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Can Money Really Reflect The Value Of College Majors?

Can Money Really Reflect The Value Of College Majors?

Starting a college education is an exciting decision that can enrich your life for decades into the future. There are many ways to look at the value of a college education, including money and personal growth. If you are concerned about the years of effort and expenses required to obtain a post-secondary education, give yourself the benefit of reviewing the value of advanced study.

1. Engineering Majors Earn The Highest Incomes

For students who are interested in maximizing their income, engineering is an excellent choice. Engineering majors tend to earn more than many other graduates. In fact, some specialized engineers (e.g. petroleum) have earned +$90,000 salaries upon graduation according to a Wall Street Journal report. For those who enjoy the precision of science, math and engineering, there are many wonderful ways to make an excellent income and make the world a better place.

According to The Hamilton Project, engineering majors tend to earn over $2 million over the course of their careers. In contrast, English Language and Literature majors tend to earn $1 million over the course of their working career.

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Lifetime Earnings By College Major (The Hamilton Project)

    2. Reduced Likelihood of Unemployment

    Unemployment is an unpleasant experience by any measure. Not only do you have the prospect of lost income, but you also have to contend with the unpredictable job search process. The unemployment rate for college graduates in the US peaked at about 4% in 2010 according to a Business Insider report.

    Avoiding the anxiety and discomfort of unemployment is a significant benefit! According to Robert L. Leahy, director of the American Institute for Cognitive Therapy, “Research suggests that being unemployed doubles a person’s chance of a major depressive episode and that unemployment is also highly associated with domestic violence and alcohol abuse.” (source: Unemployment takes tough mental toll, CNN).

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    3. Increased Access To Six Figure Jobs

    Earning a six figure income is one of the rewards available to college graduates. For example, most project managers with six figure salaries have a four year degree. Other highly paid careers such as medicine, law and engineering also require a college education. While there are significant numbers of people earning high incomes without a college degree, it is a much more difficult to earn a high income.

    4. Understanding The World

    For many fields of study- including the liberal arts and social sciences – you gain a much deeper understanding of the world. My university studies focused on history and it enhances every aspect of my life. Whether I’m seeking to understand the latest revolution, the economic forces that influence our choices or the impact that leaders have, history has enriched my life deeply. My knowledge of history also enhances my enjoyment of travel and ability to understand different countries.

    If you are studying the social sciences, humanities or another field that prompts your friends and family to ask “what are you going to do with that?”, don’t worry. Smart motivated people who understand the world usually find good opportunities.

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    5. Improved Critical Thinking Skills

    Improving the quality of your thinking and reasoning skills is one of the greatest benefits you receive in college. In writing an essay, you acquire the habit of evaluating evidence and contributing your perspective. In a science class, you learn how to collect and organize data and other tools of the scientific method. These skills protect you from being taken in by people who play fast and loose with the facts. Developing effective critical thinking skills is a life long activity, get started now with 9 Ways to Train Your Mind to Think Critically.

    6. Prepare For Life As An Active Citizen

    The freedom to vote and participate in politics is a great responsibility. The broad perspective you earn from college studies – especially those in the liberal arts and social sciences – make you into a better citizen. Richard Sigurdson, former Acting Dean of Arts at The University College of the Cariboo, emphasizes the broad social and personal benefits of studying the liberal arts in his essay Why Study Liberal Arts?

    A liberal arts education will enhance your knowledge and improve your understanding of the world and its people. Many say that knowledge leads to wise action, perhaps even to goodness. Thus, an Arts education may help you to perceive and to understand your shortcomings, allowing you to become a better citizen, friend, spouse, parent, human being. Arts courses often enable students to reach beyond their own experiences and imagine worlds far distant in time and space. By opening your eyes, ears and mind, a good Arts education can strengthen in you the virtues of tolerance, sympathy, and respect for others.

    7. College Graduates, Regardless of Major, Earn More Than High School Graduates

    On average, earning a four year college degree significantly increases your income over the course of your life. This finding has been proven again and again by numerous researchers. Additional higher education tends to result in higher incomes. The chart below comes from the U.S. Bureau of Labor Statistics:

    Earnings and unemployment rates by educational attainment, U.S. Bureau of Labor Statistics

      Featured photo credit: Trinity College Dublin/Gigglekid via pixabay.com

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      Bruce Harpham

      Bruce Harpham is a Project Management Professional and Founder and CEO of Project Management Hacks.

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      Published on November 20, 2018

      The Best Ways to Save Money Even Impulsive Spenders Can Get Behind

      The Best Ways to Save Money Even Impulsive Spenders Can Get Behind

      The truth is, there are many “money saving guides” online, but most don’t cover the root issue for not saving.

      Once I’d discovered a few key factors that allowed me to save 10k in one year, I realized why most articles couldn’t help me. The problem is that even with the right strategies you can still fail to save money. You need to have the right systems in place and the right mindset.

      In this guide, I’ll cover the best ways to save money — practical yet powerful steps you can take to start saving more. It won’t be easy but with hard work, I’m confident you’ll be able to save more money–even if you’re an impulsive spender.

      Why Your Past Prevents You from Saving Money

      Are you constantly thinking about your financial mistakes?

      If so, these thoughts are holding you back from saving.

      I get it, you wish you could go back in time to avoid your financial downfalls. But dwelling over your past will only rob you from your future. Instead, reflect on your mistakes and ask yourself what lessons you can learn from them.

