14:35
college majors that DO and DON’T make money
Gohar Khan
Overview
This video explores college majors based on their earning potential, categorizing them into those that generally lead to higher incomes and those that typically do not. It highlights that while STEM fields like engineering and computer science often offer high starting salaries, they can be academically demanding. Conversely, fields like fine arts and humanities, while potentially more fulfilling, may require strategic career planning to achieve financial success. The video emphasizes that passion, transferable skills, and career choices significantly influence individual earning outcomes, regardless of the major.
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Chapters
- Engineering majors typically command high starting salaries, with median earnings around $74,000, though specific fields like nuclear engineering pay more than biomedical.
- The demanding nature of engineering, requiring strong math and science skills and significant time commitment, is a trade-off for its financial rewards.
- Computer Science also offers high average starting salaries (around $77,000), with specializations like AI showing future promise.
- Success in Computer Science requires mathematical aptitude, practical application through side projects, and good personal hygiene to overcome stereotypes.
- The current job market for CS can be challenging, with potential future impacts from AI, but the demand for skilled professionals remains strong.
Understanding the earning potential and demands of STEM fields like engineering and computer science is crucial for students seeking financially rewarding careers, provided they can meet the rigorous academic and practical requirements.
The video mentions the meme of University of Waterloo engineering students showing disturbing transformations from year 1 to year 5, illustrating the intense academic pressure.
- Fine arts majors (music, visual arts, performing arts) have lower average starting salaries (around $49,000) compared to the overall bachelor's degree average ($55,000).
- The financial success of fine arts graduates depends heavily on how they apply their skills, such as using visual arts for marketing rather than solely pursuing artistic endeavors.
- Education majors face a particularly challenging financial outlook, with studies indicating a negative lifetime Return on Investment (ROI) of over 500%.
- While starting salaries for primary school teachers are low (around $41,000), education degrees can lead to better earnings in roles like technical writing or HR.
- The video stresses that passion and strategic career application are more significant than the major itself in determining income.
This section highlights that majors traditionally pursued for passion, like fine arts and education, may not offer immediate high financial returns, necessitating creative career planning and skill application.
A music major might struggle financially if they only pursue their dream of being in a rock band without other income streams, whereas using visual arts skills in marketing could lead to better financial stability.
- Healthcare fields offer strong earning potential, with nursing starting around $65,000 and physician assistants earning significantly more, potentially reaching six figures mid-career.
- Pursuing healthcare careers, especially medicine, requires extensive training, long hours, and additional qualifications beyond a bachelor's degree.
- Humanities majors (English, philosophy, history) often have lower starting salaries (e.g., history at $49,000), but possess valuable transferable skills.
- Skills developed in humanities, such as strong writing, critical thinking, and research, can be applied to high-paying fields like marketing, business analytics, law, and tech.
- The video suggests that humanities majors can have versatile career paths, sometimes even surpassing STEM fields if they proactively identify and leverage their skills.
This chapter illustrates that fields like healthcare offer high pay but demand significant commitment, while humanities, despite lower initial salaries, provide adaptable skills applicable to a wide range of lucrative careers.
An English major's strong communication skills can be applied to marketing or social media management, while a philosophy major's critical thinking abilities are valuable in tech, law, or finance.
- Finance majors have a very high ROI (1,842%) with average starting salaries around $85,000, leading to potential lifetime earnings of $9.7 million.
- Careers in finance, such as investment banking, often involve extremely long work weeks (80-100 hours) but offer rapid career progression and high compensation.
- Unlike some STEM fields, many finance roles require strong analytical and modeling skills rather than advanced mathematical backgrounds.
- Social science majors (psychology, sociology, communications) typically have moderate starting salaries ($50-60K) with a bachelor's degree.
- Advanced degrees in social sciences (e.g., I/O psychology, clinical psychology) significantly increase earning potential, with clinical psychologists earning around $96K annually.
This section contrasts the high-reward, high-effort nature of finance with the potential for growth in social sciences, particularly with further education, emphasizing the importance of specialized skills and career paths.
Investment bankers can progress from earning $85-100K as analysts to potentially seven figures as directors within a decade, despite demanding 80-hour work weeks.
- Information Technology (IT) offers high demand and competitive salaries, often with a lower barrier to entry than other tech fields.
- IT roles like cloud specialists, system administrators, and network engineers can lead to six-figure salaries, sometimes without requiring a bachelor's degree.
- Cloud computing is a particularly high-demand area within IT, driven by companies migrating to cloud infrastructure.
- Theology majors typically have lower starting salaries (around $42,000) and are often motivated by a sense of calling rather than financial gain.
- Theology graduates can find financially stable roles in educational institutions, clinics, or nonprofits, balancing their passion with practical application.
This chapter explores practical, accessible fields like IT that offer good financial prospects with flexible educational pathways, alongside fields like theology where personal calling often outweighs monetary reward.
Cloud computing specialists are highly sought after because companies are increasingly moving their systems to cloud platforms like AWS, allowing professionals with relevant skills to earn six-figure salaries.
Key takeaways
- High-paying majors like engineering and computer science require significant academic rigor and a strong aptitude for math and science.
- Majors often pursued for passion, such as fine arts and humanities, can lead to financial success if graduates strategically apply their transferable skills to relevant industries.
- The education field presents significant financial challenges, with low starting salaries and a negative lifetime ROI, though career transitions can improve earnings.
- Healthcare offers substantial earning potential but demands extensive training, long hours, and a deep commitment to patient care.
- Finance is a high-reward field with rapid career progression and high salaries, but it comes with exceptionally demanding work hours.
- Information Technology (IT) provides accessible pathways to well-paying jobs, often requiring less formal education than other high-demand tech fields.
- Ultimately, career choices, skill application, and personal initiative play a more significant role in financial success than the specific major alone.
Key terms
STEM (Science, Technology, Engineering, Mathematics)HumanitiesFine ArtsComputer ScienceEngineeringInformation Technology (IT)HealthcareFinanceReturn on Investment (ROI)Transferable Skills
Test your understanding
- How do the academic demands of engineering compare to the financial rewards it offers?
- What strategies can fine arts and humanities majors employ to improve their earning potential?
- Why does the education major have a notably negative lifetime ROI, and what alternative career paths exist for graduates?
- What are the primary trade-offs between pursuing a career in healthcare versus a field like finance?
- How can skills developed in social science majors be leveraged for higher-paying careers, especially in the context of AI?