One of the biggest perks of a college degree is that it gives you the opportunity to get a great salary. Notice I said opportunity, there are never guarantees.
The average starting salary in 2009 for all graduates was $49,307, a little below the average of $49,693 in 2008. The slight drop is understandable – as companies have been cutting benefits and instituting pay freezes.
According to the National Association of Colleges and Employers (NACE), here are the Bachelor degrees that garnered the highest starting salary offers.
Top 15 Degrees By Starting Salary
This past Thursday, I made a post detailing the top 10 college degrees by demand. You probably wouldn’t be surprised to find out that there is a good bit of overlap. For obvious reasons, degrees that are high in demand also often times receive high compensation. This is particularly true for the more technical degrees.
15. Civil Engineering – $52,048
14. Information Sciences & Systems – $52,089
13. Construction Science/Management – $53,199
12. Aerospace/Aeronautical/ Astronautical Engineering – $56,311
11. Engineering Technology – $56,447
10. Systems Engineering – $57,438
9. Industrial/Manufacturing Engineering – $58,358
8. Mechanical Engineering – $58,766
7. Electrical/Electronics & Communications Engineering – $60,125
6. Computer Science – $61,407
5. Computer Engineering – $61,738
4. Mining & Mineral Engineering (incl. Geological) – $64,404
3. Chemical Engineering – $64,902
2. Petroleum Engineering – $83,121
1. Pharmacy – $111,782
(Source)
Key Takeaways
I wouldn’t pick a career based solely on the average starting salary (example: If the supply of graduates is far greater than the demand, or if it is a job that would not satisfy me). But, here are my takeaways after looking at that list:
- Getting a technical degree pays off by way of an increased starting salary. 11 of the top 15 highest paid majors are engineering related. 1 is medical. 1 is computer science. 1 is information science. And 1 is construction science. All technical.
- This is evident of a growing trend in America away from the sciences. As more students study arts and business, less students are studying the sciences. Our economy still needs these people and is willing to pay more to create an incentive.
- By looking at the overlap between the two lists (top 10 by demand and top 10 by salary), you can choose a major that has a high starting salary AND is in demand. The majors that overlap: Mechanical Engineering, Electrical Engineering, Computer Science, Information Science & Systems, and Computer Engineering.
- The starting salaries do not mesh up exactly between the two lists even though the source is the same. I am guessing the analyzer (CNBC) did different things with the data for each list. They may have been more inclusive of related majors in one list, and more exclusive in the other, which would skew the salary data. Not really sure, but the important thing is that we get an idea of what’s going on. For all intents and purposes, the exact numbers shouldn’t make that big of a difference if the variance is only a few thousand dollars.
- Healthcare is way out in front, and will most likely only get better as the population ages. (Leave the healthcare debate out of this, thanks)
Pay isn’t everything, but it helps to know what you’re getting yourself into. If you are expecting a $60,000/yr salary out of college, $20,000 in student loans isn’t that bad of an investment. However, if you are expecting a $30,000/yr salary out of college, that $20,000 is a lot more burdensome (but still manageable).
In the end, just don’t let your student loans drive your career. And make sure you are happy with what you are doing.
I'm MLR. After graduating from college debt free, I decided to write a blog encouraging people to adapt responsible and sensible personal finance rules.
October 27th, 2009 at 12:15 pm |
It looks like I should have majored in something else. Not a surprise more technical jobs pay higher though.
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MyLifeROI Reply:
October 27th, 2009 at 1:05 pm |
@Craig,
I agree that it’s not a surprise. However, the surprise to me is that America hates science and math so much that the jobs are in such demand.
It’s ok, people from other countries are loving it!
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October 27th, 2009 at 11:17 pm |
I’m going to school for mechanical and just started a part time job that will eventually lead to an intern right out of college. But it only pays $41,000 and the average mechanical is $58,000! But I would have great (I mean GREAT) job security. Would it be worth it to stick it out?
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MyLifeROI Reply:
October 29th, 2009 at 2:48 am |
@Mike,
I can not tell you definitively what to do, but I CAN say that you would have great job security at other companies that would pay you what you’re worth, too.
The fact that mech E’s are in high demand pretty much guarantees you that!
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October 28th, 2009 at 7:12 pm |
Makes sense to me. I am not at all surprised at the number of engineering jobs on the list. A lot of my fellow MBA classmates had undergraduate engineering degrees and they never had a problem getting hired at a decent starting salary. Of course, most of those engineers cap out at a relatively low level compared to what a business owner or entrepreneur can make. :)
Credit Card Chaser´s last blog ..House Votes to Move CARD Regulation Start Date up to Dec 1st
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MyLifeROI Reply:
October 29th, 2009 at 2:53 am |
@Credit Card Chaser,
I think that would be interesting data to look at in regards to where people cap off. Perhaps I can collect the data for average salaries after 10 years across different fields.
If you know where that info is readily available, let me know!
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October 29th, 2009 at 11:51 am |
I wrote a blog two years ago comparing the salary statics for top paying professions in 2007 with the average take home earnings of exotic dancers.
I learned the hard way: the $130k I spent on my Bachelor and Masters degrees had a much lower ROI than my saline BA.
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MyLifeROI Reply:
November 10th, 2009 at 9:00 pm |
@StripandGrowRich,
Sounds like a pretty interesting blog post!
There are a lot of professions where people could earn more than what there college degree will get them paid. As you mentioned, exotic dancers. I would imagine that plumbers and electricians are in the same boat (but maybe not as much as the dancers! ;)
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November 9th, 2009 at 11:52 am |
Interesting stuff to know, as always. Does make me regret not sticking with the pharmacy program at my college, though.
Roger´s last blog ..Net Worth Update: Back In Action!
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MyLifeROI Reply:
November 10th, 2009 at 9:01 pm |
@Roger,
Oh, wow! You would have been set Roger!
Everything happens for a reason, though. You will be fine.. I’m sure!
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Roger Reply:
November 13th, 2009 at 1:56 am |
@MyLifeROI,
Yes, I have often wondered how things would have been different had I stuck with pharmacy, but I’m sure I’d feel like that sometimes even I stayed with pharmacy. The grass is always greener on the other side of the fence, or something similar. But, as you say, everything has a reason, and soon (I hope) things will pick up.
Roger´s last blog ..Small Business 101: Small Business Administration
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November 12th, 2009 at 9:07 am |
Understanding the starting salary compared to your student loan debt is one of the most overlooked things students and their parents need to focus on.
My sister has over $40,000 in student loan debt for a masters degree in social work which currently pays her around 45k.
You must know what you are paying for when it comes to college.
Emergency Cash´s last blog ..No Teletrack Payday Loans
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November 21st, 2009 at 6:29 pm |
Clearly, selecting a career in science has quite a few benefits, but I think that putting too much emphasis on starting salary is short-sited. I’ve seen too many interns and younger employees start their careers without taking stock of all of the other factors surrounding the position. Some come to find that they made the right choice, while others find an science/engineering career isn’t for them. I’d encourage each person to use starting salary as only a small component of their decision making process.
Kelli: Electro Mechanical Integration´s last blog ..Main Page
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