      It wasn’t easy for me to accept that I had accumulated thousands of dollars in credit card debt. Once I did, I started heading in the right direction. Embrace your past failures and use them as an opportunity to set new financial goals.

      For example, after accepting that you’re thousands of dollars in debt create a plan to be debt free in a year or two. This way when you’ll be at peace even when you get negative thoughts about your finances. Now you can focus more time on saving and less on your past financial mistakes.

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      How to Effortlessly Track Your Spending

      Stop manually tracking your spending.

      Leverage powerful analytic tools such as Personal Capital and these money management apps to do the work for you. This tool has worked for me and has kept me motivated to why I’m saving in the first place. Once you login to your Personal Capital dashboard, you’re able to view your net worth.

      When I’d first signed up with Personal Capital, I had a negative net worth, but this motivated me to save more. With this tool, you can also view your spending patterns, expenses, and how much money you’re saving.

      Use your net worth as your north star to saving more. Whenever you experience financial setbacks, view how far you’ve come along. Saving money is only half the battle, being consistent is the other half.

      The Truth on Why You Keep Failing

      Saving money isn’t sexy. If it was, wouldn’t everyone be doing it?

      Some people are natural savers, but most are impulsive spenders. Instead of denying that you’re an impulsive spender, embrace it.

      Don’t try to save 60 to 70% of your income if this means you’ll live a miserable life. Saving money isn’t a race but a marathon. You’re saving for retirement and for large purchases.

      If you’re currently having a hard time saving, start spending more money on nice things. This may sound counterintuitive but hear me out. Wouldn’t it be better to save $200 each month for 12 months instead of $500 for 3 months?

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      Most people run into trouble because they create budgets that set them up for failure. This system won’t work for those who are frugal, but chances are they don’t need help saving. This system is for those who can’t save money and need to be rewarded for their hard work.

      Only because you’re buying nice things doesn’t mean that you’ll save less. Here are some rules you should have in place:

      1. Save more than 50% of your available money (after expenses)
      2. Only buy nice things after saving
      3. Automate your savings with automatic bank transfers

      These are the same rules that helped me save thousands each year while buying the latest iPhone. Focus only on items that are important to you. Remember, you can afford anything but not everything.

      How to Foolproof Yourself out of Debt

      Personal finance is a game. On one end, you’re earning money; and on the to other, you’re saving. But what ends up counting in the end isn’t how much you earn but how much you save. Research shows that about 60% of Americans spend more than they save.[1]

      So how can you separate yourself from the 60%?

      By not accumulating more debt. This way you’ll have more money to save and avoid having more financial obligations. A great way to stop accumulating debt is using cash to pay for all your transactions.

      This will be challenging, depending on how reliant you are with your credit card, but it’s worth the effort. Not only will you stop accruing debt, but you’ll also be more conscious with what you buy.

      For example, you’ll think twice about purchasing a new $200 headphone despite having the cash to buy them. According to a poll conducted by The CreditCards.com, 5 out of 6 Americans are impulsive spenders.[2]

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      Telling yourself that you’ll have the discipline to not buy things won’t cut it. This is equal to having junk food in your fridge while trying to eat healthy–it’s only a matter of time before you slip. By using cash to make your purchases, you’ll spend less and save more.

      A Proven Formula to Skyrocket Your Savings

      Having proven systems in place to help you save more is important, but they’re not the best way to save money.

      You can search for dozens of ways to save money, but there’ll always be a limit. Instead of spending the majority of your effort saving, look for ways to increase your income. The truth is that once you have the right systems in place, saving is easy.

      What’s challenging is earning more money. There are many routes you can take to achieve this. For example, you can work long and hard at your current job to earn a raise. But there’s one problem–you’re depending on someone else to give you a raise.

      Your company will have to have the budget, and you’ll have to know how to toot your own horn to get this raise. This isn’t to say that earning a raise is impossible, but things are better when you’re in control right? That’s why building a side-hustle is the best way to increase your income.

      Think of your side-hustle as a part-time job doing something you enjoy. You can sell items on eBay for a profit, or design websites for small businesses. Building a side-hustle will be on the hardest things you’ll do, be too stubborn to quit.

      During the early stages, you won’t be making money and that’s okay. Since you already have a source of income, you won’t be dependent on your side-hustle to pay for your expenses. Depending on how much time you invest in your side-hustle, it can one day replace your current income.

      Whatever route you take, focus more on earning and save as much as possible. You have more control than you give yourself credit for.

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      Transform Yourself into a Saving Money Machine

      Saving money isn’t complicated but it’s one of the hardest things you’ll do.

      By learning from your mistakes and rewarding yourself after saving you’ll save more. What would you do with an extra $200 or $500 each month? To some, this is life-changing money that can improve the quality of their lives.

      The truth is saving money is an art. Save too much and you’ll quit, but save too little and you’ll pay for the consequences in the future. Saving money takes effort and having the right systems in place.

      Imagine if you’d started saving an extra $100 this next month? Or, saved $20K in one year? Although it’s hard to imagine, this can be your reality if you follow the principles covered in this guide.

      Take a moment to brainstorm which goals you’d be able to reach if you had extra money each month. Use these goals as motivation to help you stay on track on your journey to saving more. If I was able to save thousands of dollars with little guidance, imagine what you’ll be able to do.

      What are you waiting for? Go and start saving money, the sky is your limit.

      Featured photo credit: rawpixel via unsplash.com

      Reference

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