What Is a College Degree Worth to You?
- Estimates of increased lifetime earnings for college graduates: $280K-$1M
- Actual value of a college degree? Priceless.
- On average, a college degree pays off in both financial and non-financial ways
For most of those who have them, a college degree is more than just a "piece of paper" that looks good on an office wall. It can be a ticket to a lifetime of higher income, better health, and—believe it or not—better prospects for a happier life.
How much more money can I make with a degree?
First, let's take a look at the monetary benefits of having a degree. According to the U.S. Census Bureau, adults 18 and over who had at least a bachelor's degree in 2004 were earning an average of more than $51,000 a year, while adults who had only a high school diploma earned an average of about $28,600 per year. That is a difference of more than a million dollars over the working lifetime of the average adult.
Things improve for those who have graduate degrees. Advanced degree holders earned an average of more than $78,000 in 2004. Those without a high school diploma earned about $19,000 per year.
How else can having a degree improve my life?
However, the benefits of holding a college degree aren't strictly monetary. Studies have shown that higher education can also lead to a better quality of life in general, in areas such as:
Longer lifespan. Research funded by the American Cancer Society indicated that African American men with a college degree showed a 6.4 percent mean annual decrease in death rates, while death rates for Caucasian men were 5.2 percent higher for those without at least a high school diploma than white men who had at least four years of college. This is likely due to the fact that other studies have shown that college graduates have greater access to health care, better dietary habits, and lower rates of smoking.
Increased job security. Even in a rough economy, a college degree affords a greater level of job security. In November 2008, the unemployment rate for workers with a college degree hit 3.1 percent, according to the Bureau of Labor Statistics. While that was the highest level of unemployment for college grads in several years, it was still lower than the 10.5 percent unemployment rate for those without a high school diploma, and the national average unemployment rate of 6.7 percent.
Greater overall job satisfaction. While job satisfaction is a matter of opinion, a 2007 University of Chicago study of American workers interviewed between 1972 and 2006 showed that those who were most satisfied with their jobs had more education and made more money, while those doing unskilled labor reported being the least happy.
Greater likelihood of marriage. If you're looking for love, a college degree certainly can't hurt. While there may be no direct link between earning a degree and getting married, U.S. Census figures show that 18 percent of men between the ages of 40 and 44 with less than four years of college have never been married, up from just 6 percent 25 years ago. The rate of men between the ages of 35 and 39 who have never married is 22 percent, up from 8 percent a quarter century ago. According to an article in the New York Times, this may be explained by factors such as greater financial independence of women and a shrinking pool of women with similar backgrounds (i.e. women without college degrees).
Better academic success for your children. Studies have shown that when parents have higher levels of education, their children are more likely to perform better in school and eventually attend college themselves. Children of college graduates also enjoy better health rates, and college grads also have fewer unwanted children.
Better community leaders. Traditionally, college graduates are more likely to vote and volunteer for charitable causes.
Of course, college graduates don't enjoy these benefits simply because they have a degree hanging on the wall. More important than having the credential is the knowledge that comes as a result of having earned the degree in the first place.
What benefits could I see in my job by holding a degree?
College graduates have the benefit of working internships which may lead to good paying jobs, developing social networks as a result of attending classes on campus at least part-time or through online discussion boards, and attaining jobs which have better fringe benefits than those who work at unskilled trades such as: health care coverage, vacation and sick time, maternity leave, and child care benefits.
What about all the rich people who don't have a degree?
There are people who have become extremely successful in life without the benefit of a college degree, of course. Bill Gates, one of the richest men in America, dropped out of Harvard and later went on to found Microsoft. Dustin Moskovitz, the billionaire co-founder of the popular social networking Web site, Facebook, also dropped out of Harvard. George Eastman, the founder of Kodak, was a high school dropout. That doesn't mean an education isn't worthwhile. These men found success despite not having a degree or higher education, not because of it.
Does a college degree guarantee good health, a high-paying job or better overall satisfaction or enjoyment of your life? Of course, there are no guarantees in life. It is what you do with the education you receive in the pursuit of your degree that counts. An investment in your education is an investment in yourself.
Terrance Lee is a veteran news reporter with more than 20 years of experience in radio and television broadcasting. He currently works in marketing and public relations and is a distance learning student.
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