The changing attitudes about college have had a significant impact on college enrollment. From 2010 to 2021 (the most recent available data), enrollment has declined 15% across the board. That may sound like a modest decrease, but equates to 2.7 million fewer college students now than there were a decade ago.

I enrolled in college in 2011, right at the peak of college enrollment in the US. I felt that college was a requirement to getting a good-paying job and most of my classmates felt the same. I believe high school graduates today feel like they have more options after graduation than I did, which is a great thing. There are good-paying jobs available that don’t require a college degree and, maybe more so than in the past, those jobs are not looked down on. 70% of white-collar workers say that blue-collar jobs are more respected now than they were 10 years ago, and over 90% of blue-collar workers are proud of the work they do.

There are many paths to financial success that don’t involve a college degree, but I believe the pendulum has swung too far in the opposite direction. Not only is college still worth it for many students, the data shows that, while attitudes about college have shifted over the last decade, college is now a better value.

Why college is a bargain (on average)

The shifting attitudes about college are understandable. For decades, tuition costs have been rising much faster than inflation. As costs have risen, so has student loan debt. When you think “recent college graduate,” what image comes to your mind? Is it a successful white-collar professional or a struggling Starbucks barista? For many Americans, the latter image has firmly taken over and “recent college graduate” has become synonymous with “struggling young adult.” 

Why is this? I blame the decline of thoughtful journalism and the increased prevalence of clickbait, sensational headlines. You simply aren’t going to see many headlines that read: “Most College Graduates Doing Good, Data Shows,” or “Lauren, 22, Graduates with Little Debt and Receives Great Job Offer.” Instead, you often see headlines such as “Woman’s Dream of Being a Nurse Leaves Her $110,000 in Debt” or “Why Today’s Graduates Are Screwed.

If you look beyond the clickbait headlines, college actually looks like a bargain. Over the last few years, inflation-adjusted tuition costs have fallen. It is now cheaper, in real dollars, to attend college in 2025 than it was when I enrolled in 2011. If you think that college costs are moderating because earning potential is decreasing for college grads, well, you’d be wrong. College graduates have historically made significantly more than those without a degree. Instead of shrinking, that gap is widening.

For young workers aged 22 to 27, the average high school graduate without a college degree makes $36,000 per year, compared to $60,000 for the average college graduate. The unemployment rate is twice as high for those without a college degree. Self-reported financial wellbeing for college graduates is 87%, compared to 67% for those without a degree. Median lifetime earnings for college graduates are $1.2 million higher than non-graduates. All of the data shows that, on average, attending college is a great decision.

College offers economic mobility

I wasn’t poor growing up, but I didn’t have many advantages that wealthier kids often have. I attended (and graduated from) a Title I high school. I could only afford to take the SAT and ACT one time each, and I didn’t have any tutoring or material to study to prepare. The exams also weren’t offered in my county, so I had to wake up at the crack of dawn and drive 45 minutes to an unfamiliar high school to take them. My 1996 Buick Century that got me there was the worst looking car in the parking lot. I often felt embarrassed to drive it.

Growing up, my mom took us to the public library at least twice a week. I loved learning and I was always a good test taker in school. I had advantages over many of my friends. Neither of my parents were on drugs and both were present. We always had food to eat and never went hungry. I didn’t have to worry about providing for my household at a young age. My parents made it clear that doing good in school was the most important thing for me growing up.

Those advantages in life helped me do very well on the ACT, which got me into a great college, which led me to where I am today. Although I didn’t realize it until I was older, my parents knew that a college education could allow me to move up the economic ladder. High school students today considering college actually have greater potential for economic mobility than I did, not less. In fact, an analysis of the outcomes of over 30 million students found that public universities offer the greatest economic mobility. For most kids, college is your best chance at climbing the ladder.

It is worth repeating that college is by no means the only way to achieve financial success, however you measure it. Some of the wealthiest individuals in the country never graduated college. It isn’t a golden ticket and you must be very careful deciding which college to attend, choosing a major, and paying for school (check out this article for some tips on how to do college the right way, and read up on the best (and worst) college degrees here). However, my story, and the millions of stories just like mine, are proof that public education and public universities are a great path to becoming financially secure.

