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.

The financial problems faced by millennials are well-documented. We were graduating high school and college during the Great Recession. We used student loans to pay for our college degrees that often weren’t worth the paper they were printed on. We had (and many continue to have) trouble affording homes. We are waiting longer and longer to have kids or are not having them at all (to be fair, the decision to delay having children or to not have children isn’t always related to money). We own less than half of the wealth that our parents did when they were our age.

All that being said, I wouldn’t want to trade places with my parents or any previous generation. My parents and grandparents had to go to a friend of a friend to invest, and they usually sold them insurance or annuities instead of helping them invest in the stock market. It is easier to access good financial information than ever before. Sure, there’s a lot of misinformation out there, but if you know where to look, you can teach yourself how to invest, the best way to pay off debt or buy a car or house, and so much more.

Gen Z’s four-letter problem

Gen Z shares many of the same financial problems millennials face. Homes are out of reach for many, college is expensive and often necessitates student loans, and many are facing tough job markets when graduating college (tech especially). There is one notable difference, though, and that is debt.

Gen Z carries a higher average debt load than any other generation. The average Gen Z adult has nearly $100,000 in debt (including credit cards, student loans, personal loans, medical debt, mortgages, and auto loans), but this average is skewed by a small but notable percent of this generation that carries a significant amount of debt. 32% of Gen Z adults have no debt at all, and 30% have some debt, but less than $50,000. 13% of the generation has between $50,000 and $100,000 in debt, and 11% has over $100,000 in debt (I’m assuming the percentages here don’t add up to 100% due to non-respondents).

The reason for Gen-Z debt

There’s no doubt that many members of Gen Z with over $100,000 in debt have their mortgage to blame, but the most common debt carried by Gen Z adults was not mortgages, but credit cards (56%), student loans (31%), personal loans (23%), medical debt (19%), and finally mortgages (16%) and auto loans (10%). The spending habits of young adults is quite different from older generations and might explain the higher debt load young people carry.

Older households spend more money on housing, household goods and services, and healthcare. Younger households spend more on education, communication, transportation, and leisure. It makes sense that the older you are the more you spend on healthcare, and that younger people spend more on education and communication. The notable difference in spending appears to be a preference by older households to spend money on goods and services and younger households to spend money on transportation and leisure. 

This is something we’ve known for quite a while: young people would rather spend money on experiences than things, and about 60% would rather have those experiences now instead of saving for retirement. Not saving for retirement is definitely bad, but choosing to spend money on experiences rather than stuff is a good thing. Experiential purchases have been shown to make people happier, even when accounting for price differences. Younger people are prioritizing spending that makes them happier, but unfortunately some may be going a little overboard.

How young adults can avoid consumer debt

In some ways, it is easier to control spending on things than it is spending on experiences. With things, your happiness boost often fades quickly and buying stuff doesn’t really provide you with cherished memories. Spending money on experiences is often accompanied by pressure from friends and family to join in on the fun and spend a certain amount of money, whether that’s just a dinner out or an expensive vacation.

It is really difficult to turn down new experiences with friends and family, but setting boundaries around how much you are willing to spend can help avoid those tough conversations entirely. Friends and family are much less likely to pressure you to spend money on something you can’t afford if they know you can’t afford it. It can be really difficult to talk about budgeting and money, but it is far better than the alternative which is living above your means.

Do you have high-interest debt?

That may seem like a silly question. Shouldn’t you already know whether or not you have high-interest debt? In some cases you absolutely know whether or not you have high-interest debt, but in other situations it isn’t as clear-cut. What if you are a college student and just graduated with student loans at 6.8% interest? Or what if you just bought your first home and closed at a 6.75% interest rate?

Before we discuss more nuanced situations, let’s define what counts as high-interest debt for everyone. Any unsecured consumer debt that you do not pay off in full every month counts as high-interest debt. This is commonly a credit card balance, as almost half of all credit card users carry a balance on at least one of their cards. Unsecured consumer debt isn’t just credit cards. Lines of credit at stores, loans to purchase electronics, furniture, and other home goods, personal loans, and more all count as unsecured debt that should be prioritized as high-interest debt.

A few types of debt work a little differently and may or may not count as high-interest debt for you. Student loans are often a necessary evil to obtain a college degree, and whether or not you count them as high-interest debt depends on your age and interest rate of your student loans. In your 20s, student loans with interest rates greater than 6% can be considered high-interest, and in your 30s anything over 5%, in your 40s over 4%, and all student loans should be prioritized after 50.

It’s important to note that the stated interest rate on your student loans may not be your effective interest rate. If you are on a SAVE income-driven repayment plan, any interest in excess of your monthly loan payment is not charged as long as you make the required monthly payment. This means some of the interest you owe may be forgiven each month and thus lower your effective interest rate (and possibly the priority of paying off your student loans).

Auto loans are unique and don’t fit neatly into high-interest debt or low-interest debt. Unlike mortgage debt, which we will get to next, auto loans are on assets that typically depreciate (or go down in value over time). This makes car loans more of a liability, which is why we recommend avoiding taking out a vehicle loan if possible and paying for a car in cash if you have the ability. We recognize reliable transportation is usually a need and not a want, which is why it does make sense to take out a loan to get a reliable car if necessary.

If you are taking out an auto loan, you should put at least 20% down, pay off your car in 3 years or less, and keep the monthly payment (or payments, if you have more than one car loan in your household) to 8% or less of your gross income. If your car loan falls outside of these guidelines, you should consider it a higher priority or high-interest debt (Step 3 of the Financial Order of Operations). We created an interactive tool to help you determine how much car you can buy, which you can use here.

