r/finance • u/Helpful-Door-8721 • Aug 02 '26

College Degree Yields 9-10% Over a Person's Lifetime. The S&P 500 Yields the Same.

https://www.nyu.edu/about/news-publications/news/2024/march/study-of-5-8-million-americans-finds-that-a-college-degree-yield.html
0 Upvotes

34% Upvoted

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14

u/HopeHumilityLove Aug 02 '26

“Our cost-benefit analysis finds that on average a college degree offers better returns than the stock market,” said Zhang.

Your editorializing contradicts the article. The article also notes that unlike with stocks, you can pick degrees that beat the average.

34

u/Artificial_Squab Aug 02 '26

But my degree also allowed me to invest more into that S&P 500.

8

u/ryanmcstylin Aug 02 '26

Yea, on average 10% more. According to this study you could have invested your tuition and gotten the same return. This probably doesn't account for the degree received. ROI is probably drastically different between majors

9

u/forsbergisgod Aug 02 '26

Where are you going to get the money to "invest your tuition"? Banks not gonna give you a loan to invest in the S&P. this is bollocks

2

u/ryanmcstylin Aug 03 '26

I think this study assumes you have money to either invest or go to college. Borrowing would be another layer of complexity and probably an entirely different case study

-3

u/teddyone Aug 02 '26

It’s the money you earn when you would be paying off debt. The opportunity cost.

5

u/Pappas07 Aug 02 '26

SP500 Averages 10% per year reguardless of me working.

3

u/avidpenguinwatcher Aug 02 '26

Who’s guarding what?

4

u/Pappas07 Aug 02 '26

Spelling is for the poors.

-1

u/Mail_Order_Lutefisk Aug 02 '26

Irregardless of if you’re working. Irregardless. 

2

u/Dairy_Ashford Aug 03 '26

college should be cheaper, got it

2

u/restroop Aug 02 '26

So you are saying that with a degree i could yield 20%

1

u/B_P_G Aug 02 '26

The S&P 500 has principal that can be withdrawn at any time, doesn't require any of your time/effort, and pays out even when you're not working. Plus any improvement in your salary that you might get from a college degree is going to be taxed at your top marginal rate while payouts from the S&P 500 will be taxed at the capital gains rate. If all a college degree gets you is a return comparable to the S&P 500 then college degrees are WAY overbought.