A college degree offers a unique investment proposition: You determine the rate of return. Depending on which major you choose, you could find yourself earning a comfortable living or a lavish lifestyle. Before you commit to an undergraduate major, consider the likely return on your investment.
Math skills add up to higher earnings
Emphasize numbers in your course curriculum, and you can expect to see higher numbers in your bank account. That's the consensus of several studies, including surveys by the National Association of Colleges and Employers (NACE) and PayScale.com. "Math is at the crux of who gets paid," states Ed Koc, director of research at NACE. "If you have those skills, you are an extremely valuable asset." According to NACE, all 15 college majors with the highest earnings potential rely on math skills.
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For best results, head for a college major that combines mathematics problem sets with hands-on career training. Applied math wins on the job market, explains PayScale's director of quantitative analysis Al Lee: "The kinds of majors where you learn to integrate mathematics and science with the everyday world have a tremendous benefit in terms of earnings potential." High tech isn't the only road to riches -- you can find applied math careers in business, finance, design and other industries.
1. Engineering
Engineering majors account for twelve of NACE's top fifteen highest-paid majors. Even the economic slowdown hasn't dampened prospects for engineers. "It's a tech-driven world, and demand for engineers is only going to grow," explains career consultant Farnoosh Torabi. According to the Department of Labor, engineering degrees command higher starting salaries than any other bachelor's degree. The energy sector is keeping engineering at the head of the earnings race. Petroleum engineers enjoy an average starting offer of $83,121; their mean annual income reached $119,140 in 2008.
The bachelor's degree in engineering offers both theory and practice, with courses in math and science and studio design. With a bachelor's degree in engineering, you can head to a career in research and development in your chosen specialty -- mechanics, chemical processes, agriculture and others. The highest-paying engineering specialties include aerospace, chemical, computer and mechanical engineering.
2. Computer science
"Everything today has a computer in it," PayScale's Lee says, explaining the high return on investment of a bachelor's degree in computer science. A computer science degree incorporates math and science fundamentals as well as training in computer programming and hardware design.
For maximum return on your investment, apply your computer science bachelor's degree as a research scientist. Research scientists advance the fields of information technology and high tech product design by developing computer hardware or software innovations. Computer scientists brought home a mean annual wage of $100,900 in 2008.
3. Economics
Trust economics majors to get their educational investment strategy right. Economics majors have the fifth highest mid-career median salary and the highest salary at the 90th percentile mark, making the bachelor's degree well worth the investment. Economics majors who go on to a master of business administration (M.B.A.) degree fare even better, achieving a median salary increase of 39 percent over their pre-graduate degree salaries.
An economics degree is a versatile qualification for a range of business and finance careers. Many graduates go on to jobs as management consultants, where they analyze business problems, conduct studies and develop recommendations for improving operations. Management consultants earned a mean annual wage of $82,920 in 2008.
Supply and demand
Math and technical skills aren't your only route to a high salary. Other high-performing degrees reflect market demand. NACE research director Ed Koc offers a simple explanation for salary differences among college graduates: "It's a supply and demand issue." Look for a field that's thriving even in the midst of a down economy -- health care, for example -- and you're likely to secure a robust return on your educational investment.
4. Accounting
Accounting is among the financial-sector careers to benefit from the economic downturn. Demand for public and private auditors is on the rise, as new regulations and tougher enforcement of existing regulations take hold. With demand driving salaries higher, it's no surprise that accounting ranks among the most lucrative undergraduate majors.
A bachelor's degree in accounting offers a mix of business and quantitative analysis training to kick off your career as an accountant. Accountants may audit or manage corporate finances, offering financial advice or ensuring compliance with regulatory requirements. Accountants earned a mean annual salary of $65,840 in 2008.
5. Nursing
Number-crunchers aren't the only ones to command a top-ranked salary with a bachelor's degree. Health care professionals are enjoying rising salaries as a result of historic demand. Nursing, for example, is expected to add 587,000 new jobs in the U.S. between 2006 and 2016. As a result, registered nurses are wielding new earning power. The 2008 mean salary puts them on par with accountants, at $65,130. With experience and specialized training, nurses can earn six figures.
A bachelor of science degree in nursing (B.S.N.) offers a route into the most lucrative nursing jobs. Unlike an associate degree or registered nursing diploma, bachelor's degree holders qualify for higher-paid administrative positions. They may also continue on to a master's degree in nursing and qualify for an advanced practice nursing career.
Your college major matters when it comes to securing a return on your investment. "A student's choice of major has a huge impact mid-career," concludes PayScale's research guru Al Lee. To get the most out of each tuition dollar, choose a major that prepares you for today's highest-demand and highest-paying careers.
