There’s little debate that college graduates tend to earn more than those without a degree. Data has long shown that workers with at least a bachelor’s degree earn considerably more than even those with some college experience.
But some graduates have unrealistic expectations about what they’ll make when they leave school.
A new report from Clever Real Estate found that new college graduates expect to earn about $24,000 more than is typical. Graduates surveyed said they expect to make roughly $80,000 at the start of their careers, when the average starting salary is $56,153.
Nearly 10 years after graduation, respondents said they expect to earn more than $144,000 annually. In reality, the typical graduate earns just over $95,000 at that point, according to the report.
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Students in almost every field surveyed overestimated their incomes. Communications and journalism majors came the closest, expecting to start at $64,000 — only about $4,000 above the actual average of $60,000.
Future teachers had the largest gap between expectation and reality. They anticipated earning more than $75,000 right out of school, but starting salaries tend to be under $47,000.
While many survey participants understood that most new grads don’t earn $80,000, 59% said they have a stronger work ethic and 51% said they are smarter than their peers.
Another factor: Many graduates say they are willing to work less if it means a better work-life balance.
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The good news is that for most, the $80,000 figure isn’t unrealistic long-term. As of 2024, the Bureau of Labor Statistics reports the median annual wage for bachelor’s degree holders is more than $80,000. For workers with some college but no degree, the median falls to $53,000. College graduates also have a much lower unemployment rate than non-graduates.
However, experts note that the economy has shifted in recent months. Job openings have dropped considerably in the past four years — from more than 12 million in 2022 to 6.9 million in 2024, according to the BLS.
