Importance of Getting an Education

Ever wonder if earning a degree is really worth it? Well, it is – in a big, big way, because it means more money in your pocket.

Figure 1: Median Earnings by Level of Education, 2006

Conclusion: Average earnings are higher for people with higher levels of education.

Main Points:

1. Adults with a Bachelor's Degree earned 62 percent more than high school graduates.
2. Adults with an Associate Degree earned 22 percent more than high school graduates.

Note: Includes full-time year-round workers age 25 and older.

Source: U.S. Census Bureau, 2006, PINC-03;

Figure 2: Expected Lifetime Earnings Relative to High School Graduates, by Education Level

Conclusion: Lifetime earnings are higher for people with higher levels of education.

Main Points:

1. The typical Bachelor's Degree recipient can expect to earn about 73 percent more over a 40-year working life than the typical high school graduate earns over the same time period.
2. Average lifetime earnings for individuals with associate degrees are almost 25 percent higher than average lifetime earnings for high school graduates.

Notes: Based on sum of mean annual 2003 earnings from ages 25 to 64. Future earnings are discounted using a 5 percent annual rate.

Source: Day and Newburger 2002;