Share and Follow
A recent survey highlights a significant gap between college students’ salary expectations and the actual starting wages they are likely to earn.
According to research conducted by Clever Real Estate, undergraduates aiming for a bachelor’s degree anticipate making around $80,000 in their first year post-graduation. This figure is approximately $24,000 higher than the current average starting salary, which is $56,153.
The survey, which included responses from 769 undergraduates, found that inflated salary expectations are common across various fields of study. However, students majoring in education and nursing exhibited the greatest disparity in expected versus actual earnings.
The report noted, “Despite the historical trend of teachers being underpaid, education majors still believe they will start earning $75,186, which is about 62% higher than the likely starting salary of $46,526.”
Similarly, nursing students expect to begin their careers with a salary of $83,219, which is 32% more than the realistic figure of $63,000 for nurses with one year of experience, as indicated by Clever’s findings.
But even students in higher-earning degree programs overestimated their starting salaries. Engineers, for example, expect to start at $92,452 — roughly 17% more than the $78,731 they will likely make one year out of college, the report noted.
Starting salaries weren’t the only misjudgment – students’ mid-career expectations were off, as well. Ten years after graduation, the students surveyed expected to make around $145,000 on average, but the average mid-career salary is only $95,521, Clever said.
The gap between expectations and reality comes as millions of high school graduates weigh their college decisions.
College graduates tend to earn more and face lower unemployment than those without a degree, but the perceived value of higher education has come under pressure in recent years as student loan debt continues to climb.
The rise of artificial intelligence has added to concerns, prompting some college students to reconsider their majors as fields such as computer science face new uncertainty.
Starting salaries can vary widely by location and specialization.
A recent analysis by Redfin and Glassdoor found that college graduates earn about $80,000 early in their careers in Washington, D.C., compared with roughly $65,000 in Houston and $57,000 in New Orleans.
Meanwhile, computer engineering graduates earn about $90,000 early in their careers, compared with roughly $75,000 for general engineering majors, according to an analysis by the Federal Reserve Bank of New York.