The Time-Value of Education

Statistics Canada reported on September 16 that tuition fees have increased across the nation. The data was taken from the Survey of Tuition and Living Accommodation Costs for Full-time Students at Canadian Degree-granting Institutions which was administered May to June 2010 to cover the 2010/2011 academic year. However, statistically an investment in post-secondary education will still prove to be one of the best investment decisions young people can choose to make.

On average, full undergraduates paid 4.3% more on average for the 2011/2012 academic year, compared to a 4% increase in 2010/2011. This may seem like a hefty increase when compared with inflation, which was 2.7% between July 2010 and July 2011 as measured by the Consumer Price Index.

Fees also increased for graduate students across the nation; with increases ranging from 0.1% in Alberta to 5.5% in Ontario. The only provinces which did not see an increase were Newfoundland and Labrador. The data taken from the Programs with the highest costs were excluded from the survey to avoid skewing the overall tuition fee average.

The cost/benefit of attaining higher education truly pays off over time. Higher education is strongly correlated with a higher income as well as job security. The rewards can thus pay off immensely; a 2008 report from HRSDC showed that while not only do earnings increase over time, but also contributes to higher income during retirement. The growth in average earnings between the ages of 25 and 54 jumped from 49% to nearly 100% for those with a high school diploma and those with a university diploma, respectively. On average, a university graduate will earn double that of a high school graduate.