Education as Consumption and as Investment

 

Education can be viewed as consumption, as investment, and as complementary consumption and investment. Education as consumption is education as a basic human right. Or is one of the democratic rights owned by every citizen. So that up to a certain level, the government must do the procurement. Therefore, in many countries basic education (SD and SLTP) is used as compulsory education. As a consequence education at this level education is not only a right but also an obligation for every citizen at a certain age level (in Indonesia between 6 and 15 years).

In terms of the nature of the need, the provision of education at this level is a public good. Then seen from the motivation, education as consumption is motivated by the desire to satisfy the need for personality development, social needs, the need for knowledge, and understanding. Furthermore, regarding the time orientation is now. The demand for education is influenced by the size of disposable income.

Education as an Investment Aims

To obtain a higher net income or rate of return in the future. The cost of education in this type of education is seen as the amount of money that is purchased to obtain or invest in a number of human capital (human capital) which can increase economic capacity in the future. Education as an investment is based on the assumption that humans are a form of capital (capital) like other forms of capital which are crucial for the productivity growth of a nation. Through his own investment, a person can expand alternatives to other activities so as to improve his welfare in the future.

Education as a Complementary Consumption And Investment

Education after compulsory education has the objective not only to gain knowledge, understanding, personality development, and satisfaction of social needs (status and prestige) as well as to get a better job, so as to get a higher net income for life in the future. Come.

In accordance with the description above, the amount of education a person receives will have an influence on the level of income he/she earns, although it does not fully guarantee. However, this trend is quite large. More visit here Besteconstuition.com Thanks.

 

 


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