What is the ROI?
It is one of the most frequently asked questions by the new-age parent when making decisions about a child’s education.
Education today is increasingly being looked at through the lens of Return on Investment (ROI). Parents understandably want to know what they are getting in return for the significant amount they are investing in their child’s education.
But it makes me wonder:
Seventeen years ago, when I was beginning my own higher education, did my parents calculate the ROI of my education?
Apparently, they did not.
And perhaps they were not wrong.
Because when we think about what education actually gave us, the answer goes far beyond a salary package or a job title.
Education is an investment that compounds
The knowledge we acquire is only one part of the return.
The experiences, exposure, confidence, perspective, credibility, relationships and opportunities that come through education continue to influence our lives long after we graduate.
A university may give you a degree, but it can also give you access to people and networks that stay with you for decades. A connection made in a classroom could eventually become a business partner. A professor’s advice could influence a career decision. A conversation with a peer could introduce you to an opportunity you never knew existed.
Some of these outcomes can certainly be quantified.
But can we really put a number on the confidence gained from living independently? Or the ability to make decisions? Or the perspective developed through meeting people from different backgrounds?
And if a person does not become extraordinarily successful financially, does that mean their education delivered a poor return?
Perhaps the biggest problem is that we are trying to measure a lifelong investment with a short-term financial formula.
What if education is actually compounded learning?
Financial investments are usually measured against time, capital and returns.
But education has a different kind of compounding.
A lesson learned at 20 may influence a decision at 30. A relationship built at university may create an opportunity at 40. A perspective gained during those formative years may shape an entire career or even an entire life.
The return keeps accumulating.
Education compounds in ways that are difficult to put on a spreadsheet.
The years spent in higher education are also some of the most formative years of our lives. They are often when we begin to understand the world beyond our immediate surroundings like how people think, how organisations work, how societies function and, perhaps most importantly, who we are and what we want to become.
Education does not merely prepare us for a profession.
It prepares us to navigate life.
And the perspective for Studying Abroad is constantly evolving.
The conversation around ROI becomes even more interesting when we talk about international education.
Today, one of the first questions many families ask is:
What is the ROI of studying abroad?
We calculate tuition fees, living expenses, expected salaries and perhaps the time required to recover the investment.
All of these are legitimate considerations.
- But how do we put a value on living in another country?
- On learning to navigate a new culture?
- On becoming independent thousands of kilometres away from home?
- On studying alongside people from different countries and perspectives?
- On experiencing global workplaces, international best practices and different ways of solving problems?
- On developing the confidence to adapt when everything around you is unfamiliar?
These are real outcomes. They have real value.
But are they really measurable in rupees, pounds or dollars?
Perhaps we need a broader definition of ROI
This does not mean that financial ROI is irrelevant.
Parents should absolutely ask questions about affordability, employability, career opportunities, quality of education and the potential financial outcomes of an educational investment.
But perhaps financial ROI should be one part of the conversation—not the entire conversation.
There is also a return on learning.
- A return on experience.
- A return on exposure.
- A return on relationships.
- A return on confidence.
- A return on perspective.
And a return on the ability to make better decisions for the rest of one’s life.
The challenge is that these returns do not come with a price tag.
Perhaps that is precisely why they are so difficult to calculate and so easy to underestimate.
So, what is the ROI of education?
Maybe the better question is not:
“How much money will this education give me in return?”
But:
“What kind of person, professional and thinker will this education help me become?”
Because unlike most investments, education does not necessarily give you a single return at the end of a fixed period.
It keeps returning, compounding and influencing your life—sometimes in ways you could never have predicted when you made the investment.
And perhaps that is the most valuable ROI of all.