Is college worth it?

Ignoring all of the potential non-financial benefits of going to college, what does it take for college to be a smart financial decision? This is far from an easy question to answer, but we can at least do a financial spot check with a simple math equation that accounts for the opportunity cost of the dollars you would spend on education.  The estimated opportunity cost of a typical degree comes in at a whopping $10 million if you were to instead invest the average annual college cost from ages 18 to 21 until you retire at 65.

$10 million is a LOT of money by retirement, but it isn’t crazy to think you could make up that difference with a college degree. If you went to college and were able to earn an extra $14,640 per year compared to someone not attending college, and invested that amount each year, you would end up with the same $10,452,794 by age 65. College graduates earn an extra $32,112 per year on average, although they are also more likely to live in high cost of living areas and may not be able to invest the full difference in earnings each year, even if they wanted to.

This is a very simplified example. Some students will be paying much less for college and some will be paying much more. Your experience at college has value too, and your expected career earnings are not the only benefit of attending college. College graduates are 72% more likely to have a retirement plan at work, 2.2x less likely to lose their job, 44% more likely to report their health as good or excellent, participate more in their community, are happier, and live for seven years longer than those who have never gone to college. I think it’s obvious that not all of this is causation and some is correlation, but it’s clear that college does have non-financial benefits.

Your future career aspirations are significantly more important than whether or not you attend college. There are plenty of high-paying jobs available to those who do not attend college, and plenty of college degrees have low starting wages. The bottom line is that you can be successful, in life and financially, whether or not you attend college.

If you are exploring what paths are available to you without attending college, check out our list of the top-paying jobs without a degree. Since the decision to attend college can be costlier and riskier, I’ll focus on the best and top-paying college degrees in this article.

Best college degrees in 2024

The Federal Reserve compiles data on outcomes by major, which looks not only at early career wages but mid-career wages, unemployment rate, and underemployment rate. This list will consider all of these factors.

1. Engineering

Looking at the numbers, it’s hard not to consider engineering the best college major out there. The top five highest-earning jobs for mid-career workers are all engineering: chemical engineering, computer engineering, aerospace engineering, electrical engineering, and mechanical engineering (in order from highest salary mid-career, $120,000, to mechanical engineering, with $105,000). If you look at early career wages, engineering majors still hold four of the top five spots. Unemployment rates are low, coming in around 3% to 6%.

2. Computer Science

It’s no surprise that computer science is one of the best college majors out there. Early career graduates earn about $73,000, with those further along in their career making $105,000. The unemployment rate among computer science is 4.8%, so they don’t have much trouble finding a job.

3. Pharmacy

Pharmacy graduates don’t make as much money starting out in their career as some other majors, at $55,000, but earn six figures when they reach the midpoint of their career. Job prospects are good for pharmacy majors too, with an average unemployment rate of 4.8%.

4. Finance

Hey it’s us! Jobs in finance are very well-paying, with a median early career salary of $60,000 and mid-career wages of $100,000. They have an easy time finding jobs as well, with an unemployment rate of just 4.1%.

5. Nursing

Nursing isn’t as lucrative as some other fields, with early career wages of $55,000 and mid-career of $75,000, but they are in HIGH demand. Only 1.3% of those with a nursing degree are unemployed. If you are concerned about your job prospects after graduation, nursing could be a great field to investigate.

Worst college majors in 2024

The “worst” college majors aren’t always worth avoiding, but it’s important to be aware of the downsides before you go into debt to get a degree that may not have the return on investment you were expecting. It is interesting and ironic that some of the worst majors also have higher advanced degrees as a percentage. Making you wonder if employment is the objective or nudging struggling graduates into more advanced degrees and potentially even more student loan debt.

1. Fine Arts

Those with fine arts degrees unfortunately have a high unemployment rate, at 12.1%, and median early career wages of $40,000. The share of those with a graduate degree is 23.2%, which means many attend college for longer than four years and may be more likely to take on student loan debt.

2. Family and Consumer Sciences

The unemployment rate for family and consumer sciences graduates is also higher, at 8.9%, and early career wages are $37,000. 32.9% of FACS graduates have graduate degrees, which again means more time spent in school and potentially more money spent on school.

