How and Why Women Are Graduating At Considerably Higher Rates Than Men And Where They’re Headed

Although the slow expensive route of higher ed has become increasingly debatable during times of realignment and remote work, it is still a top consideration for a fruitful and comfortable life down the road.

The main and usually driving concern for most is the cost, specifically opportunity cost.

Although women are overall more risk-averse (conservative) than men within their portfolios to life choices since they tend to live longer, women end up returning more, roughly 3% higher within their portfolios annually, owe less debt, own higher savings, diversify better, are mentally and emotionally more stable, study and perform better as students, and are able to stick to things for longer.

These stats aren’t meant to fuel a debate. They are proven facts that are handy to note when considering the second most expensive purchase of one’s life: higher education.

For the first time in history, men have fallen behind in enrolling in college and attaining degrees. It seems to align with risk aggressive decision-making and ambitious nature. The lingering pandemic, Great Resignation, hot housing market, tight labor market, gig economy, retail trading boom, and wage inflation have all been in the back of our minds lately as we reevaluate our circumstances. This kind of reckoning isn’t just done by the workforce, but those gearing up for it as well.

Since the pandemic hit, teens have struggled immensely enduring two pandemics, a virus and a mental health crisis. On the other hand, women have suffered on a similar level. Juggling child care, homeschooling, home duties, neighborhood or social media pressure, and most of all work and life balance. They’ve appreciated this time to be able to weigh their lifestyle and make healthier choices for themselves and their family, a few choices that aren’t always considerations men have to take.

With fewer responsibilities, no dependents, and endless solo career paths with no pay ceiling that don’t require a college degree, venturing out too soon has become enticing routes more college-aged men have taken to temporarily earn more than learn for greater lifetime earnings. Yet this all comes at a steep cost — the largest one students don’t tend to be emotionally prepared for just yet: a high failure and rejection environment. It’s easy to compare yourself online and strive to become the next TikTok earning 9 figures per year. No one sees the behind-the-scenes sweat, tears, luck, and timing that goes into anything online. That is a danger to the gig economy. Without the stamina, mental grit, expectations, backup plan, consistency to get started, and mental stamina, it can be an unreliable dangerous path especially when one has the option of attaining a steady degree instead.

This toss-up between risk and reward and short-term vs long-term gratification are choices younger generations have a tough time dealing with growing up in a consumer-driven, social media superficial, ‘buy now, pay later' world. Everything looks too easy to come true.

Typically, how you do one thing, is how you do everything. Our portfolios and spending habits are helpful indicators of how we should handle life’s big chapters. Without at least 5–15% of your net worth in cash or liquid securities to cover 6–12 months of living expenses, you can easily go under. What’s certain is uncertainty. Although you may be young, fit, attractive, and wise, without a plan, anything can throw you off course. I urge students to have an ego check and never be too complacent or believe they are fully prepared. There is only so much we can control. The same thing applies to being a student. You may be able to survive just fine off of Ramen and share a studio with 5 friends at this point in your life, but without a backup plan, realistic expectations, or financial buffer, it may not be worth it to start especially if that’s all you plan on focusing on or have. In general, according to the way women plan their lives and decide between choices, they prioritize stability and preparedness more than anything which is extremely handy when deciding upon a life’s mission. When in doubt, before you jump into the cold murky waters, always have at least 5 income sources to keep yourself afloat and never be reliant on only one for ultimate safety and financial security.

Real World

I consider myself a student of life, not only the classroom.

It’s reassuring to hear there are more women graduating and taking lead in the workforce than ever before but there is still a lot of work to be done.

Women only take up ~10% of the Fortune 500 CEOs and there is a pyramid effect that occurs as women’s roles shrink at the top.

This educational gender gap indicates men have more freedom, choices, and flexibility without a degree. This is one of the hidden gender disparities and inequities within our system.?Including the pink tax, which you can read about here, and the hidden glass elevator where men are able to rise faster into top management positions, women are put at a disadvantage. Women have to work harder to prove themselves and be taken seriously, one of the few reasons why a degree is a stabilizer and handy route.

Although it seems like one, being able to take on more risk may not be as beneficial especially when the results don’t always add up. If you have the financial means, a degree should be a top priority. If you need to, take a gap year but don’t give up something so precious people go into 6 figure debt for. A degree is not just for lifetime earnings potential and opportunities but for connections, new perspectives, and a worthwhile irreplaceable investment as well.

