If you’ve been following the news, you’ve probably seen or read something about this whole college admissions scandal. In mid-March, the Department of Justice busted a bunch of rich and famous people in a nationwide scheme in which parents paid people to cheat on SAT or ACT exams and/or bribed school officials to help get their children into particular schools. It’s the largest college admissions case brought by the Department of Justice, and it’s getting a lot of press because of the people involved – famous actresses, bigshot lawyers, bigwig finance people, etc.
This bribery scandal is interesting to me, not really because of all the bribery details, but because of what this whole thing says about the craziness that a lot of us have when it comes to prestige. In this case, these parents were willing to pay hundreds of thousands of dollars in order to get their kids into elite schools – schools that, in my opinion, probably won’t make that much of a difference in their lives.
Think about it. There are pretty much two types of kids involved in this whole scandal. The first are kids like me (and probably many of you) – decently smart and hard-working, but just not quite good enough to get into the uber-elite schools. These type of kids will probably do just fine no matter where they go to school, especially when you consider the parents that these kids have and the resources and connections they’ll have access to as a result.
The second type of kid involved in this scandal are the lazy, screw-up kids. I’m sure people can change, but my guess is that an 18-year-old lazy, screw-up kid is probably not going to suddenly become an amazing student just because they’re going to an elite school. If anything, wouldn’t they just fail out?
Given these two facts, what was this whole college admissions scandal about? On its face, it’s about parents trying to help their kids succeed. But in reality, I don’t think it’s about the kids. It’s about the parents and their desire for prestige. And as can be demonstrated from this whole scandal, prestige can control us to the point that we do crazy things.
A Lot Of College Is About Prestige, Not The Education
I’ve always found the Ivy League and elite college thing interesting, as I think a lot of us think these schools are a bigger deal than they really are. One of my favorite articles is a 2005 New Yorker article by Malcolm Gladwell in which he writes about the world of Ivy League admissions (say what you will about Gladwell, but I’ve always liked his stuff, even if he sometimes doesn’t look at the nuances of things all that much).
In his article, Gladwell made the point that the choice of college was really about the branding aspect of it – not what the school actually did for you as a person. Elite schools don’t necessarily create successful students. Instead, they tend to churn out more successful students, not because the school made the student successful, but because the students entering these schools were more likely to be the type of student that would be successful.
In other words, someone good enough to get into an uber-elite school would probably have the drive and motivation to do well anywhere they went. Indeed, this has been demonstrated to some extent by studies showing that students that were admitted into two schools, one elite, and one less elite, ended up doing about the same from an income point of view later in life. The school didn’t matter as much as the person going to that school.
I first read this New Yorker article when I was already in college, but a lot of the points in the article made sense to me, especially because I had just gone through the whole college admissions process. At the time, I’d really wanted to get into uber-elite schools like Michigan or UCLA (one of the schools named in the scandal). I didn’t get into either school and ended up going to the University of Wisconsin – still obviously a good school, but not so good that my parents were bragging about it to their friends.
Did going to Wisconsin instead of a “better” school like Michigan or UCLA really make a difference in my life? Most likely not, especially since I ended up just going to law school afterward (which basically meant my undergrad institution was completely meaningless). My brother got into both Wisconsin and Michigan. If you ask him today, he wouldn’t say that Michigan made him better than if he had gone to Wisconsin. What it did do, however, was give my mother something to brag about to her friends. Her son was going to Michigan!
The College Admissions Scandal Is About Prestige
Given what we can assume about these kids – either they’re just normal students that weren’t quite good enough to get into the elite schools or they’re screwup kids that will probably be terrible students wherever they go – what exactly was the point of all of this? Here are my thoughts.
These Colleges Were For The Parents, Not The Kids. As an Asian-American, I know a lot about what college means for parents. Yes, education is important, but often, college is about what the parents can say about their kids. A bigshot lawyer or a bigshot finance guy can pay to get their kid into an elite school, then brag to their friends about how their kid goes to USC or Yale, or whatever. The school matters for their parents status, perhaps even more than it matters for their kid.
