Is College A Waste? It’s Shaqademic.

Kangol makes mortarboards now?

 

Now it’s getting out of hand.

Earlier this week, retired professional basketball player and current professional dilettante Shaquille O’Neal earned a college degree. A doctorate, no less. For some reason, people are regarding this as a comment on the importance of education, rather than the publicity stunt that it is.

The story goes like this: Shaq left Louisiana State University after his junior year, and promised his mama he’d go back and complete his degree one day. Motherhood, the de facto 21st century American pastime…add some apple pie and we’ve got ourselves a pretty compelling political ad. Making America Stronger. A Better Future For Everyone. Standing Together On The Precipice Of History.

Education is important. Fine, you win that point. So is food, but no one will argue that a sticky bun from a vending machine is of comparable worth to a grilled skinless turkey breast.

In other words, no, education isn’t always important. Sometimes – a lot of the time – it’s a net negative, given that the time and resources spent earning that degree could have been spent doing something more productive and/or less expensive. An English degree and a computer science degree aren’t equivalent, similar, or even mutually intelligible. Same goes for the holders of those degrees, and their career prospects.

What’s Shaq’s degree in? It doesn’t matter. When you’re already worth hundreds of millions of dollars, the rules change. Earning a degree can’t possibly mean to Shaq what it means to your typical college student who’s working retail and eating cold pasta. It’s more like John F. Kennedy Jr.’s law degree – some slight form of validation for the degree holder.

What’s the purpose behind a college degree? That’s not a rhetorical question. Every answer we’ve ever heard has incorporated some combination of the following:

A. So you can earn more money.
B. To enrich your mind.

Okay. Can you put a price tag on either answer? The standard armchair analysis of A. is that people with college degrees earn an average of an extra million dollars or whatever over people who don’t.

Before we return to our regularly scheduled programming, let’s tear a hole in that one once and for all, shall we? For every board-certified neurosurgeon who earns a cumulative $10 million more in his career over a non-collegian, there are 9 liberal arts majors who might as well have started working right out of high school for all the difference going to college made. 

What about B. then?

Don’t say that that’s a philistine concern, an education is priceless, and that you can’t attach a dollar figure to the process of enriching minds. Colleges do. In fact, it’s all they do. Enriching minds is as reducible to dollars and cents as anything else is.

Degrees are becoming inanimate versions of miniature dogs. Most of them are little more than conversation pieces to conspicuously show off to (and elicit comments from) other people.

This is only the latest in Shaq’s arsenal of degrees. He finished up his Louisiana State bachelor’s in 2000, and received an MBA in 2005. The former is in “general studies”, while he got the latter online from the University of Phoenix. Shaq’s new doctorin’ degree might be the most laughable of all. It’s in “human resource management”, from a school whose 2nd-most illustrious graduate is Miss Rhode Island 2008.

None of his degrees is in the traditional trivium or quadrivium, the classical underpinnings of a liberal education, so we can assume that Shaq’s B.A., MBA and Ph.D were earned less for mind-enrichment and more for financial reasons.

Yes, because Shaq is going to list those degrees on his résumé the next time he puts on a tie and applies for a job. Is anyone living in anything approaching reality here? Shaq and his mom certainly aren’t. Over the last 2 decades she’s enjoyed financial well-being light-years beyond what she had imagined, back when Shaq was an infant and his loser biological father was imprisoned for drug possession. All because her son was the single most devastating low-post force in the history of basketball. She needs Shaq to do coursework too? What the hell for?

This isn’t a comment on Shaq. It’s a comment on how The Importance of Education is being taken to preposterous levels. A college degree, bachelor’s or advanced, couldn’t mean less to someone whose non-academic skills can translate into money. On a smaller scale, it’s like a guy with an aptitude for installing appliances wasting thousands of dollars and several valuable appliance-installing years languishing in college. How can it not be better to do what you’re good at? Parents, maybe you can use that college fund to go on that Fijian vacation after all.

Shaq’s degrees might be ludicrous, but that doesn’t mean they were free. He spent $1,060 per credit hour to earn the Ph.D. Which required 54 credits. Shaq used to make enough to cover that, several times per game. He’s earning degrees out of a need for stimulation. Not that there’s anything wrong with stimulation, but a regular person who followed Shaq’s lead would be committing several months’ wages (and several years’ time) to that pursuit.

Actually, who are we kidding? They’d be borrowing from federally guaranteed student lenders and we all know it.

Look, Shaq can do whatever he wants. And has. Rich people have options. He’s been a TV analyst, recording artist, movie star, pretend cop (Miami Beach reserve police officer), and commercial spokesman. None of which required him to do anything academic. The glorification of education in all its empty versions is part of the problem. Instead of a Ph.D. with no intrinsic nor extrinsic value, let’s see Shaq go to trade school and learn to be an aircraft machinist. Which would be just as ridiculous, but significantly cheaper.

(Epilog: Here are even more stories about educated fools who borrowed tens of thousands of dollars to go to college. Some of them each owe more than $100,000. Lots of them dropped out. One is even a state representative who now waits tables. At least one is “following her dreams” by moving back in with Mom and Dad in the dismal little farm town she initially tried to escape from. And zero of them thought about how much this was going to cost and how long it was going to take to pay it all back. But yeah, you keep believing that going to college is the only way to get ahead. Knock yourself out.)

This article is featured in:

**The Totally Money Blog Carnival #69: Telling it Like it Is**

A Guest Post From A Dog

 

Occasionally we run guest posts. If you’d like to submit one, see our requirements here. Today’s is written by one of the very few submitters capable enough to meet all our criteria, Froofy the Dog.

