What is the value of education? As another school year got underway this week, four things in the Bermuda news really stood out: the number of non-Bermudian accountants and nurses, 300 text messages a day, and the disparity in income between Bermudians in the workforce and the expatriate guest worker. No matter what you think, as a cross border financial planning specialist, these items are all intricately related.

Three of the four points are taken directly from the Bermuda 2008 Employment Report summary.

Accounting careers are always in demand. The history of accounting is as old as civilisation, among the most important professions in economic and cultural development. Accountants invented writing, developed money and banking, innovated the double entry bookkeeping system that fuelled the Italian Renaissance, were needed by Industrial Revolution inventors and entrepreneurs for survival, helped develop the capital markets necessary for big business so essential for capitalism, turned into a profession that brought credibility for complex business practices that sparked the economic boom of the 20th century, and are central to the information revolution that is now transforming the global economy. In Bermuda, 72 percent of the accountants are expatriates, the rest are educated Bermudians, but why aren't there more?

Sixty two percent of registered nurses come from somewhere else to care for us Bermuda residents. As early as 1311, nurses and "women surgeons" were referred to in the old French chronicles, and they were common enough in England in King John's time. Florence Nightingale, by her heroic services in the Crimea, brought nursing to the dignity of a profession. Nursing is a noble profession requiring great intelligence, compassion, skill and commitment. Our Bermudian nurses are respected for their contribution and service, but why aren't there more?

These percentages and numbers come directly from the above report. Yes, there is a difference between what the Bermudian earns on average and the non-Bermudian guest worker. But the question that is not really answered is what is the educational background and skill level of the non-Bermudian guest worker compared to the Bermudian. Dollars to doughnuts, the education and skill levels of expatriate guest workers in the professional industries are light years ahead of the rest of us.

Regrettably, the lowest wage-earning group was the hospitality industry workers. These people are our ambassadors of good will to our visitors and they work long hours. Even there education and skills are needed more than ever.

It all comes down to money. A qualified accountant with a university or master's degree (required for Certified Public Accountants) will generate lifetime earnings of more than $3 million more than enough to buy a house and then some. A registered nurse with a university degree is not far behind. These are US charts, folks - add an inflation multiplier to for Bermuda statistical purposes, say times 1.4 . The wonderful thing about both of these professions is that you can start to earn respectable salaries even as you embark at the beginning of these careers, as an example from bookkeeper to accountant to CMA, to fully qualified - with lots of help from employers along the way. Employers want you! A professionally educated workforce is always highly desired and successful.

One text message every two minutes, 30 text messages an hour, 300 text messages a day, 9,000 text messages a month, 109,500 text messages per year! Cell phones seen in the hands of children as young as five. It is amazing the selective learning when you are motivated. But, how can anyone possibly learn anything of substance that will generate future income when you are totally absorbed in vapour chat?

It's all about the money. Who is paying, who is receiving, who is losing, who is benefiting and how much income is this texting activity generating? The parents are paying.

The texters themselves are receiving exactly what they are sending, nothing. The only ones benefiting are the cell phone service providers and they are reaping the rewards. The employers maybe are losing another generation of employees to mindless pursuits.

How can anyone possibly be annoyed at the differences in employment income when we are not training up ourselves and our young people to reach for the stars? The choice to succeed is ours to make. Some choices will make you successful, but they require work. Others won't and don't.

Sources:

A Short History Of Accounting And Business, By Gary Giroux, September 1999

Nursing as a Profession for Women. Elizabeth L Seymour.

Martha Harris Myron, CPA, CFP(US) TEP(UK) is a Certified Financial Planner™ practitioner. She provides independent fee-only cross-border tax, estate, retirement, investment, and strategic planning services for Bermuda residents with cross-border and multi-national connections, internationally mobile people and US citizens living abroad. For more information, contact martha.myron@gmail.com">martha.myron@gmail.com or phone 296-3528.