Going To College:
Average annual cost of a four-year private college: $26,070
Average time to get a degree (four-year private college): 55 months
Unemployment rate for bachelor-degree holders, 2001: 2.2%
Average income for full-time year-round workers with a bachelor's degree, 1997 to 1999: $52,200
Percentage of Forbes 400 members with college degrees: 66%
Average net worth of a Forbes 400 member with a college degree: $2.13 billion
Not Going To College:
Unemployment rate for high-school graduates, 2001: 4.2%
Average income for full-time year-round workers with high-school degree, 1997 to 1999: $30,400
Percentage of Forbes 400 members without college degrees: 33%
Average net worth of a Forbes 400 member without college degree: $2.27 billion
Richest self-made Americans
with a degree:
Warren Buffett
University of Nebraska Lincoln, Bachelor of Arts/Science; Columbia, MBA
Net worth: $36 billion
Source:
Berkshire Hathaway (nyse:
BRK.a -
news -
people )
Steven Ballmer
Harvard University, Bachelor of Arts/Science; Stanford University, MBA, dropout
Net worth: $11.9 billion
Source: Microsoft
John Kluge
Columbia University, Bachelor of Arts/Science
Net worth: $10.5 billion
Source: Metromedia
Richest self-made Americans
without a college degree:
William H. Gates III
Harvard University, dropout
Net worth: $43 billion
Source:
Microsoft (nasdaq:
MSFT -
news -
people )
Paul Allen
Washington State University, dropout
Net worth: $21 billion
Source: Microsoft;
Charter Communications (nasdaq:
CHTR -
news -
people )
Larry Ellison
University of Illinois, dropout
Net worth: $15.2 billion
Oracle (nasdaq:
ORCL -
news -
people )
Michael Dell
University of Texas Austin, dropout
Net worth: $11.2 billion
Dell (nasdaq:
DELL -
news -
people )
Sources: Forbes, Chronicle of Education, U.S. Census Bureau, National Center for Education Statistics
Dropping out of school gets a bad rap in America. Words like "slacker" and "directionless" are usually pinned on dropouts--a word that itself is wrapped in stigma. But the list of the very richest Americans is filled with people who did not stick around long enough to get their college degree.
The idea behind attending college is to increase earnings potential down the road. But for
Bill Gates,
Michael Dell and
Larry Ellison, the ivory tower was getting in the way of their making big bucks. So they quit.
John Kluge used his time at Columbia University to lay the financial groundwork for his business empire--thanks to his out-of-class activities. America's 12th-richest man studied economics and nearly lost his scholarship after getting caught playing poker. By the time Kluge graduated, he had won $7,000--not bad for 1937. And we think that college grad
Steve Ballmer is probably happy that he decided to forgo his MBA at Stanford to help Bill Gates get Microsoft off the ground.
Most of the numbers in the table above would indicate that staying in school helps people increase their financial success. But that conclusion is not necessarily true. Who's to say that if more of the county's brightest young people chose work experience over the pressure to attend an elite (and expensive) university that they--and the world--would not be richer? Our microcosm of America's wealthiest would indeed prove that to be the case: The average net worth of Forbes 400 members without a college degree is 6.6% higher than members with a degree.
