When I was determining what I wanted to be in my career, I came across something called ROI, which stands for Return on Investment. When geared towards future careers, it was highlighted that choosing a college with a high ROI for your major was a wise choice.
ROI is used to determine whether an investment is valuable or profitable by comparing the output/profit to the investment. For example, let's say you decide to host a lemonade stand on a hot summer day. The total investment for all the materials (including lemons, sugar, a pitcher, a table, etc.) came to $500. You sell each cup for $2.50. Since it's a hot day, many customers come your way to cool down, and you sell 275 cups. This brings your profits to $687.50! This means there was a return on investment as you made $187.50 from this venture.
Let’s take it up a notch now. After selling your lemonade for a month, you notice another stand doing far better. Seeing your customers slowly gravitate toward your competitor, you start losing money and decide to invest in their business instead. You invest $100 in your competitor and decide to see how their business does over three years. Three years later, your competitor took the $100 you gave and turned it into $520. Your investment gain over the three years was $420, resulting in an ROI of 420.00%.
To learn how to calculate ROI, check out this calculator: ROI Calculator.
For more information, read our Part 2 blog on ROI and how to use it efficiently during the college admissions process!
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