People often argue about the value of a college degree, but the numbers prove that someone with a higher level of education will typically earn more than someone with less education.
An associate’s degree has the highest ROI overall, though other degrees will earn you much more over time.
Remember that each degree major or concentration leads to different job opportunities with different income prospects.
There’s a big debate over the value of a college degree. Some education advocates urge every young person to earn at least a bachelor’s degree. Detractors call college a waste of money.
Rather than listen to opinion, here’s an objective look at the cost of college and the most likely return on your investment.
Average income by education level
The Bureau of Labor Statistics tracks income by education level, which makes it easy to figure out how much you’ll make with a good degree.
As the education level goes up, the unemployment rate goes down until you reach the professional degree and doctorate level.
The correlation here is very clear: More education means you make more money. The only exception is among people with a doctoral degree. Going to the top of the education ranks likely means you will become a teacher or professor. They tend to earn a bit less than someone with a professional degree, but not much.
Medical school, dental school, pharmacy school, and law school have different time and cost commitments. We are going to skip the ROI for these programs because they all look so different. The same is true of PhD programs. And, in those cases, the student also works as a student-teacher at the same time, further blurring the true cost of attendance.
Also, keep in mind that these are averages. Your own personal abilities and skills, the college you attend, your chosen major or concentration, where you live, your industry, and other factors will all play a role in your income.
The „degree cost“ noted in the chart below is a total cost, assuming the same annual cost and the typical number of years to complete. „Total cost“ includes the cost of a required prerequisite degree. You can’t get a master’s degree without an undergraduate degree first.
The cost per year at a two-year public institution was $10,598 per year for 2017-2018. At a public four-year institution, you would pay an average of $26,593 per year. A four-year private college charges an average of $41,468 per year.
For graduate school, you would pay an average of $11,617 per year at a public institution or $26,551 at a private institution.
Foto: sourceNational Center for Education Statistics
Here we assume that graduate students went to a four-year public institution first for a bachelor’s degree. Estimating the cost of professional and doctoral degrees is a bit trickier, as the types of degrees and how they work vary widely.
Which education level has the highest return on investment?
So, which degree offers the best return on investment? Here are the numbers:
Foto: sourceNational Center for Education Statistics, Bureau of Labor Statistics
Given there are many variables and we used a lot of assumptions, I was surprised to see that the education level with the highest ROI is an associate’s degree. The very low cost, despite a much lower lifetime income, gives you a higher ROI.
A bachelor’s or master’s degree from a public college or university are the next best in terms of ROI, but both give you a much higher lifetime income, too.
In absolute terms where you look at the difference in cost versus what you’ll make, a higher education level is better no matter how you look at it.
Results can vary widely
For this analysis, we treated the incomes of public and private school graduates as the same. Results may vary based on the reputation of the school, career office quality, engagement of alumni networks, and other factors.
At the end of the day, your college experience is only as good as what you make of it. You also have to look at the specific degree, as a fine arts major isn’t going to start a career with the same job and income prospects as an accounting major.
But when it comes to the cost of education, on average, it will pay off very well.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