Mortgage debt is another unique type of debt. Unlike every other type of debt we’ve mentioned so far, this debt is on an asset that typically appreciates in value. Not only that, if you itemize on your taxes, you may be able to claim a mortgage interest deduction that could be thought of as lowering your effective mortgage rate. For most individuals and families, mortgage debt does not count as high-interest debt, even at 2024 interest rates. However, you should still make sure you follow our rules for buying a home to ensure you are living within your means and buying a home you can afford.

How do you pay off high-interest debt?

Now that you know exactly what counts as high-interest debt, how do you pay it all off? There are two main schools of thought when it comes to the best way to pay down your high-interest debt. We don’t believe that either is right or wrong, but depending on how you are wired, one may make more sense than the other.

Debt Avalanche vs. Debt Snowball: Which Is Better?

If you are mathematically minded and have the discipline and desire to pay off your debt as quickly as possible, the debt avalanche method may be for you. With the avalanche method, you prioritize debts based on the interest rate without regard to the balance of the debts. This ensures you pay off the most harmful debts first and minimize the amount of interest paid on your debt. This method will save you the most money in the long run if you have the discipline to pay as much as you can towards your high-interest debt.

The debt snowball method may be better if you are more affected by the emotional and mental burden of being in debt and need small “wins” to give you motivation to get out of debt. With the debt snowball method, you pay off the debt with the lowest balance first without regard to the interest rate. This means when you start paying off your high-interest debt you will get the “wins” of eliminating balances, but overall you might pay more interest and be in debt longer than if you had used the debt avalanche method.

No matter what types of high-interest debt you have or what your balances look like, it is possible for you to get rid of all of your most harmful debt and build a brighter and more beautiful tomorrow for you and your family. The steps you must take to get rid of your debt may be as simple as reducing frivolous spending and building more financial discipline. If you have a larger amount of debt, it may be smart to look for different ways to increase your income. It’s normal for high-interest debt to make you feel anxious, financially insecure, and afraid of the future. Instead of focusing on those negative emotions, try to imagine how you will feel once you eliminate high-interest debt for good and never look back – and use that as motivation to work towards paying off high-interest debt.

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.

The sad fact about student loan borrowers is that a large portion never get a degree. Avoid these traps when going to college.

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.

Student loan forgiveness was recently overturned! In this highlight, we discuss how you should consider approaching this situation.

For more information, check out our free resources here.

Beyond the ability to boast about the job prospects of their graduates, colleges don’t necessarily have a financial interest in ensuring graduates become successful after leaving school. No matter whether you choose a major with a poor success rate after graduation or a very high success rate, the college will make the same in tuition and fees.

Graduates of degree programs looking for jobs are able to offer a more unbiased perspective into the actual value of their major. Any rose-tinted glasses have likely worn off by the time graduates are deep into their job search after earning their degree. Which degrees do they end up regretting the most?

Worst College Degrees

A survey of recent graduates seeking a job asked them how many would pick a different major if they could, and the following chart shows the most regretted college majors.

As someone with a degree in one of, sorry, the most-regretted college majors, I feel like my decision to stay in school to complete a financial planning degree (spoiler alert, finance made the list of best college degrees) was absolutely the right decision. Still, I wonder if my college experience would have differed if I knew this statistic before deciding on a major. I chose the field of journalism because I had a strong interest in writing and wanted to develop my skills and eventually make a living writing. I was generally aware of the competitiveness of jobs and lower starting salaries, but it didn’t become a reality for me until I was close to graduating.

The focus in many degree programs, or mine at least, was making students the best possible _______ they can be, whether that blank is doctor, lawyer, journalist, artist, philosopher, or engineer. College is a place where you should be able to explore your interests and find a career path that makes you happy, but an emphasis should also be placed on choosing a degree program that is in demand and pays well (and “pays well” may be defined differently from person-to-person; you need to consider not only starting pay, but long-term career trajectory and the potential for growth). Unfortunately, the high percentage of graduates saying they would choose a different major if they could do it all over again indicates they are not happy with their career opportunities and/or salary potential.

Best College Degrees

The best college degrees, based on the percentage of job seekers that said they would choose the same program again, isn’t too surprising.

Degrees in computer science, engineering, nursing, and finance are among the highest-paying, so it makes sense that graduates with degrees in those fields of study would do it all over again if they had the option.

The reality of what a degree choice really means may not hit students until after graduation, when they begin to rely on their choice of degree to support themselves. It’s easy to overlook a bad decision when your choice of major doesn’t yet have any noticeable financial impacts on your life. If you have yet to choose a major, or decide if you are even going to attend college, make sure you weigh the earning potential and career satisfaction of any potential degrees.

If you graduated with a degree you now regret, making a career change is always possible and doesn’t have to be extremely costly. The table below shows some of the highest-paying jobs that require no college degree; all but two require just a high school diploma (air traffic controllers and radiation therapists must obtain an associate’s degree).

Trade schools or community college costs a fraction of the price of traditional college, and can be an option for both high school graduates or those further into their careers that are looking for a change.

Choosing a degree program can be overwhelming, but knowing what the earning potential and career satisfaction is of potential choices can help you narrow down your options. Begin with the end in mind: before you are even close to choosing a major, have an idea of what’s important to you when it comes to your future career. Even if you’ve graduated with a major you regret, it is never too late to change careers.

Should you bother saving for college if you are unsure your kids will even attend college? In this highlight, Brian and Bo discuss what variables you should consider when saving for college expenses.