Your Education Can Increase Your Earning Potential

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Gathering of college seniorsThe value of a college degree is increasing.  In October of last year, the US Census Bureau released findings on the differences in lifetime earnings between those with and those without a college degree.

They found that there is a $1 million difference in the earnings of a college graduate (i.e. bachelor’s degree) and those whose highest educational achievement was high school.  A study by Georgetown University’s Center on Education found very similar results.

According to the Georgetown study, people with a bachelor’s degree make 84% more over a lifetime than those with only a high school diploma – this is up from a 75% lifetime earnings increase in 1999.

For those readers who like hard dollars, that equates to lifetime earnings of $2.3 million for those with bachelor’s degrees compared to $1.3 million for those with just high school diplomas.

Postsecondary education (past high school) has become the new gateway to the middle class.

But does this mean that everyone must attend a four year college to be successful? Not necessarily.  It is true that (on average) people who have attained more education do make more than people with less education BUT the major field of study and occupation chosen after graduation matter just as much as degree level. 

For example, individuals with bachelor’s degrees in …..

  • Science and engineering
  • Computers and math
  • Science (both physical science and social science)
  • Business

…. who had careers in…

  • Architecture and Engineering
  • Computers and math
  • Management
  • Business and finance
  • Sales
  • Science

….all earned above the average lifetime earnings of $2.3 million.

While liberal arts majors who had careers in…

  • Computers and math
  • Management
  • Business

….also earned well above the average lifetime earnings of $2.3million.

In addition, 28% of people with 2 year Associate’s degrees make at least as much as the average Bachelor’s degree holder – again mainly because of their choice of occupation.

What is important is achieving some level of post-secondary education and choosing a career in high demand.  Eschewing any type of training after high school is not an option in today’s work environment. Factories are heavily computerized; cars are now mini-computers; even houses are wired with the latest networking technology.

This means that an overwhelming majority of new jobs require higher skills – 20% of all jobs are now classified as STEM professions.  STEM jobs are categorized as such if they call for science, technology, engineering and/or math knowledge.  All require a degree or advanced training of some type.  Welding, gaming design, engine repair and drafting are just a few surprising career choices that require some level of STEM knowledge.

The takeaway from all this information is that higher education is not a guarantee.  For example, there are almost 300,000 Americans with college degrees working minimum wage jobs in 2012. In order to succeed, you must receive training and/or certification…the right training and certification.  So just because you did not like math or science in high school, it does not mean that you cannot be successful at a STEM job.  Life changes after high school and life experiences have a way of filling in the gaps of understanding that you might have experienced as a teenager.

So research industries and occupations to see what interests you, and do not immediately dismiss jobs simply based on needed training.  Training and certification programs exist everywhere to help with those criteria.  You might be surprised at what you will find.