Answer (from Federal Reserve Bank of San Francisco research): $800,000

From their report:

Earning a four-year college degree remains a worthwhile investment for the average student. Data from U.S. workers show that the benefits of college in terms of higher earnings far outweigh the costs of a degree, measured as tuition plus wages lost while attending school. The average college graduate paying annual tuition of about $20,000 can recoup the costs of schooling by age 40. After that, the difference between earnings continues such that the average college graduate earns over $800,000 more than the average high school graduate by retirement age.

Discussion questions:

1. Why do you think there is such a difference in earnings between high school and college graduates?
2. Do you think a college degree guarantees that you will earn more than a high school graduate? Why or why not?
3. Do you think this amount varies based on a graduate’s college major?
4. What other factors can impact this earnings gap?
5. Do you think this earnings difference between high school and college graduates will change in the future?

Here's the ready-to-go slides for this Question of the Day that you can use in your classroom.

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Want to extend this question into a deeper conversation about how earnings differ by college major? Check out this resource from our Interactive Library, Earnings by College Major.

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About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.

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