EDUCATION AS AN INVESTMENT

EDUCATION AS AN INVESTMENT

Traditionally, education has been associated with the process of instructing young people in ways which form the mind and character necessary to become good citizens and employable workers. Today, education has become a life-long process, increasingly connected to schooling, human and economic development, and productivity – with beneficial personal and national outcomes.

            EDUCATION AS AN ECONOMIC GOOD

Education is regarded as the most important determinant of a person’s economic and social success. In economy, terms of education is an economic good because anything that satisfies a human wants is considered a good. Consumption can be determined as simply paying the cost for a good or services and receiving all of the benefits for that good or services immediately. Education as consumption is education as a fundamental human right one of the right of every citizen in each country. It defined as consumption goods because a lot of the students could be said to be enjoyed the lectures and the homework given including the reading. This can be seen where many countries set the basic education that is primary and secondary school were used as compulsory education. Education is also seen as public goods. It considered as consumption as it motivated by a desires to satisfy the need for personal development, social needs, and also for the needs of knowledge for understanding.

EDUCATION AS AN INVESTMENT

An investment can be generally described as the use of money for the purpose of profit making or achieving success in business. An investment may also include spending money to improve the quality of existing human resources in an organization through education.  Education is a service sector because it is designed to produce educated men and women who will contribute to the labour market and ultimately the economy. Investing in education can take many forms including the establishment and management of schools as a business venture and/or the acquisition of any particular type of education by individuals to enhance their employment prospects and income earning capacity.

Advantages of Investing in Education 

1.  Production of Human Capital 

The economic sector benefits directly from the education sector because the products of education are the skilled or semi-skilled labour for the economic sector. The application of economic principles in the provision of education ensures adequate production of relevant human capital and the reduction of wastage in the process of human resource development.

2.   Cost Effectiveness  

Investment in education produces a labour force that is relevant to the economy in terms of quality and quantity. The production of irrelevant labour amounts to the increased unemployment and a waste of education resources. Thus investment in education helps for cost effectiveness.

3.  Programme Planning

Adequate investment in education ensures that suitable education programmes are properly planned and implemented for the various levels of education. This is irrespective of whether the system of education is formal, informal or non- formal. 

4.  Creation of Awareness 

Students in various fields of study are exposed, in the course of their study, to the economic opportunities and benefits that accrue from the careful application of the skills they have acquired through education. The student is also equipped with necessary managerial skills that will enable him/her to function in the world of work and entrepreneurship