You’ve worked hard to save and plan—so it’s only natural to want reassurance that college is still the right move.
If you’re like most families visiting College Countdown, you’ve been saving for years. Now, you’re approaching a moment of truth— that point when a voice in the back of your head asks, “Are we making the right choice?” Maybe a friend said something, or a news report got you thinking. Or perhaps your child has expressed uncertainty themselves.
The good news is that, as the Executive Director of the ScholarShare Investment Board and a mother and grandmother, I like to think of myself as the Fact-Checker-In-Chief when it comes to questions like these. I believe decisions like this should be based on reliable facts, not just the latest headlines or social media soundbites.
The most important fact to remember is that everyone is different. You and your child need to make the best choice for your family.
That said, many people are asking whether college graduates still earn more than those without a degree, and by how much. When I graduated from CSU, the average college graduate earned about 63% more than someone with only a high school diploma. Today, that figure remains virtually unchanged. According to the latest data from the U.S. Bureau of Labor Statistics, for every dollar a high school graduate earns, the average college graduate earns $1.68, and someone with an advanced degree earns $2.06.
Another common question is: “What about all those well-paying jobs right out of high school?” Here are two key facts:
- 87% of those with just a high school diploma earn less than the average college graduate.
- It is important to distinguish between a job and a career.
People with a college degree are more likely to have careers with upward mobility and growth opportunities. They are more likely to hold full-time positions with paid vacations, flexible work arrangements, retirement plans, and health insurance.
I often hear concerns about recent graduates who struggle with student loan debt or unemployment, like the neighbor’s cousin’s son, who has a college degree but isn’t working and is living in their basement. Here are two more facts:
- People with a college degree are less likely to be unemployed. About 24% less according to the latest data, but more than 50% less during the peak of COVID and during the recession in 2008.
- The data also shows that 30-year-olds with a college degree are far less likely to be living with their parents for financial reasons than their peers without a college education.
Of course, there are many valid reasons why adult children may live with their parents—stay for caregiving, education, or other personal goals. But in general, a college degree tends to reduce the likelihood of financial dependency.
4638304