Drop

U.S. colleges and universities had 1.5 million fewer students compared to five years ago. This is a 6% drop since 2019. Men accounted for 71% of the decline and currently, women make up half of the college-age population. With rising costs in a remote world and more popularity around the gig economy, men are pivoting faster than women, possibly with too much exuberance and confidence. Only time will tell! Within a few years, I’d be curious to see if the Great Resignation will cause ripple effects on the economy and the way we evaluate this costly decision that is rising above inflation each year.

Risky Business

As frequently mentioned on here, working for yourself will potentially help you attain financial freedom faster but at a much higher cost and risk to your financial and physical health. If we all could, we would most likely prefer to work for ourselves but until we try it out, it will always look glossier from the other side. Students are naturally more naive and tend to forget this side of the story, believing everything they see and dream of.

With millions of business patents and registrations initiated during the pandemic, the Great Resignation, or as I call it, the Great Realignment or Reshuffling, is prompting students to reconsider their lifestyles, neglecting the fact that this is a temporary sign of the times in a recovery stage and nothing is guaranteed in life.

Before jumping into the deep end and going into full-time entrepreneur mode with no degree behind your belt, ask yourself what are you willing to do for this opportunity and how are you best prepared? Would you feel embarrassed about going back to school? Most self-starters can’t answer these questions and eventually get trapped.

If you have the desire and inclination to become the next Zuck, before you drop out of Harvard, consider what would happen if things didn’t work out. Are earnings or fulfillment the main drivers? What is your version of success? What is your reason for abandoning a route that has a proven track record? Fortunately or unfortunately, money controls our lives whether we like it or not. It must be considered today to be able to have the potential to grow it tomorrow. After all, it takes money to make money. Venturing solo requires various types of intense capital, not just monetary value that students may not have built up yet.

Assets

Being flexible, mentally and emotionally stable, prepared, and agile are key traits women can teach best — portfolio managers in particular. It’s never too late to pivot, start school again, earn earned income through an employer while managing several income sources on the side, and NOT be an entrepreneur. We are all CEOs of our lives and enjoying the long-term growth process instead of attaining a temporary high payout and no return later on may serve you better long-term.

If you choose to drop out because everyone else is in this environment before you are ready or have a valid purpose, it entails you are simply doing it for the money. If you have a solid game plan, support, income sources under your belt, reason, and various choices, then it is most likely for a greater purpose. Taking a break is necessary for growth but after having extra time given back to you during the pandemic, now is your time to fuel this potentail.

Higher education is the second most expensive investment one will make in their lives behind their primary residence. Dishing out a quarter of a million dollars to learn from a textbook and the classroom isn’t appealing to many these days as costs have risen above inflation. These are the most precious years of your life. You want to make sure you take the opportunity to meet new people, invest in yourself through an internship, extracurriculars, explore the campus, cultures, clubs, and not just stick to one sector or industry. This is a time when students redefine their identity. There’s no reason to rush or be persuaded by someone else. I would urge you to become an open-minded generalist, not a close-minded specialist. Know a decent amount about a lot as opposed to a lot about a little to be prepared on any path.

Nothing is guaranteed. What you put in is what you get out.

The rise of feminism and working outside of the home took off in the late 1960s early 1970s when women became more engaged in investing in themselves personally and financially. After the Equal Credit Opportunity Act in 1974 was passed, women could obtain a credit card in their own name and become more independent. At the time, gender-based discrimination in terms of wages was also banished yet the pay gap still persists today. Women earn 82 cents of the dollar than men and for African Americans, it is down to 64 cents.

After speaking to a close friend of mine who works in corporate America and her husband is a stay-at-home dad, it’s fascinating to see their family dynamics and way of life as she says she thoroughly enjoys acting as the main breadwinner and allowing her husband to take care of their child. It’s empowering to see more women are obtaining top management positions, graduating with higher-level degrees, and striving to break the gender, pay, racial and wealth gap that persists.

The gender differences in graduation rates can teach us a great deal about our portfolio tastes, risk tolerance in life, and the sign of the times. Be aware of what you are attracted to and persuaded by. If your favorite meme stock is selling off, that doesn’t mean you should follow the crowd. Make your own judgment call, even during a swift recovery with massive economic growth. Don’t think to tomorrow, think to the long-term, decades down the line.

If it looks too good to be true, it usually is.

Women are masters at prioritizing patience as a virtue. There are forward-looking indicators built into their systems. The proof is found in virtually every area they tackle. When the time is right, jump on it. There’s no need to rush if not prepared, especially with your finances. Keep cash on the side to take advantage of the dip and attractive deal. Whether you are a student or a professional a few decades into your career, prioritizing the investment in yourself will continuously pay dividends for a lifetime. Education is a gift that can never be taken away from you.

You have nothing to prove to anyone except yourself. Follow your gut — to an extent.