👩‍🎓The Finances behind your college major

Let’s face it. Selecting a college major is a scary decision. It’ll guide the courses over your four years of college and hopefully launch you into your career. Financially, your choice can have lasting implications on your career trajectory and earnings potential. But when it comes to money and your major, starting salary is not the only consideration.

1. Earning Potential

You know that what you study will come with varying earning potentials. Fields like engineering, computer science, and health professions typically lead to higher starting salaries compared to humanities and social sciences. According to the U.S. Bureau of Labor Statistics^[1], engineering majors, for example, often have starting salaries exceeding $60,000, while graduates with degrees in arts or education may start closer to $30,000.

2. Job Market Demand

Beyond just salaries, consider the demand for jobs in your field. Industries like technology, healthcare, and renewable energy are rapidly growing, while others, like print media and certain manufacturing jobs, are declining. The U.S. Bureau of Labor Statistics' job outlook projections can provide insights into which fields are expected to grow, ensuring that your degree will lead to job opportunities.

3. Advanced degrees are freaking expensive!

Certain careers, such as medicine or law, require advanced degrees, which can significantly increase your educational expenses. Factor in the cost of graduate school when evaluating potential earnings. While some fields may offer high salaries, the investment in further education can be substantial. For example: If you know you’re planning on law school, taking the route of inexpensive undergrad options can help to ensure you don’t graduate with an overwhelming amount of debt.

4. Work-Life Balance

While financial factors are crucial, don’t overlook job satisfaction and work-life balance, which can indirectly impact your finances. A high-paying job that leads to burnout can result in decreased productivity and higher health care costs over time. Finding a balance between salary and personal fulfillment can lead to a longer lasting and more sustainable career.

5. Internships and Networking Opportunities

Certain majors provide better access to internships and networking opportunities, which can lead to higher-paying job offers after graduation. Fields like business, engineering, and technology often have strong connections with industry leaders, increasing your chances of indirectly landing that dream job.

Do the math on your major now, you won’t regret it! Remember, it’s essential to pursue something you’re passionate about, but ensuring that passion aligns with market demand and earning potential will help you thrive both personally and financially. Have questions about choosing a college major with your child? Click here to schedule a time to chat.

All the best,

Andrew Holmes, Certified College Planning Specialist™

Andrew@PlanWithFPS.com

617-630-4978

Financial Planning Solutions, LLC (FPS) is a Registered Investment Advisor. Financial Planning Solutions, LLC (FPS) provides this blog for informational and educational purposes only. Nothing in this blog should be considered investment, tax, or legal advice. FPS only renders personalized advice to each client. Information herein includes opinions and source information that is believed to be reliable. However, such information may not be independently verified by FPS. Please see important disclosures link at the bottom of this page.

[1] https://www.bls.gov/ooh/field-of-degree/