A New Car or a College Education?

Posted on Thursday, January 2nd, 2020

What’s a better investment? Buying a new car or enrolling in a college program? The answer is very obvious, but too many families don’t hesitate to finance a vehicle, but they second guess the cost of post-secondary education.

Simply put, buying a car is a short term purchase while enrolling in post-secondary education is a life long investment in your future.

Society has been programmed to believe that higher education is expensive and out of reach for many families, but that couldn’t be further from the truth. The recent transformation of the Ontario Student Assistance Program has made access to post-secondary training greater than it has ever been.

More grants are available for students with lower incomes, the threshold for family income eligibility for student loans has increased and the application process has been simplified. Moving forward, students will also have a much clearer picture of what their investment will need to be in their education, allowing families to have better information sooner to make their plans for college.

The next time you see the sticker price of $25,000 or $30,000 on a new vehicle that is tempting you, just think how that money could be better spent on earning a post-secondary credential that will carry its value for the rest of your life. Going to college is often a life-changing experience for a student that propels them into a career with higher lifetime earnings, more employment opportunities, enhanced confidence, and eventually more disposable income for things like new cars.

The bottom line is a higher education credential doesn’t depreciate and if you commit to life-long learning, you’ll continue to open doors for yourself. The little black book is a certificate, diploma or degree that will maintain its value and never run out of gas.

Need more convincing, check out Algonquin College’s graduate placement report.

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