Can Money Buy Career Happiness?
Post by
Mark Kaefer | September 23rd, 2008
What a crazy past couple of weeks it’s been. The turmoil on Wall Street is certainly keeping me up at night, though I’m fortunate in the sense that I wasn’t one of the thousands of brokerage employees who lost their job in the ensuing collapse. In yesterday’s Wall Street Journal, an article discussing the current market and its impact on recent B-school grads spelled it out plainly: a well-defined career path isn’t something you can bank on anymore. And like the current crisis, the need to reevaluate career paths extends well beyond downtown Manhattan.
Now more than ever, money matters and career choices go hand in hand. Take everything that goes with a down economy and add in the skyrocketing costs of higher education, it’s no surprise more and more college students and young alumni are grappling with school loans and their significant impact on BIG decisions… decisions like “what am I going to do for the rest of my life to pay off my debt?”
Earlier this month, Experience polled Gen Y on the subject of student loans and their role in forging career paths. In our Student Loans Survey, half of the respondents who indicated they were currently in school reported they are more likely to accept a job that offers higher pay, but less career satisfaction, in order to repay their student loans. Nearly a third of this group reported that their loan status weighed heavily in decisions to pursue a particular career. Of the college grads who took the survey, the vast majority – at 88 percent – said they have made sacrifices in their budget because of their student loan payments. They indicated these budget sacrifices have affected even common expenses like gas, rent and food – not to mention entertainment and retail shopping.
While it’s certainly a positive sign for our economy as a whole that college students and young grads are taking preemptive measures to deal with the financial ramifications of student loan debt, the reality that career satisfaction is sometimes put on the back burner as a result is unfortunate. But that’s just what it is: reality. As one survey respondent put it…
“I regret choosing a career path that would help me pay off my student loans faster. Although I am thankful for what I have, I wish I followed my heart in my career choice back in college and had not worried about my after-college financial condition.”
With all of this said, there’s a silver lining for recruiters who are competing to bring onboard budget-strapped Gen Y talent. Employers who have the ability to offer paid internships, scholarships, loan assistance initiatives and related benefits that ease student loan debt burden will only help them attract – and ultimately retain – the largest pool of qualified entry-level candidates.
Tags: career decisions, debt, financial industry, Gen Y, retention, student loans
January 6th, 2009 at 9:44 am
This is an excellent post with some terrific points to be considered before making any decisions with respect to financial aid and loans for students. Thank you for a great post.
March 7th, 2009 at 12:13 am
A lot of people face the dilemma I face today.You are 18 and a High School graduate, therefore you should suddenly be able to live and pay the bill by yourself. This is unrealistic. In todays world, what you are paid straight out of high school may pay for a phone, food, gas, and car insurance. You cannot afford college on your own. And on top of that, this world teaches financial irresponsibility. “Get it now, pay later” has become our theme song. And so our people plunge into debt.
High School should train students in paperwork and financial responsibility. Even applying for college is difficult for many high school graduates, because they don’t know how to do the paperwork.
The solution is for schools to teach real-world subjects, like finances and paperwork.
Also, a living wage is necessary. It is nearly impossible to find a job that will pay for college without having a degree in the first place! So we are forced to use credit cards and student loans to go into debt just to have hope of a life without debt!
I am lucky that my parent put up with my shinanigans and are willing to help me stay out of debt. But what about those with poor, or unwilling parents?