Spending on an education is considered an investment because it involves a sacrifice of current income for higher expected future income.

Question

Quizplus · Accepted Answer

When individuals or their families spend money on education, they are giving up current income and potentially accumulating debt in order to invest in their future earning potential. By obtaining more knowledge and skills, an individual may qualify for higher-paying jobs and be able to earn a higher income over the course of their career. Therefore, spending on education is considered an investment in one's future financial success.

Spending on an Education Is Considered an Investment Because It