Third, if a college degree is the goal, it is critical to look at the financial return on investment (“ROI”), for any degree, as well as the ability to pay off any student loan debt, so that you can, in fact, meet all of your financial, life, and career goals at life. I know money isn’t everything, and it wasn’t for me, but it’s something to think about very seriously.
In this regard, as we have discussed a lot, it is very important to research the average salaries in the profession you are looking for, and I would say about the first five years in that profession.
However, here are some of the highlights of Bankrate.com’s job report, which may or may not surprise you.
“It’s important to compare student loans before selecting a provider to ensure you have the best deal.”
The study ranked 159 majors based on several factors related to degree holders (weighting in parentheses): median annual income (70%), unemployment rate (20%) and career paths that do not require education beyond a bachelor’s degree (10%). Architecture ranks as the most valuable undergraduate major while visual and performing arts ranks as the least valuable.
Architecture majors command a median annual salary of $90,000 (locked at number 17) along with a low unemployment rate of 1.3% among graduates (ranked 9). The percentage of architecture majors with an advanced degree (29.3%) is relatively low (45th lowest), which means that architecture graduates are less likely than others to incur additional expenses and/or deferred income for an advanced degree.
Those with a degree in visual and performing arts have the lowest average annual salary ($35,500) and face an unemployment rate of 3.6%, the 17th highest for any major. In addition, 28.7% of visual and performing arts graduates have invested in advanced degrees, and over 41 other majors.
The five most valuable undergraduate majors are: architecture, building services, computer engineering, aerospace engineering, and transportation sciences and technology.
– Bottom line includes: Clinical Psychology, Composition and Speech, Drama and Theater Arts, Miscellaneous Fine Arts, Visual and Performing Arts.
The potential for a high salary isn’t everything when it comes to evaluating the value of a particular college major. For example, nuclear engineering—which is associated with the fourth-highest median income among degree holders ($100,000)—failed to make the top 25 most valuable majors overall (ranked 27) due to a 3.7% unemployment rate among graduates (ranked fifth). ten). In addition, about half (50.6%) of those with a nuclear engineering degree went on to earn an advanced degree (ranked 41st highest).
Furthermore, an advanced degree does not always translate into higher earnings. Four of the five majors with the highest percentage of advanced degree holders (ranging from 73.5% to 94%) do not make the top 50 median salary.
You can view the report at https://www.bankrate.com/loans/student-loans/most-valuable-college-majors/
While we’re on the topic of college, The Wall Street Journal recently published its 2022 ranking of American colleges.
The rankings are based on 15 key indicators that rate colleges in four areas: outcomes, resources, participation, and environment.
The results are 40% of the weighting, and measure things like the salary graduates earn, the graduation rate, and the debt burden they bear. For this indicator, top schools should come as no surprise. They are: Princeton, Yale, Duke, Harvard, MIT, Stanford, Cornell, Caltech, University of Chicago and Dartmouth.
The top ten schools generally include several of these schools, but also Brown, Johns Hopkins, and Northwestern.
My school, Georgetown, was ranked 32 out of 500. Local colleges include the University of Rochester (No. 52); RIT (#154); St. John Fisher (#320); and Nazareth (#377).
You can and should see the report at wsj.com/collegerankingsreprint.
On a final topic, as Americans begin holiday shopping, the “buy now, pay later” trend appears to be on the rise, especially among those without credit cards or with less-than-stellar credit scores and credit reports. Reports and research show that retailers see higher sales and profits as a result, although the fees they incur, often between 3% and 5%, are often higher than credit card fees. If you’re going to buy now and pay later, make sure you understand any interest or fees that may be due on late or missed payments.
John Ninfo is a retired bankruptcy judge and founder of the CARE National Financial Literacy Program. Find his previous weekly columns at http://www.mpnnow.com/search?text=Ninfo.