 

He already writes better than most Carnival of Wealth submitters

Hi, this is Froofy! My brain can do the following, and not much else:

  • remember which people I can trust
  • know where my food and water are
  • allow me to whimper so the people mentioned above will open the door and let me out when required.

Yet even I know that you’ve got to be some kind of lower vertebrate to take to heart half the tripe I read that’s passed off as personal finance advice. (Yes, I occasionally read. That contradicts what I wrote earlier, but I want you to suspend your disbelief, at least until the end of the post.) These self-styled experts and bloggers repeat the same incessantly dumb stuff and think that a) it’ll make a difference if executed, and b) anyone’s going to act on their awful advice anyway. Here, I’ll list some of the most offending personal finance mantras I’ve come across. I’ll use point form, the preferred method of communication for dimwits:

  1. Create an emergency fund.

What’s an “emergency”? Yes, I know, it’s a relatively simple word, but what, specifically, could it mean in this context? Give me an example, humans.

Medical bills?
Car accident?

Wow, you folks are unimaginative. Then again, you cite the same emergencies repeatedly because there just aren’t that many occurrences that can legitimately qualify as “emergencies”. That’s if you define an emergency as something that requires you to draw down funds that you’ve set aside for such an unfortunate occasion.

Let’s examine the examples above.

You can buy health insurance. Yeah, I know, it’s too expensive. Waah, waah, waah. Get off that doughy posterior of yours, eat better, and maybe your premia will decrease.

Besides, if your finances are so tight that you consider insurance to be expensive, why do you want to sock away money in an inert account anyway? Shouldn’t you be growing that money instead? Explain this to me. I’m just a dog.

Okay, #2. Car accident. You have insurance for that, too. In fact, it’s required.

I know what you’re thinking. What about an unforeseen expense that insurance doesn’t cover, something like a cylinder head assembly that needs replacing?

This is easy. You withdraw the $3000 or so that that’ll cost out of one of your investments. Dropping $3000 is something you’d obviously rather avoid doing, but when the time comes, you’re going to have to do it anyway. To quote business author Harvey Mackay, you’re supposed to dig your well before you’re thirsty. That’s not a retroactive argument for creating an emergency fund. Rather, it’s a retroactive argument for putting your money somewhere it could grow.

Confused? I usually communicate in barks, so you need to work with me here.

When someone recommends an “emergency fund”, they mean a highly liquid account – one you can take money out of easily. Most of the time, that’s going to mean a savings account that earns either no interest or minimal interest. This is stupid. If you’ve got the discipline to sock away $5000 or whatever and not touch it, good for you. But it also means you’ve got the discipline to amass $5000 and actually, you know, do something with it. Five large is a down payment on a condo. A cheap one, anyway. Or it’s a substantial piece of a real estate investment trust. Or it’s 223 shares of Hewlett-Packard, which is trading at close to a 52-week nadir. They recently switched out CEOs, can’t possibly make any more dumb acquisitions anytime soon, and probably should have been selected by the folks behind Control Your Cash in Financial Uproar’s stock-picking contest. Not sure why they didn’t.

When you create an emergency fund, you’re saying, “I want my money to stagnate.” If I get lucky, something costly will happen and it’ll all be worth it. Dang, Mark Twain wasn’t kidding. You people really do love to rationalize.

2. If you can’t handle credit, freeze your cards in a block of ice.

Come on. You’re screwing with me, right? This is like a personal-finance version of the hidden-ball trick, isn’t it?

Why do you have credit cards if you’re not going to use them? Oh, for emergencies? See above. To build credit? Don’t you have to occasionally use them, then?

I know a guy, a Dobermann. Nice fella. From Germany, which is why he uses the additional “n”. His owner tried to quit smoking once. Well, several dozen times. He’d buy cigarettes, then get his girlfriend to hide the packs in the house. Why you’d possess something and not use it, we couldn’t tell you. Flirting with lung cancer seems at least a little more straightforward than trying to fool yourself into being tobacco-free. If you’re afraid that being able to access your cards means you’re going to go on a spree and end up thousands of dollars in debt…well, have you tried being an adult? Try it and see how that works.

3. Create a budget and stick to it.

How does this one work, exactly?
Let’s say you get a call from a friend on the 30th of the month. He asks if you’d like to meet him for lunch. At a restaurant, which presumes you’ll be spending some amount of money.

What do you say? “Sorry. Went a little crazy at Chili’s last Monday – I ordered an appetizer and an entrée. Long story short, I reached my allotment for the month (Expenses: Food & Entertainment category) and can’t meet you. Unless you want to pay for me, or perhaps you’d rather I just order water while watching you eat.”

You’ll lose a friend, and you’ll deserve to.

Budgets are for business entities. They have to have them. Businesses have multiple decision-makers pulling in different directions, and not everyone can have their way. The research & development team would love to have an extra few hundred thousand to experiment with, but the CFO has owners to answer to and finite resources to manage. The factions have to reach a compromise, thus every department gets a budget.

But you’re not a company. You’re one person, with no one else to answer to. Try this: spend necessarily. Don’t squander your money. Make a conscious decision every time you take out your wallet. Don’t freak when you’re in line at the supermarket and you find that that 60¢ bag of cilantro put you over your self-prescribed limit. Life’s too short. And are you really going to spend time fixated on a spreadsheet, categorizing your expenses for the sheer fun of it? Come on. Unless you’re naturally inclined to do so, you don’t. Stop kidding yourself.

Those 3 useless pieces of advice just perpetuate bad habits among people who were never going to change anyway. You don’t need an emergency fund: you need assets. You don’t need to save yourself from yourself: you need to grow up. And you don’t need a budget. You just need to stop spending stupidly.

That wasn’t so bad, was it? (It wasn’t.) Told you we were smarter than cats.