You Won't Believe How Much More Money College Graduates Make

Is a college degree worth it? Based on recent income numbers, the answer is a resounding yes. College graduates earn more than twice as much as high school graduates, according to the 2022 Survey of Consumer Finances. But those numbers don't tell the whole story. Here's the average income for each level of education and what we can learn from it.

Average income by level of education

The Survey of Consumer Finances looks at the income of people who did and didn't graduate high school, those who completed some college, and college graduates. Here's the median income for each group:

• No high school diploma: $32,300
• High school diploma: $53,000
• Some college: $60,000
• College degree: $117,800

The median U.S. income is $70,300. College graduates are the only group that earned an above-average income, and it's an impressive $47,800 more.

There are a few good lessons here for young adults and anyone either in school or planning to further their education:

• A college degree can be a smart investment. Not every college graduate lands a high-paying job, but many do, and a degree certainly doesn't hurt. Investing in yourself is popular personal finance advice, and going to college is one of the best ways to do it.
• Every level of education you complete is important. There's also a sizable jump in average income with a high school diploma compared to not having one.
• If you go to college, make sure you get a degree. The difference in income between a high school diploma and some college isn't that much. Because of that, a partial college education probably isn't worth the time or the money.

Do you need a college education to be successful?

We've seen that people with higher levels of education earn more money, on average. This isn't the only area where education helps, either.

Studies have also found that college graduates are more likely to be millionaires. The Demographics of Wealth, a study by the Federal Reserve Bank of St. Louis, found that people with a college degree are more than four times as likely to be millionaires as people with high school diplomas.

But there are other factors at play here. College graduates are more likely to come from wealthy families, and that has significant advantages. For example, people from wealthy families often have connections that can help them land good jobs, and they're more likely to inherit wealth.

A college degree doesn't guarantee a large income, and plenty of people without degrees are financially successful. That being said, graduating college improves your chances of success, for several reasons:

• It opens up more job opportunities. Many high-paying jobs require a college degree.
• It can build your professional network. College is a place where you can meet people, including mentors and contacts who could help you find a job later.
• It improves your marketability. The amount of money you earn largely depends on the value you can provide. The skills and knowledge you gain in college can help you provide more value to employers and, in turn, command a higher salary.

There are other ways to learn new skills and build your professional network, especially with the rise in online learning. If college isn't for you, it's still possible to increase your income, save money, and eventually become a millionaire. But if you're currently debating whether college is the right choice, going and getting a degree is likely worth it. It could make landing a good job easier and put you in a much stronger financial position.