Education continues to provide a sizable return on investment

A recent report from the Center on Education and the Workforce at Georgetown University revealed just how valuable a college degree continues to be. As tuition costs at many colleges and universities rise and families wonder if investing in a college degree is as wise as it once was, the CEW report can reassure parents and their children that a college degree remains a valuable asset that pays significant financial dividends over the long haul.

According to the CEW report, adults with a bachelor’s degree earn an average of $2.8 million during their careers. By contrast, adults with a high school diploma earn an average of $1.6 million over the course of their careers, while those without a diploma earn $1.2 million in their lifetimes.

One key consideration for individuals concerns when education may not provide the expected financial return. Though people pursue advanced degrees for a variety of reasons, including the potential to earn more money over the course of their careers, the CEW study found that the average person with a master’s degree earns $3.2 million in their careers, or just $400,000 more than someone with a bachelor’s degree. Though $400,000 is a significant sum of money, given the cost to obtain a master’s degree and the work required to earn it, some individuals, particularly those who would pursue such a degree solely to improve their earning potential, may not deem the investment worth their time or money. That’s a consideration for people, given the average cost of a master’s degree, which the Education Data Initiative reports is slightly more than $66,000.

Field of study is another consideration for individuals curious about the return to expect when investing in education. The CEW report found that the median career earnings among individuals with a bachelor’s degree in architecture and engineering is $3.8 million, while individuals with a bachelor’s in education earn slightly more than half that amount: $2 million.

As the cost of higher education continues to rise, students about to enter college and their parents should know that obtaining a college degree remains a worthy pathway to earning more money over the course of one’s life.