Helping to guide the kids
ACROSS the country, thousands of high school students are facing their final exams.
Some will be hoping to enter university, others have sights set on a TAFE course, and some are planning to enter the workforce.
It’s a time when parents can offer valuable support.
A university degree is definitely worth aiming for. The latest Australian Graduate Survey shows around 76 per cent of new graduates are in full-time jobs within four months of finishing their degrees.
The median annual starting salary for graduates last year was $50,000. But when it comes to the big money, it’s hard to go past the starting salaries of dentistry graduates ($80,000) or optometry graduates ($70,000).
The potential to earn a decent salary both immediately after graduation and throughout a working life is one of the main drawcards of tertiary study.
And i t can compensate students for the downsides of uni life. These can involve several years’ scratching for cash, long hours studying and being fourth in line for the shower if you’re sharing rental accommodation with fellow students.
Nonetheless, the rewards are worthwhile. I’ve seen research that shows the average Australian graduate can earn almost $300,000 more over a working life than their mates who finish formal education with year 12. The same study estimated that, over the course of a lifetime, this extra income works out to a return on investment of around 15 per cent annually — and that’s after allowing for the costs of acquiring a degree and income forgone while studying.
Not all jobs call for a degree. But I still reckon it’s worth thinking about vocational education through TAFE or a private college after leaving high school.
I tracked down studies that estimated around 80 per cent of graduates who undertake vocational training are employed within six months of completing their course and the majority felt the training was relevant to their job.
Parents can lend a hand in helping their child decide the appropriate area of study they wish to pursue. And mums and dads can also provide the benefit of experience if kids decide they want to start on a career straight away.
No matter whether you’re thinking of uni, vocational courses or hitting the job scene straight away, I wish the class of 2012 all the best with their final exams. Paul Clitheroe is a founding director of financial planning firm ipac, chairman of the Australian Government Financial Literacy Board and chief commentator for magazine. Visit paulsmoney.com.au for more information.