3. Social Services

Those in social services don’t have a hard time finding a job, with an unemployment rate of 3%, but early career wages are $37,000 and mid-career wages are $52,000. The majority, 52.4%, also hold a graduate degree.

4. Early Childhood Education

Early childhood education majors have jobs, with 3.1% unemployed, but salaries start lower and don’t have much room for growth. The early career salary is $40,000 and mid-career salaries are just $43,000.

5. Philosophy

On average, philosophy majors have a more difficult time finding a job, with a 9.1% unemployment rate. Early career salaries start at $42,000 and reach $68,000 by mid-career. However, a whopping 56.5% of philosophy majors have graduate degrees.

What are good majors that will be in-demand in the future?

Your college major won’t determine just what you are doing for the next few years, it can determine your career path for the next 40 years. With that in mind, it’s important to pick a future-proof major that will continue to be in high demand later in your career. The Bureau of Labor Statistics projects the growth rate of different career fields over the next 10 years, and predicts careers in software development and computer science to continue to grow very quickly. With our aging population, other fields expect to see a surge in growth, including actuaries, nurse practitioners, home health aides, and physical therapist assistants.

Choosing whether or not to attend college, and which college and degree program to choose, is a decision that should not be taken lightly. You can be happy and successful without attending college, but if your path leads you there, you must do it right. Choosing one of the best majors can help you ensure you have a job after graduation and earn a higher salary than your peers. The biggest takeaway is to be purposeful in your higher education decision. Around 70% of college graduates work in fields outside of their college major. As with most big decisions in life, make sure you begin with the end in mind and measure twice and cut once to ensure you are happy with the outcome and set yourself up for success.

When it comes to saving for your children, what should you think about when deciding between a taxable brokerage account and an UTMA?

The average cost of attending college for one year is $26,027. If someone instead invested that amount each year from ages 18 to 21, for a total of $104,108, they would have $10,452,794 invested by age 65 (assuming a 10% annual rate of return).

The opportunity cost of spending the average annual cost of college attending rather than investing could be over $10 million by retirement. It’s a number that sounds almost incomprehensible and impossible to overcome – but starting at such a young age makes it more attainable than you would think.

To reverse engineer the math we just did, let’s assume someone graduates college at 22 and wants to invest an amount per month to catch up to the person who did not attend college. To reach $10,452,794 by 65, the college attendee would need to invest $1,220 per month every month from age 22 to 65. In other words, their college degree would need to earn them an extra $14,640 per year for it to be “worth it.”

That’s certainly not a small number, but it’s much smaller than $10 million. It’s very possible for a college graduate to earn $14,640 per year more than someone who didn’t attend college, and many DO, which makes college worth it in many situations. Ultimately, college being a smart decision often hinges on choosing your major wisely. Check out the list of the top 5 highest-paying college degrees below.

1. Petroleum Engineering
2. Industrial Engineering
3. Computer Science
4. Interaction Design
5. Public Accounting

The average cost of college may not be representative of what college will cost for you. If you attend private college, the opportunity cost of going to college could be well over $20 million by retirement. There are many ways to lower the cost of college.

How to Do College Right

• Apply for scholarships.
• Work for a company that offers tuition reimbursement.
• Take core classes at more affordable alternatives (like community college).
• Apply for all financial aid you can.
• Keep student loan debt below your expected first year salary.

Some colleges offer scholarships to students when they are accepted, and some take a little more work to apply for. While not every student will receive scholarships, every student should at least see which scholarships they may be eligible for and apply for all they can. I worked for a company that offered tuition reimbursement as an employee perk while I was in college. There may be certain requirements; in my program, you had to be taking classes for a certain major and maintain good grades, but it can be a huge opportunity for college students to get extra money to pay for school.

I enrolled at a major university right out of college and didn’t even consider taking core classes at a community or technical college, but I wish I had. Classes can be a fraction of the cost and they count the same as courses taken at a more expensive university. Outside of scholarships, FAFSA, and tuition reimbursement, there may be even more opportunities for financial aid. Grants, apprenticeships, work-study programs, and other aid may be available.

