The College Wealth Myth: A Degree Won’t Make You Rich

Go to college, get a degree, and you’ll be set for life.” That’s the promise generations have heard. It’s baked into how society talks about success and financial security.

But in today’s economy, that promise doesn’t always hold up.

According to the Federal Reserve’s 2023 Report on the Economic Well-Being of U.S. Households, 68% of adults with at least a bachelor’s degree believed the financial benefits of their education outweighed the costs. Yet that number drops significantly for those with lower levels of education—and just 31% of those who attended for-profit institutions felt their education was worth it. Factors like student debt, school type, and age all shape how people view their degree’s value.

So, does higher education guarantee wealth?
Not anymore—and for many, it never did.

This article breaks down the real relationship between college and wealth, what factors actually drive long-term financial success, and how to make smarter decisions about higher education

Key Takeaways

A college degree can open doors, but it no longer guarantees wealth.
Student debt, degree choice, and income potential all affect ROI.
Many trades and alternative paths now offer competitive earnings without the debt.
Financial literacy and savings habits often matter more than credentials.

The Cost of a Degree: More Than Just Tuition

Since the 1980s, college tuition has increased at more than double the rate of inflation. According to the U.S. Inflation Calculator, tuition and fees have surged by approximately 1,538% from 1977 to 2025, while general inflation over the same period was around 430%.

In today’s dollars, the average cost of a four-year degree at a public university now exceeds $100,000. At private universities, it can surpass $200,000—and that’s before adding interest from student loans.

This steep rise in cost challenges the long-held belief that a college degree guarantees financial prosperity.

A Degree Isn’t a Guaranteed Paycheck

While it’s true that college graduates generally earn more over their lifetimes, that average hides a lot of variability.

Not all degrees are equal:

A computer science graduate might start at $70,000+.
An art history graduate might struggle to find a job paying $40,000.

And not all careers require a degree:

Electricians, plumbers, and coders can make six figures with the right experience and certifications.

What Really Builds Wealth

Wealth is about more than income. It’s about how money is managed.

Factors that play a bigger role than a diploma:

Living below your means
Investing early and consistently
Avoiding high-interest debt
Understanding taxes and retirement accounts

These habits, practiced over time, matter more than where someone went to school—or whether they went at all.

When College Still Makes Sense

Despite the challenges, college isn’t obsolete. It’s just no longer a guaranteed wealth generator.

It may still be worth it if:

The degree leads to a high-ROI field (e.g., STEM, healthcare, finance)
Scholarships or financial aid reduce costs
The alternative is no post-secondary training or plan

But going into six figures of debt for a low-paying job market? That’s a tough sell.

College Degrees and Financial Stability — FAQs

Why is the assumption that a degree ensures financial stability less reliable today?

Factors such as longer lifespans, rising healthcare costs, and less stable career paths have weakened the guarantee of financial security tied to degrees.

When might college still deliver a strong financial return?

College may be beneficial when the degree leads to high-return fields, when scholarships or aid reduce costs, or when alternatives offer limited prospects.

How do lifetime earnings for graduates compare to non-graduates?

While graduates tend to earn more over a lifetime on average, earnings vary significantly depending on the chosen degree and career field.

How does student debt influence the payoff of a degree?

Interest on student loans increases the total cost of education, potentially reducing the financial benefit even in high-earning career paths.

What broader financial challenges are linked to high student loan balances?

Higher loan burdens may delay homeownership, reduce retirement contributions, and slow progress toward other financial milestones.

How does inflation affect the affordability of higher education?

Tuition growth has far outpaced general inflation since the 1980s, making education relatively more expensive compared to prior generations.

What alternatives to four-year degrees now provide competitive earnings?

Careers in skilled trades, technical certifications, and technology-based training can produce competitive incomes at lower upfront costs than university degrees.

How do age differences affect perceptions of college value?

Older graduates often report stronger perceived returns from their education, while younger graduates may feel constrained by debt or slow income growth.

How does financial aid improve the return on investment of higher education?

Scholarships and aid lower the effective cost of a degree, increasing the likelihood that financial benefits exceed long-term expenses.

Why is financial literacy emphasized alongside education for wealth-building?

Skills in budgeting, investing, and debt management are often more predictive of long-term financial outcomes than degree credentials alone.