These Colleges Probably Won’t Make Much Difference In These Kid’s Lives. Take the example of Lori Laughlin’s daughter (aka Aunt Becky). I’d never heard of her before this whole scandal, but I saw that she has a YouTube and Instagram with millions of followers. She’s making money already. For her brand, going to college absolutely makes sense since she can sell the college experience on her YouTube and Instagram (think videos and pictures about decorating her dorm room, what clothes she wore on her first day of class, etc). But did it really matter that her college was USC, or just that she was going to college in general? I’d argue that she could have gone to any college with a decent looking campus – she didn’t have to go to USC. The same is true for many of these other students too – they’d fail or succeed the same wherever they went.
This Whole Thing Is Probably About Showing Off to Others. Bigshot professionals can often get stuck in a keeping up with the Joneses situation. Who’s got the bigger house, the better car, the bigger paycheck. This stuff might make us happy, but it sure seems like, a lot of the time, this stuff isn’t just about us. It’s about what we can show to others. The college thing sure seems like it was about what the parents could say to their friends about their kids. You can’t show off when your kid is going to some regular, state school. But when they’re going to an elite, private school – now you can show off.
Don’t Let Chasing Prestige Control Your Life
For a long time, I let my desire for prestige control a lot of my actions. Jobs weren’t about the job -they were about how good they looked to others (e.g. What do you do? I’m a big shot lawyer!).
As I’ve gotten older and especially as I’ve gotten into this whole financial independence movement, prestige continues to be less important to me. I care less about what others do and how much they make, and more about what they really do and how they’re living their life. Are they happy with their lives? And are they doing stuff they really enjoy? Or just trudging through life because they think they need to do that?
What we can learn from this is that we need to think carefully about what we’re doing. Is it for us? Or is it for the prestige?
These parents probably could have let their kids go to regular schools. Not only would it have saved them the bribe money, but their kids probably would have ended up doing just fine wherever they went (or been just as crappy wherever they went). Instead, they let prestige control their decisions. And it cost them.
So don’t let prestige control your life. That stuff can trap you in an endless cycle of trying to one-up everyone else. And that’s just not worth it.
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More Recommended Ebike/Scooters
Check out these other ebikes and scooters I've reviewed:
- Urban Arrow Ebike – Last year, I made one of the largest purchases I’ve ever made – I bought a $9,000 electric cargo bike from Urban Arrow. In my Urban Arrow review, I will discuss what it is and why I decided to buy this bike, as well as discuss how impactful a bike like this can be on your journey to financial independence.
- Troxus Explorer Step-Thru Ebike – The Troxus Explorer Step-Thru is a fat-tire ebike that I’ve had the pleasure of riding for a while now. It has amazing power, great looks, and awesome range. If you’re looking for a great fat-tire ebike that offers a lot for the price, the Troxus Explorer Step-Thru is definitely one for you to consider. Check out my Troxus Explorer Step-Thru Review.
- Hovsco HovBeta Ebike – The HovBeta is a folding ebike with great specs and a lot of interesting features, and importantly, it’s sold at a good price point. I’ve had a blast commuting with it and using it to do deliveries with DoorDash, Uber Eats, and Grubhub. Check out my Hovsco HovBeta Ebike Review.
- Vanpowers Manidae Ebike – The Vanpowers Manidae is a fat tire ebike that I’ve been riding as my primary winter commuting bike and have also been using it to do food delivery with apps like DoorDash, Uber Eats, and Grubhub. After clocking in a decent number of miles with this ebike, I wanted to write a post sharing what my experience with the Vanpowers Manidae ebike has been like. Check out my Vanpowers Manidae Review.
- Sohamo S3 Step-Thru Folding EBike Review – A Great Value Folding Ebike – The Sohamo S3 Step-Thru Folding Ebike is an entry-level folding ebike that offers a lot of value for the price point. I’ve been riding the Sohamo S3 for a while now, putting the bike through its paces, and I have to say, this bike has exceeded all of my expectations. Check out my Sohamo Review.
- KBO Flip Ebike – The KBO Flip is an excellent bike. I’ve had a great time riding it and think it’s a versatile bike that can be used for a lot of purposes and can fit a variety of lifestyles. It’s worked out great for me as a general commuter bike and as a food delivery bike. Check out my KBO Flip Review.
