In 2022, the Federal Reserve’s Survey of Consumer Finances revealed that households led by a college graduate had a median net worth of $464,600. By contrast, households headed by someone with only a high school diploma had $106,800, and those without a diploma held $38,000. On average, this indicates that college-graduate households possess about four times the wealth of high-school-graduate households and over 12 times the wealth of non-graduate households. However, this may not apply to every graduate, as some college degrees are more financially rewarding than others.
A similar trend is observed in income. An April 2025 Federal Reserve Bank of New York report indicates that the median income for bachelor’s-degree holders is approximately $80,000 per year, compared to $47,000 for high school graduates. Additionally, the Association of Public & Land‑Grant Universities, analyzing the U.S. Bureau of Labor Statistics 2025 report, shows that bachelor’s degree holders earn $40,500 — or 86% — more annually than those with only a high school diploma. This disparity underscores that earning a degree still offers a more substantial path to accumulating real wealth than living without diplomas. Nevertheless, there are high-paying jobs available that do not require a college degree. Higher earnings directly contribute to increased savings and net worth over time.
Age-range of degree holders with high net worth
According to the National Center for Education Statistics, in 2022, full-time workers aged 25 to 34 with a bachelor’s degree earned a median of $66,600 — about 67% more than the $40,000 earned by their peers with only a high school diploma. Earning more early on allows college graduates to save more and pay off debt faster, providing them with a financial advantage before middle age. Between ages 35 and 54, the gap in net worth related to a degree is at its widest.
Beyond income, college graduates tend to save more for retirement through workplace programs such as the SEP IRA and can build home equity more quickly. This highlights that a high net worth extends beyond simply having a college degree. While a college degree can open doors, it doesn’t guarantee lasting wealth. High-net-worth individuals enhance their savings by utilizing diverse income sources — starting a business, owning rental property, investing in the stock market, and pursuing side projects — rather than relying solely on a salary.
A degree is still not all you need
Even with a degree, it is crucial to manage risk and adhere to a clear financial plan to transform any form of education into lasting wealth. Additionally, having appropriate insurance — such as life, health, disability, and even extra liability coverage — protects new assets from unexpected events. Yet, the LIMRA’s 2024 Life Insurance Fact Sheet reveals that only 51% of U.S. adults possess an individual life policy, down from 63% in 2011, leaving many families vulnerable to financial setbacks if illness or death occurs.
Simultaneously, the 2024 Insurance Barometer Study by Life Happens finds that four in 10 middle-income Americans recognize they need more life insurance, which may require them to sell investments or incur debt, thus diminishing their net worth over time. However, a college degree isn’t the sole path to wealth. Ralph Lauren, who left high school early, established a luxury fashion empire now valued at over $10 billion through creative vision, strong brand development, and astute money management. His story illustrates that an entrepreneurial spirit, calculated risk-taking, and preparation for unforeseen challenges are as crucial as formal education. With these qualities, anyone, degree holder or not, can build substantial net worth.
