Why is expenditure on education and health regarded as investment?

• They have an opportunity cost
• They cost money
• Involve risk and uncertainties
• They involve time preference
• They increase society’s quality of life once acquired
• They generate profitable returns in future e.g. through employment

Education lead path towards health, empowerment, and employment. Evidence shows that each additional year of education boosts a person’s income by 10% and increases a country’s GDP by 18%.