Higher levels of education are correlated with higher earning potential. Data from the U.S. Census Bureau shows that average annual income increases with educational attainment, from $27,448 for high school graduates to $63,174 for graduate degree holders. While a college education requires time and financial investment, it pays off in higher lifetime earnings. Vocational associate's degrees provide a middle path for increased earning potential without a full bachelor's, with respiratory therapy as an example leading to a $52,200 average salary. Beyond financial returns, college degrees open up rewarding career options and a better quality of life.

1. Increasing Earning Potential with Higher Education
The business definition of earning potential, according to bnet.com, is the amount of money an
individual will be able to earn in his professional capacity.
One of the biggest expectations that everyone has always had from education is to increase
earning potential. However, this has taken a whole new meaning post recession. It won’t be an
exaggeration to say that for many, the only reason to invest time and money on college education
is to increase their capacity to earn.
What lends credibility to the phrase “the more you learn, the more you earn” is the data for
median annual earnings by educational attainment released by the U.S. Census Bureau.
According to the bureau, the annual income of high school graduates or equivalent is $27,448.
The earnings start rising as the level of education increases, with those who have some college
or an Associate’s degree making $33,838 per year and those with a Bachelor’s degree earning
$47,853. The income of graduate or Master’s degree holders is the highest at $63,174.1 If there
was ever a doubt in your mind about the significance of college education in increasing your
earning potential, then surely these numbers should clear it.
Yes, college is probably going to eat up a considerable chunk of your parents’ savings or you
might have to fund it by taking a student loan, but it’s an investment that is likely to bear rich
dividends through your life. And there are several options available to suit everyone’s goals.
If academics are not your forte, it doesn’t mean you have to rule out college altogether. You can
still increase your earning potential by pursuing a two-year Associate’s degree in fields like
healthcare or computers where there is a huge demand for trained workers. For example, an
Associate’s degree in respiratory therapy will qualify you for entry-level positions as a respiratory
therapist, whose average annual income is $52,200.2 Now that’s a fair deal in return for two years
of education, wouldn’t you say?
A Bachelor’s degree can boost these earnings further, especially if you are smart about the major
you pick. There are some rewarding careers like accounting, computer science, and healthcare
administration for which a Bachelor’s degree is the minimum qualification. A Bachelor’s degree
will not just increase your earning potential, but also provide you a wider base of quality jobs from
which to choose.
Needless to say, with professional and graduate degree programs like MBA, law, or medicine, the
sky is the limit as far as earning potential is concerned. However, you should go down that road
only if you have the inclination and the resources for extensive schooling that these professions
require.
Taking a cue from students who are in a rush to join the workforce, many universities and
colleges have also introduced accelerated degree programs that allow students to complete their
post-secondary education in a shorter span of time than that afforded through traditional colleges
and universities. Such degrees are a brilliant idea because the sooner you finish school, the
sooner you can start making a living.
Whichever field you choose to enter, college degree programs can help you reach the next level
not just in terms of a paycheck, but also the quality of your life!
1
U.S. Census Bureau, 2006-2008 American Community Survey
2
Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, 2010-11
Edition, Respiratory Therapists