If you do need to take out student loans to help pay for college, keep your total student loan debt below your expected first year salary. Following this rule will not only keep your student loan debt manageable, but will ensure you do your research about your major and know your earning potential.

Not everyone needs to attend college! There are plenty of good-paying jobs that don’t require a four-year college degree. These jobs still require highly-skilled, trained employees, but can be a less costly path for those that don’t believe college is for them. The list below shows the top 10 highest-paying jobs that do not require a college degree.

Top-Paying Jobs Without a Degree

1. Air Traffic Controller ($122,990)
2. Nuclear Power Reactor Operator ($100,530)
3. Transportation/Storage Manager ($92,460)
4. Police Supervisor ($87,910)
5. Commercial Pilot ($86,080)
6. Power Plant Dispatcher ($85,950)
7. Radiation Therapist ($85,560)
8. Elevator Installer and Repairer ($84,990)
9. Detective/Criminal Investigator ($83,170)
10. Power Plant Operator ($81,990)

When I was in high school, I remember getting the impression that anyone who didn’t go to college was considered a failure and would never have the chance to earn much money. The jobs most commonly associated with not going to college were what we traditionally think of as “dead-end” jobs, such as in fast food, customer service, or other similar industries.

Fortunately, I think attitudes about college are slowly changing. The rising costs have certainly been a catalyst for change. Just 35% of Americans 25 and older have a four-year college degree or higher, and 3 out of 10 billionaires do not have a college degree. College can be a great tool to increase your earning potential, and makes sense for many, but there’s no shortage of extremely smart and talented individuals that are successful without ever attending college.

Ultimately, the path you choose is up to you – becoming successful and wealthy can be possible if you go to college and take out student loans. It can be possible if you never attend college. Understanding the value of your time and return on your investment can help you build wealth no matter how your journey begins.

How do you balance investing for your child’s college educations vs. saving for your own retirement? Is one more important than the other?

Want to know what to do with your next dollar? You need this free download: the Financial Order of Operations. It’s our nine tried-and-true steps that will help you secure your financial future.

In this highlight, Brian and Bo talk about if you should save for your kid’s college or keep maxing out your investments.

Want to know what to do with your next dollar? You need this free download: the Financial Order of Operations. It’s our nine tried-and-true steps that will help you secure your financial future.

Before making any decisions about your future plan, it may be worth sitting down to think about what you envision for your kids – pre-paid education, a house/car down payment, retirement savings, disability needs funding, etc.

Each of these goals has a different strategy, as discussed below. If you have several goals in mind, one important thing to consider is that you do not have to pick one single option and can utilize a combination of planning strategies.

We like to compare saving for your children to an oxygen mask when you are on an airplane. It is important to save for yourself first (Check out the Financial Order of Operations). Your children can always take out loans for school or save for themselves, but you cannot take out loans to fund your retirement later on. Just remember, you are actually doing them a favor this way because you will not end up living in their basement one day.

Education

There are a few tax-advantaged ways to save for your child’s education. The most popular option today is a 529 plan, which allows tax-deferred savings to be invested and used tax-free toward qualified education expenses (i.e., K-12 tuition, college tuition, room & board, books, laptops, etc.). Some states even allow a state income tax deduction for contributions to their 529 plan. Anyone can open a 529 for a beneficiary, including family friends or grandparents. For parents wanting to save for a child before they arrive, they can even open an account naming themselves as beneficiary and then update that to name their child later. If a 529 is not needed (received scholarship, did not attend college, etc.), the account beneficiary can be renamed to a qualified beneficiary. When picking where to establish a 529 plan, it is important to consider your home state’s tax advantages and the investment options (and their costs) available within the plan.

There are a few downsides to saving to a 529 plan. Tax-free withdrawals are subject to qualified withdrawal rules, which do not include travel expenses, extracurricular activities, or health insurance. Also, for those who are taking advantage of the American Opportunity Credit, you cannot “double dip” to take the tax deduction for expenses paid from a 529. Finally, if you have unused 529 funds (received scholarship, did not attend college, etc.), and you need to withdraw the savings, the earnings portion of your non-qualified withdrawal would be taxed as income, along with a potential 10% penalty (depending on your situation).

