College and income mobility - Financial Literacy

College and income mobility

college graduation

You may have heard that the difference between having a college degree adds a million dollars to your lifetime income, over just having a high school diploma. But there are many aspects to statistics around this, including elements such as which kind of degree and where you live that can increase or decrease this million-dollar number.

U.S. census data released last month adds some further weight to the value of a college education. For example, high school dropouts have very low odds of a median or high-paying job. Specifically, a high-school dropout only has a 1% probability of ever earning a salary in the top 20% of all incomes; and only a 19% chance of earning an average-or-above level income. Conversely, even someone raised among the poorest American families, as a college graduate he or she has a 20% probability of having salary in the top 20% and a 67% chance of earning an average-or-above level of income.

Although there are numerous influences over income mobility up the income ladder, the most significant influence for anyone is completing a college degree. Plus, it also has a great impact on their children’s level of income if one or both parents have a college degree as well. The good news is that while most of the other income mobility factors are something you cannot control, your level of education is something you have total control over.

 

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