- Hiboy P7 Commuter Ebike – The Hiboy P7 is an excellent electric commuter bike that’s offered at an affordable price point. The range and speed of this bike are both very good, so you won’t have any trouble getting anywhere you need to go with it. As a food delivery vehicle, this is also good – with how much range it offers, you’ll be able to work all day on a single charge. Check out my Hiboy P7 Commuter Electric Bike Review.
- Himiway Escape Ebike – The Himiway Escape is an interesting bike for anyone looking for a moped-style ebike. If you’re a gig economy worker, the Himiway Escape is particularly interesting and it’s possible to think of it as an investment, especially if you can opt to do deliveries with the Himiway versus using a car. It’s not cheap, but you can definitely make your money back when you compare the mileage you’ll put on your car versus using an ebike. Check out my Himiway Escape Bike Review.
- Espin Sport Ebike – The Espin Sport is a good ebike for someone who is looking for an ebike that feels and rides more like a regular bike. There are many ebikes that are really only bikes in name. In reality, they’re basically electric mopeds. The Espin Sport, by contrast, is a bike you could probably ride without the battery and you’d feel like you’re just riding a regular bike. Check out my Espin Sport Review.
- Varla Eagle One Scooter – The Varla Eagle One is an excellent scooter that can make sense for a lot of people. It can work as a primary mode of transportation. You can use it to work on gig economy apps like DoorDash, Uber Eats, and Grubhub. And it can also be a recreational vehicle if you’d prefer to use it for that. Check out my Varla Eagle One Review.
- Varla Falcon Scooter – The Varla Falcon is an excellent scooter that offers a good amount of power at a lower price point compared to more powerful scooters. It’s not exactly an entry-level scooter, nor is it a high-powered scooter. I think it fits somewhere in-between those two categories – an intermediate scooter if I had to give it a category. Check out my Varla Falcon Review.
- Hiboy S2 Scooter – The Hiboy S2 is an excellent entry-level commuter scooter that's perfect for someone looking to save some money in transportation costs and improve their commute. Check out my Hiboy S2 Review.
- Hiboy S2R Scooter – The Hiboy S2R is one of the more interesting electric scooters I’ve been able to test out. It’s not a high-powered scooter, but for an everyday transport option, it’s very useful, especially given some of the unique features that it has. Indeed, for the price, the Hiboy S2R might be the best value scooter I’ve used. Check out my Hiboy S2R Review.
- Fucare H3 Scooter – The Fucare H3 is a fun scooter and I’ve enjoyed testing it out. For a daily commuter or quick trips or errands, the Fucare H3 is probably the scooter I’ll use. It’s portable and easy to maneuver, so it’s just easier to take on the road when I need it. Check out my Fucare H3 Scooter Review.
More Recommended Investing App Bonuses
For additional investing app bonuses, be sure to check out the ones below:
- M1 Finance ($100) – This is a great robo-advisor that has no fees and allows you to create a customized portfolio based on your risk tolerance. You also get $100 for opening an account. Check out my M1 Finance Referral Bonus – Step-By-Step Guide.
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- Moomoo (15 free stocks) – Moomoo is a free investing app currently offering 2 different referral bonuses if you open an account using a referral link. Read my Moomoo referral bonus guide for more information.
- Robinhood (1 free stock) – Robinhood gives you a free stock valued between $2.50-$225 if you open an account using my referral link.
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More Recommended Bank Account Bonuses
If you’re looking for more easy bank bonuses, check out the below options. These bonuses are all easy to earn and have no fees or minimum balance requirements to worry about.
- Upgrade ($200) – Upgrade is a free checking account that’s currently offering a $200 referral bonus if you open an account and complete a direct deposit. These bonus terms are easy to meet, so it’s well worth doing this bonus as soon as you can. Here’s a post I wrote with more details: Upgrade $200 Referral Bonus – Step By Step Directions.
- Ally Bank ($100) – Of all the banks out there, Ally is, without a doubt, my favorite. At the moment, Ally is offering $100 to customers who open an eligible Ally account and meet the requirements. Here are the step-by-step directions to earn your Ally Bank referral bonus.
- Fairwinds Credit Union ($175) – Fairwinds Credit Union is offering a referral bonus for users that sign up using a referral link. Fairwinds has no fees or minimum balance, so this is a particularly easy bonus to earn. Since this is a smaller credit union, my gut instinct tells me this offer won’t be around long, so if you’re in a position to meet the bonus requirements, grab this bonus before it’s gone. Here is my step-by-step guide on how to earn your Fairwinds Credit Union bonus.
