Although there are many factors that contribute to building wealth, education level is one of the most important. While getting an advanced degree like an MBA doesn’t guarantee increased wealth, there’s a clear correlation between education and net worth.
Certainly, an MBA is a big commitment, requiring two years of additional professional schooling along with tens of thousands of dollars of investment. But as noted billionaire Warren Buffett has often said, “the best investment you can make is in yourself.”
Here’s a look at the average salary of people with and without an MBA.
Find Out: What Salary Single People Need To Live Comfortably in 100 Major US Cities
Discover More: 6 Unusual Ways To Make Extra Money That Actually Work
Trending Now: Suze Orman’s Secret to a Wealthy Retirement–Have You Made This Money Move?
Average Salary of People With a High School Degree
In most cases, a high school degree is the bare minimum level of education for getting a decent-paying job. However, many of the top-paying jobs remain out of reach unless you obtain at least a bachelor’s degree.
According to the Bureau of Labor Statistics, as of Q3 2024, the average salary of those with a high school degree was $946 per week. That translates to about $49,192 per year, or roughly $24.59 per hour based on a 2,000-hour work year.
Read Next: I’m a Self-Made Millionaire: Here’s How I Use ChatGPT To Make a Lot of Money
Average Salary of People With a College Degree
Getting a college degree is one of the most important steps to earning a higher salary. Many of the better-paying jobs require a college degree just to get in the door, although that is not always the case.
Nonetheless, BLS statistics show that workers with a college degree earn 62% more than those with only a high school degree, on average. The average weekly salary of $1,533 for college graduates means they earn $79,716 per year, or about $39.86 per hour.
Average Salary of People With an MBA
If you’re looking for the highest possible salary, a graduate degree can kick up your earnings even more. An MBA, which can help prepare you for a career in high-paying finance, is a good path for those looking to maximize their earnings.
But an MBA isn’t a generic thing. You can use an MBA to get a job in many different industries and specialties, from management to underwriting to financial analysis and more. And where you live can also play a big role in how much you can make after you earn your MBA.
On average, you should expect to earn between $100,000 and $120,000 as a starting salary for a job requiring an MBA, or roughly $1,923 to $2,307 per week. That amounts to an hourly rate of between $50 and $60.
The Bottom Line
It’s important to note that averages are just averages, and individual circumstances can vary greatly. Just because you only have a high school diploma doesn’t automatically mean that you can’t find a high-paying job.
In fact, over time you could likely earn six figures as a mechanic, plumber or police detective with just a high school diploma. But in aggregate, the higher the level of your education, the more likely it is that you can earn a significant salary. This is particularly true if you get a graduate-level degree like an MBA.
More From GOBankingRates
7 McDonald’s Toys Worth Way More Today
4 Companies as Much as Tripling Prices Due To Tariffs
Use This Checklist to See if Your Family is Financially Secure
7 Wealth-Building Shortcuts Proven To Add $1K to Your Wallet This Month
This article originally appeared on GOBankingRates.com: The Average Salary of People With and Without an MBA
