What's a Graduate Degree actually worth?

According to the graph below, the average person who holds a master’s degree earns an additional $13,000 per year beyond bachelor's degree holders because of it. Multiply that by 10, 20 or 30 years, and getting your master’s makes a whole lot of sense…and cents.

The Bureau of Labor Statistics corroborates this report with two separate studies. The first concludes that over their lifetime, workers with a master’s degree on average earn $400,000 more than their less-credentialed peers. In 2005, the second BLS study stated that master’s degree holders earn an average yearly salary that is $10,329 higher than bachelor’s degree holders.

However, not all master’s degrees are created equal. U.S. Census Bureau findings show that those with a master’s of arts degree typically yield less income than the average listed above, while MBA’s and master’s of science degree holders earn more. To determine whether it’s a smart financial move for you, decide on your final career goal and then research the following:

Will earning a master’s degree…

• Help me achieve that career goal?
• Help me fulfill the educational requirement for the occupation I want?
• Increase my earnings potential in my current position?
• Make me eligible for promotion at my current employer?
• Increase my credibility to clients and/or staff?

(This is an important question for business owners and consultants)

On the other hand, if you want to take a graduate degree program because you have a very strong interest in gaining additional knowledge on a subject, or if you have a specific educational goal you wish to achieve, then future income is certainly not the only aspect to consider.