Is your child heading off to college?
The degree they choose could have a significant impact on their financial future.
Different college degrees lead to varying levels of future earnings, with some promising more than others.
CollegeNPV is a research organization which conducts independent analysis of expected financial outcomes of various college/university degrees using data sourced from both the U.S. Department of Education and Bureau of Labor Statistics. According to their analysis some degrees offer a far brighter future than others, at least when considering expected financial value.
CollegeNPV posits the return on investment of a college degree is the expected value of that degree, net of all debt, compared to simply entering the workforce after high school.
This graphic shows the average return on investment of a degree in the U.S., based on analysis from CollegeNPV of data from the U.S. Department of Education and Bureau of Labor Statistics. Again, their calculation shows the return on investment of a degree as being the expected lifetime value of the degree (net of debt) compared to entering the workforce after high school.
Predictably, engineering, computer sciences, mathematics, and business degrees are among the most promising degrees for students in the United States. These are the degrees with the highest surplus of expected lifetime income (less debt) compared to entering the workforce with a high school diploma.
The degrees CollegeNPV has deemed to ill-advised investments from an earnings perspective include those such as visual and performing arts, theology and English.
Heading to college is an exciting time in your child’s life. Giving them the opportunity to chase their dreams requires forethought and planning. If you are confused where to start, or just looking for some guidance, it often helps to have a financial professional review your situation and work on a plan together.
If you would like, schedule a free phone conversation with me – I’d love to learn more about your unique circumstances and help craft a plan for your child’s education with you.