Education plays a major role in determining an individual’s long-term wealth and financial security. Those with higher levels of education tend to earn substantially more over their lifetime and accumulate greater assets compared to those with less education. Understanding how furthering your education, whether through traditional or online methods, can positively impact your finances is key to setting yourself up for financial success.
Higher Earnings Over a Lifetime
One of the most significant ways education impacts wealth is through increased lifetime earnings. Research shows that the more education you obtain, the higher your earnings potential becomes. On average, those with advanced degrees like master’s, doctorates and professional degrees earn significantly more over their careers compared to those with just a high school diploma. The increased earnings at each level of education compounds over time, leading to greater ability to accumulate assets and build wealth.
Furthering your education, even just to the next level, can make a big difference in earning potential. For example, workers with some college education tend to earn more than those with just a high school diploma. Meanwhile, those with associate’s degrees on average earn more than those with some college but no degree. The wage gap continues to widen further as education levels rise.
Increased Retirement Savings and Investment
Higher lifetime earnings allow individuals with more education to save and invest more for retirement. Data shows that those with bachelor’s degrees or higher are significantly more likely to participate in employer-sponsored retirement plans compared to those without degrees. Higher savings early on and over time gives those with more education a significant advantage in building their retirement nest egg.
Educational attainment also impacts the amount individuals accumulate in retirement accounts. Those with advanced degrees typically have higher retirement savings balances compared to those with just a high school diploma. This is due to increased earnings and greater ability to save for retirement and accumulate investment assets.
Homeownership and Real Estate Investment
Owning real estate like a primary residence or investment properties can be a major component of building wealth. However, education makes a big difference in rates of homeownership. Research shows that college graduates have significantly higher homeownership rates compared to those with only high school educations. Further, college graduates are more likely to own multiple properties for investment purposes. With higher incomes, those with more education are better positioned to purchase real estate and benefit from rising home values over time.
Lower Unemployment
Obtaining additional education reduces your risk of unemployment. Data shows that those with bachelor’s degrees or higher have lower unemployment rates compared to high school graduates with no college. Education provides more job security throughout your career, ensuring steadier income and ability to build long-term wealth. Even when unemployment rises, those with more education still fare better in terms of job security. Avoiding unemployment means fewer gaps in earnings and savings potential.
Pursuing Online Degrees
For many looking to further their education to improve financial outcomes, online degrees at institutions like Webster University offer a flexible option. Online bachelor’s and master’s degree programs allow working adults to advance their education and earnings potential while still working full-time. This helps avoid lost income or tapping savings to pay tuition. Fields like business, healthcare, IT, and data analytics often offer online degree programs that lead to higher-paying roles. Pursuing an affordable online degree can be a strategic move to increase earnings in the long run.
If long-term financial security is your goal, investing in furthering your education can pay major dividends over your working life.