Because of the limitations of the 529 plan, some parents find that they prefer to save for college within a brokerage account, whether it be their own or a custodial account. While brokerage assets are not tax-advantaged, they are accessible at any time, and are not penalized if not used for qualified education. The downside to using brokerage assets as a savings vehicle for education is that when it comes time to file a FAFSA and qualify for financial aid, a higher proportion of the assets are included as available for education spending.

Video: The Best Ways to Save and Pay For College

Personal Goals

For more personal goals (future cars, weddings, home down payments, etc.), you may want to consider a custodial account. Custodial accounts, such as UTMAs and UGMAs, allow you to act as custodian of a brokerage account/after-tax assets for a minor child. The difference between UTMAs and UGMAs lies in what investments are available – UGMAs can hold traditional investments (cash, stocks, bonds, etc.), and UTMAs can hold traditional investments, along with real estate. Both accounts are easily accessible to investors and provide a lot of investment flexibility because there are no qualifying rules for contributions or withdrawals like there are on other accounts. Accounts can be opened at banks (similar to a savings account), but brokerage institutions, such as Schwab, Fidelity, or Vanguard, may allow you to grow savings for longer-term goals.

There are a couple things to think about when investing a custodial account. First, the account legally becomes the child’s asset once they hit the “age of majority”, usually 18 or 21 (state-specific law). Second, if income is high within the account, it could be subject to Kiddie Taxes, which are higher than standard tax rates.

Retirement

It is no secret that The Money Guy team LOVES Roth assets, so we love the use of Custodial Roth IRAs when possible. Contributions are taxed before they are invested, but continue to grow tax-free until retirement. Having the opportunity to take advantage of so much tax-free, compounding growth can be a game-changer for your children. If you think 88x over is impressive, check out this resource that shows the power of compounding growth for kids. One strategy Brian likes to use to incentivize saving is a dollar-for-dollar match with his daughter. For every dollar his daughter saves, Brian also invests a dollar (up to the eligibility limit).

To qualify for Custodial Roth IRA contributions, children must have taxable, earned income. For example, an earned paycheck from working as a lifeguard would count, but non-taxed cash earned from chores would not.

Keep in mind that Roth IRAs are intended for long-term saving and investing. If you are saving for a specific need pre-retirement, you may want to revisit your options to ensure you will have full access to your savings.

Disability Savings

If your family needs require saving for a child’s disability, you may want to investigate an ABLE account. ABLE accounts are intended for the Maintenance, Health, Education & Support of those with disabilities. If eligible, an individual can have one account (tied to their SSN) opened through a state. Contributions are limited to $15,000 annually from outside sources, but can grow tax-free if used for their intended purpose. A beneficiary with earned income can save their earned income to the account, as well.

If someone eligible for the ABLE was the beneficiary of a 529 account (intended for education expenses), and that account is no longer advantageous, 529 assets can be rolled into the ABLE. Also, ABLE accounts do not disqualify beneficiaries from governmental programs such as Medicaid and SSI. To qualify, a person must be diagnosed with a disability before age 26.

Check out Brian & Bo’s thoughts!

Video: How to Be Young Money Millionaires! (By Age)

Video: What are the Best Ways to Save Money for Kids?

You may have heard us use the analogy: paying for your children’s education is like putting on an oxygen mask on an airplane; make sure yours is secured first!

Your children have decades of compounding growth ahead of them, and will likely have extra capacity to pay that debt off later down the road. That’s not to mention scholarships and other financial aid they can receive. Make sure your financial future is on solid footing before worrying about your children. After all, your kids do not want to be your retirement plan.

We like to use the College Boards National Averages to get a figure on long-term education planning. Ultimately, a good funding goal to have is covering 50-75% of education costs due to the likelihood of additional resources from financial aid, scholarships, and student loans if needed.

You may want to analyze expected future costs as a whole and see what annual funding is adequate. As a reminder, savings for education expenses would not be included in your overall savings rate for retirement and is considered Step 8 (pre-payment of future expenses) in the Financial Order of Operations (FOO).

In this highlight, Brian and Bo give advice on how college students should prioritize what they do with their money.

Check out our Wealth Multiplier to help build your army of dollar bills.