Personal Finance Essentials
The Benefits of Getting a College Degree
Done Right, a Degree Doesn’t Just Boost Your Paycheck
It Improves Your Health, Your Marriage, and Nearly Every Other Dimension of Your Life
Despite the shifting landscape, the case for a college degree remains compelling. Done the right way, a degree does not just improve your career prospects – it improves nearly every dimension of your life.
Better Salary and Financial Security
College graduates earn far more than those with only a high school diploma. The Bureau of Labor Statistics reports that the average high school graduate earned $51,781 in 2024, while the average college graduate earned $120,302 – 2.3 times more. Over an entire career, college grads earn a median $900,000 more than non-graduates, according to the Social Security Administration.
But the real story is not just higher income, it is what that income makes possible. There are only three ways to acquire money: earn it, inherit it, or win it. For most people, earning is the only realistic path. And your salary must be high enough not just to cover expenses but to leave money for savings and investment, because that surplus is what builds real wealth over time.
Households earning $100,000 to $199,999 typically have about 25% of their after-tax income left over after paying all expenses. Those earning $200,000 or more retain about 33%. These households build lasting wealth by compounding savings over decades. Households earning under $40,000 typically spend 52% more than they earn, relying on government assistance programs just to cover basic needs.
Better-paying jobs also come with benefits that represent enormous value on their own. Employer-paid health insurance for a family of four is worth more than $25,000 per year. Paid vacation for someone earning $75,000 is worth nearly $3,000. Employer retirement contributions average 4.6% of salary. Add other perks, and benefits can represent as much as 50% of total compensation.
Better Health and a Longer Life
College graduates are healthier and live longer. They have employer-paid insurance that makes preventive care affordable. Only 5% of college graduates smoke, compared to 17% of those with only a high school diploma, according to the Centers for Disease Control. College graduates exercise more, eat better and suffer fewer stress-related illnesses. Individuals with a bachelor’s degree live, on average, about seven years longer than those who only graduated from high school, according to a 2024 study by the Institute for Health Metrics and Evaluation at the University of Washington.
Stronger Relationships and Community
The divorce rate for college graduates is 27%, compared to 50% for those with only a high school diploma, according to the Bureau of Labor Statistics. College graduates tend to marry later and with greater financial stability – factors that produce stronger marriages. Seven in 10 children of college-educated parents go to college themselves, nearly three times the rate for children of non-graduates.
College graduates are more than twice as likely to vote, volunteer and engage in community activities as those without a bachelor’s degree, and they contribute nearly 3.5 times more to charity. They build deeper social networks – people they can count on, not just socialize with.
