The tuition for a 12 month MBA from Queen’s University in Canada is $62,500. One of my sons is earning $75,000 now so by going to school full time he is foregoing that money as well. That brings the total to $137,500 for one year.

If I put that money aside for him and it gets an 8% return between now and when he turns 65 it works out to just a touch over $2 million. (After inflation we’ll call that $1 million in today’s dollars and we’ll forget tax drag for now, but that’s another story.)

For this to be better for him some might just wonder if he’ll make more than $2 million divided by 35 years (30 to age 65) per year more than he would’ve if he had not gotten his MBA. This is another $57,000 per year averaged out. (It would be markedly less if invested). The reason this line of thinking doesn’t work is that he’ll just spend the increased pay instead of saving it.

Unfortunately, it takes an MBA for most students to realize that an MBA isn’t worth it anymore. Why? The conventional wisdom is Superbad Advice. If you were planning on paying for your kid’s post-secondary education, don’t. Put it away for them and don’t tell ‘em. Besides another year of kids being taught that being 80% right is good enough doesn’t cut it in our world anymore. Too competitive.

Tags: 12 month mba, conventional wisdom, inflation, money, post secondary education, university in canada