- Chime ($100) - Chime is a free bank account that offers a referral bonus if you use a referral link and complete a direct deposit of $200 or more. In practice, any ACH transfer into this account triggers the bonus. This bonus is easy to earn and posts instantly, so you’ll know if you met the requirements as soon as you move money into the account. I wrote a step-by-step guide on how to earn your Chime referral bonus that I recommend you check out.
- US Bank Business ($900) – This is a fairly easy bank bonus to earn, since there are no direct deposit requirements. In addition, you can open the Silver Business Checking account, which comes with no monthly fees. Check out how to earn this big bonus here.
- GO2Bank ($50) - GO2Bank is an easy bank bonus that I recommend people take advantage of if they have an easy way of meeting the direct deposit requirement. I like that it’s easy to open the account and that the bonus pays out quickly. Check out my step-by-step guide on how to earn your GO2Bank $50 referral bonus.
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- Varo ($25) – Varo is a free fintech banking app similar to Chime or Current. It’s currently offering a $25 bonus to new users that open a new Varo account with a referral link. The bonus for this bank is very easy to meet, all you need to do is spend $20 within 30 days of opening your Varo account. Check out my step-by-step guide to learn how to earn this bonus.
Kevin is an attorney and the blogger behind Financial Panther, a blog about personal finance, travel hacking, and side hustling using the gig economy. He paid off $87,000 worth of student loans in just 2.5 years by choosing not to live like a big shot lawyer.
Kevin is passionate about earning money using the gig economy and you can see all the ways he makes extra income every month in his side hustle reports.
Kevin is also big on using the latest fintech apps to improve his finances. Some of Kevin's favorite fintech apps include:
- SoFi Money. A really good checking account with absolutely no fees. You'll get a $25 referral bonus if you open a SoFi Money account with a referral link, and an additional $300 if you complete a direct deposit.
- 5% Savings Accounts. I'm currently getting 5.24% interest on my savings through a company called Raisin. Opening a Raisin account takes minutes to complete, it's free, and all of your funds are FDIC-insured. I explain how it works, why I'm now using it to store my emergency fund and any other cash savings I have, and why I recommend everyone check it out in this review.
- US Bank Business. US Bank is currently offering new business customers a $900 signup bonus after opening a new account and meeting certain requirements.
- M1 Finance. This is a great robo-advisor that has no fees and allows you to create a customized portfolio based on your risk tolerance. You also get $100 for opening an account.
- Empower. One of best free apps you can use to monitor your portfolio and track your net worth. This is one of the apps I use to track my financial accounts.
Feel free to send Kevin a message here.
I wonder if some of the people involved even knew that what they were doing is a felony. Clearly, some did (like the whistleblower), but the two whose photos show up at the top at every article about it never bothered to go to any college themselves, or so I’ve read. Sure, they had to know it was underhanded and dishonest, but an actual crime?
It’s so stupid to put your career, your reputation, your future and your child’s future on the line just for your own social climbing. What’s really tragic is we’ll never know what the kids could have accomplished on their own. Lori Loughlin’s daughters had the same advantages that the wealthy have, the prep school educations, and whatever else they may have needed, but those things only increase your chances, they don’t guarantee anything. This Mark Singer person promised a guarantee with his slick sales pitch. Now he’s a cooperating witness. I guess no one ever told them there’s no such thing as a guarantee.
Now, the public assumes their kids were lazy, undeserving slackers who would be lucky to get into a community college. We don’t know that’s true at all. And one of them is a public figure, so that makes it even worse. Some knew what their parents were up to and some didn’t. This thing could follow them around forever.
It’s fascinating because it’s so stupid.
Right, that’s the shame there. For all we know, some of these kids were totally fine kids that were good enough to get into “lesser” schools and would probably have been fine there.
Interesting point about the fact that many of these parents maybe didn’t even realize they were committing crimes. We already have so many legal ways to bribe our kids into schools (legacy admissions, friends and networking, donations, etc). Paying someone to get their kid into an elite school really might have just seemed like par for the course.