daughter graduated college this year, and she is in for a major league
buzzkill. So are your college graduates.
though the national unemployment rate in April hit 3.6% and is possibly the
strongest job market we have every experienced, happiness is ultimately about
expectations met or unmet. In a recent survey of college students pursuing a
bachelor's degree by Real Estate Witch in Mar, college students expect earn a
whopping $103,880 in their first job and that's where reality meets the
those kinds of expectations, many parents and students are questioning whether
the cost of college is worth it. Are we setting our kids up to fail?
though employers plan to hire around 31% more new college degree holders from
this year's graduating class than they hired from the Class of 2021, the
average salary in reality is just north of $50,000. With this average it may
not be indicative of where your child will fall from an income perspective even
if they do land a job over the next couple of months.
need to first consider what major their child took in college when it relates
to their starting salary. According to the National Association of Colleges and
Employers (NACE), computer science majors are projected to be the highest paid
group on the pay scale at $75,900 followed closely by engineers at $73,922. The
average salaries for communications, humanities, and education majors are
projected to be under the national average for starting salaries. This means
it's important you educate your child about where starting salaries may truly
be relative to their major.
also depends on the type of business your child goes to work for when they
graduate. Salaries for workers of small businesses are generally 10% to 20%
less than multinational corporations. It is important to educate your child on
something called the Total Economic Package (TEP). This means, not only
considering salary, but also inquiring about bonus potential, stock options,
401(k) matches, and health benefits to determine the real overall compensation
package they are getting. Sometimes, students let the salary tail wag the dog
because they don't inquire about the total economic package.
the study by Real Witch, 48% of the students graduating this year did not think
the cost of the college education was worth it, and 33% of students will
graduate with $50,000 or more of student debt. With companies like Verizon
moving minimum wage to $20 an hour ($41,600 annualized salary) and many
vocational professions offering the opportunity for a six-figure income, the
question facing many parents will be whether we are failing our children
goading them into thinking that a college degree guarantees the path to six
figure income. The Real Witch study showed that these students believe 10 years
into their career that the average salary would be $200,000, however many
Americans in their 40's, 50's, and 60's never even reach the cliff of making
daughter chose a major in Marketing with a minor in Psychology. She's ready to
hit the workforce and start her career. You never want to be a buzzkill for
your child but setting proper expectations will allow your child to be happier,
smarter, and potentially more successful in their career.
Congratulations to the graduating class of