out the different optional expenses. Then look for the many different scholarships that are targeted to specific students or groups of students. Finally, research the many different programs of employer-sponsored training.
Planning for a career in a high-growth field, such as cybersecurity, will require students and recent graduates to invest time and money in education and training, but in doing so, they will better understand the true cost of their career choices and be prepared to tackle the related challenges in the classroom and on the job.
