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Explanation of Income Related to Education - Personal Finances: Strategies in Handling Your Money. Also refer to quit, drop-out, high school, training, apprenticeship, college, Bachelor's, Master's, Doctorate, degree, wages, income, Ron Kurtus, School for Champions. Copyright © Restrictions
Income Related to Education
by Ron Kurtus (16 May 2007)
You need money to buy the things you want. Unfortunately, a large number of students in the United States quit high school before graduation, many because they want to get a job to start making money. The only problem is that in most cases, the more schooling you get, the higher your yearly income. The exception to this concerns trades, where you need to become highly skilled, usually through an apprentice program or on-the-job training. In either situation, those who are educated and trained will get a much greater income than those who do not bother learning a skill.
Questions you may have include:
- What does a high school dropout earn per hour?
- What does a graduate with training earn?
- How much can college graduates make?
This lesson will answer those questions. There is a mini-quiz near the end of the lesson.
Dropouts
Some students are so anxious to get a job that they drop out of high school by the time they are 16-years old. There are others who simply don't like school and would rather "hang out" on the streets. When they get older, they are usually forced to get a job of some sort.
The average wage for people not finishing high school over their lifetime is about $11/hour in the United States. Recent dropouts usually get much less, over around $5 or $6/hour. Often these jobs are unpleasant, menial or boring.
High school and training
Those with a high school diploma, but with no other training, average around $15/hour. But if the person takes some college or trade school classes, or gets other training, the rate goes up to $18/hour.
Students that receive an Associate of Arts (AA) degree or who get on an apprenticeship program will earn from $19/hour to $26/hour.
College degree
College graduates make the most money. The average wage for a person with a Bachelor's degree is $26/hour, and it is $31/hour for a Master's degree. Those with a Doctorate degree can expect around $49/hour.
These rates vary with location. States on the East and West coasts seem to pay more, but the cost of living is higher. There is also a big difference in what you get your degree in. Jobs in high technology jobs and in the medical professions usually pay more than jobs in other fields.
Summary
Since the more education and training you get, the higher your income, it is worthwhile to go to school. High school dropouts average only $11/hour, graduates with training get $19/hour, and college graduates with advanced degrees get $49/hour and more. Those who are educated and trained will get a much greater income than those who do not bother learning a skill.
Always do your best
Resources
The following resources provide information on this subject:
Websites
US Census Bureau, 2002 statistics on education and income
Books
Mini-quiz to check your understanding
If you got all three correct, you are on your way to becoming a champion in Personal Finances. If you had problems, you had better look over the material again.
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Income Related to Education