Why rich parents send their children to business schools?

Do rich persons, politicians and oligarchs send their children to business schools? Today we will talk about what business school is, what it takes to get into a business school and what salaries you can expect when you graduate from business school.

Essentially, a business school, such as Wharton MBA, is akin to a university or college tailored for individuals seeking to delve into the intricacies of business. 

Embarking on an MBA journey typically takes one to two years, contingent on the institution and region you choose. Now, let's delve into the two main groups of business school students. The first group, originating from specialist or technical roles, pursues an MBA to gain the leadership acumen and tools necessary for managerial success, aiming for lucrative Wharton MBA salaries.  

On the flip side, the second group of MBA students already possesses a business background and seeks enrollment in renowned business schools to bolster their careers, aiming for Harvard Business School MBA salary or Stanford MBA salary.

Not everyone opts for business school, and there are two primary reasons. Firstly, acceptance into top-tier business schools, such as Columbia or Cornell, requires an excellent CV. Secondly, the substantial cost associated with business school attendance, often exceeding US$100,000, can be a barrier. Some students receive financial support from their companies or take out loans to pursue their business school dreams, hoping for a return on investment in the form of impressive MBA graduate salaries.

Now, let's talk about the financial aspect, particularly the MBA graduate salary from leading business schools. Graduates from top business schools, including Columbia MBA salary, Wharton MBA salary or Cornell MBA salary, command impressive salaries, with about 50% earning around US$175,000 per year. However, where you work influences your salary more than the specific business school you attend, whether it's Instead MBA salary or Yale Business School MBA salary. Consulting emerges as a popular career choice for around 30% of business school graduates due to its lucrative nature, with McKinsey MBA salary and BCG MBA salary being particularly attractive.

In a nutshell, attending a business school is a significant decision influenced by various factors. So, if you're a smart individual interested in consulting but unable to afford business school, why not send over your CV and explore the possibilities of a rewarding career and impressive MBA graduate salary? 

Video transcript:

Why do rich persons, politicians, and oligarchs send their children to business schools? Today, we will talk about what a business school is, what it takes to get into a business school, and what salaries you can expect when you graduate from business school. 

Gabriel Goldbrain SUCCESS Training

I'm Gabriel Goldbrain, and I specifically developed the Goldbrain Success Training for those business school graduates who decided to become management consultants. Go to my website, www.gabrielgoldbrain.com, to find out more and how I can help you get a job in management consulting.

What is a business school?

So, first of all, what is a business school? A business school is like a university or a college where you can do a Master's of Business Administration. It is often also just called an MBA, which stands for Master of Business Administration. The curriculum of such a program is about analyzing businesses, analyzing markets, about solving business problems, and about learning everything that a successful manager needs. Completing an MBA takes between one and two years, depending which school you apply for and in which region you do your MBA. Generally speaking, you won't start an MBA straight out of college. An MBA is for experienced young professionals with about 2 to 5 years of work experience.

The two groups of business school students

There are basically two groups of business school students. The first group of business school students comes from specialist or technical roles. With doing an MBA at a business school, they want to gain a degree which makes them ready to take on leadership roles. They want to learn the tools for being successful managers. The second group of business school MBA students already has a business background. They want to have an MBA from a renowned business school to boost their career. The first group that comes from a technical background prefers the longer programs where they learn more about business because they lack it in their CV. As they want to become successful managers, they need all the tools that make them successful managers. Therefore, it's better to take the two-year, the longer programs for these kinds of candidates. For the second group, the reputation of the business school is very important, as well as that they have teachers who have taken managerial roles and from which they can learn and draw the necessary skills and experience. That's why they often take the shorter programs because they already have a lot of the skills that it takes, but they want to add a business school with a good reputation and get experience from other managers.

The two reasons why not everyone goes to business school

So, why does not everyone go to business school? There are two reasons. The first reason is that you need to have an excellent CV to be accepted by the leading business schools. The second reason is that attending a business school is expensive. It can cost you easily $100,000 to enroll in a business school and do an MBA. The expensive tuition fees are the main reason why only wealthy families can afford sending their children to business schools. These are oligarchs, politicians, entrepreneurs, and, in general, successful and influential persons who have the financial ability to pay the fees of the business schools. Other groups of students come from companies that give them financial support or that are so dedicated that they take out a loan on their own to do the business school studies. The last group are the extremely talented persons which get a scholarship, but that's a small minority. But don't get me wrong, the children of the wealthy families, they're also not stupid. They have excellent grades and a very good track record in their CV. So, the business schools they really only accept very, very smart students. And therefore, it would be unjustified to say that there is a bunch of rich kids with a few smart guys. That's not the case. All business school students are pretty smart, at least at the leading schools.

The salaries of business school graduates

Before we now have a look at the salaries of business school graduates, let me say a few words about Gabriel Goldbrain's mission. My mission is to level the playing field for the extraordinarily smart person who is not coming from a wealthy background. That's the candidates we train at Gabriel Goldbrain at the Success Training. Apply under www.gabrielgoldbrain.com if you're planning to become a management consultant. Now we're getting close to the juicy point of this video: the mean salary of business school graduates. As in most of my videos, I prepared a PowerPoint slide for you. On this PowerPoint slide, you will see the salaries of the most or some of the most renowned business schools in the world. If you analyze graduates of the leading US business schools, you will find out that about 50% of their graduates take home a base salary of $175,000 per year, not including bonuses. The same applies to European business schools, graduates or the mean graduate earns a little bit less than in the US, but that's primarily due to the location in which they decide to work. Because the US market for consultants, for investment bankers, is paid better than the European markets. So basically, where graduates work determines the salary, and it's not the business school. So if a European business school graduate works in the US, he will get a similar salary like the US graduates. So it's rather the region you work in than the business school you go to which determines your salary. Just be aware that European business schools, they have a broader diversity of regions where people, students, will work at, and that's why their averages look lower compared to the United States. Colombia and Cornell graduates tend to work in the US, whereas MIT and Yale have a higher percentage of graduates that work abroad, and that's the reason why the mean take-home base salary of these business schools is slightly different and why MIT and Yale are a bit lower compared to the other two business schools. About 30% of business school graduates pursue a career in consulting, which is amongst the highest paying industries for business school graduates. If you're a smart guy and you're interested in pursuing a career in consulting and you cannot afford going to a business school, send me your CV, and I'll check it out. And if you got what it takes, I will give everything to bring you into consulting.

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