May 15, 2023

Question of the Day: By how much do college students overestimate what their starting salary will be?

To say there's a gap between expectation and reality might be a bit of an understatement.

Answer: Around $50,000

  • Expectation: $103,880
  • Actual Average: $55,260

Bar graph showing an increase in the gap between college students' expected salary and actual average starting salary year over year.

Questions:

  1. Did you have an estimate of how much you thought you’d make before you read these answers? If so, how did it compare to college students’ expectations and the actual average?
  2. When it comes to starting salaries, why do you think the expectations of college students and the actual average are so far apart?
  3. What are some potential consequences you can think of when a college graduate’s salary expectations aren’t in-line with reality?
  4. What can you do to make sure you prepare for how much money you will make when you start your first job after graduating?

 

Here are the ready-to-go slides for this Question of the Day that you can use in your classroom.

 

Behind the numbers (Real Estate Witch):

"Compensation rates have soared as employers raise salaries to attract top talent amid a competitive labor market. However, 90% of college students have seriously overestimated what they’ll make at their first entry-level job.

The average starting salary for recent graduates is $55,260, but students expect to earn almost double that — $103,880 — one year out of college. That’s nearly $46,000 more than they expected to make just three years ago."

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For more resources related to career planning, check out NGPF's Career unit.

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About the Author

Ryan Wood

Ryan grew up with and maintains a love for learning. He graduated from the University of Wisconsin-Green Bay with a degree in Business Administration and worked in sports marketing for a number of years. After living in Texas, Colorado, Tennessee, and Minnesota, the call of education eventually brought Ryan back to his home state of Wisconsin where he was a Business and Marketing teacher for three years. In his free time he likes to spend time with his wife and daughter, play basketball, read, and go fishing. Now with NGPF, Ryan is excited to help teachers lead the most important course their students will ever take.

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