Crunching the numbers shows why students who didn't grab that diploma on schedule would be wise to complete it now. Assuming online study while the student keeps his or her job, below is the payoff, using the standard 40-year work life to calculate the diploma's value. First, the net present value of the diploma is the difference between the educational expense, currently estimated at $900, and the probable income gain. The future value of the diploma measures the work life cumulative gain expressed in today's dollars. Return on Investment High School Diploma vs. No Diploma Net Present Value $156,600 Future Value $1,102,700 Getting a high school diploma is an easy way to make a million.
Smart Investment Move #1: Finish High School
A high school diploma is the best investment any student can make. A dropout can expect to earn $18,734 a year--the average income for all people with no high school diploma . According to 2003 Census Bureau statistics, those who complete high school are looking at an average income significantly higher: $27,915. That's over $9,000 for staying in school an extra year or two. Over time, that annual $9,000 gain from a high school diploma mounts up. Quick Fact: Census numbers reveal that Black and Hispanic males are the greatest dropout risks; most leave school during the senior year.