Money Management

The highest-paying college major is engineering, while other STEM majors are high on the list. Learn how much you can earn with a degree in these fields. 

The average cost of a bachelor’s degree is around $104,000 if you’re attending an in-state four-year public institution. The cost balloons to over $223,000 for students attending a four-year private nonprofit university.

Given those jaw-dropping costs, you’ll want to choose a major that will make your degree pay off and pad your bank account. Let’s break down the 10 highest-paying college majors.

1. Engineering

Median wage mid-career: Up to $120,000

Eight of the top 10 majors with the highest median wages for recent graduates are in engineering, according to 2023 data from the Federal Reserve Bank of New York. But we’ve grouped them into one category for all the future non-engineers who are reading.

Average mid-career wages vary somewhat by type of engineering degree. But as you’ll see below, engineers of all types can expect a generous salary:

Chemical engineering: $120,000Computer engineering: $114,000Aerospace engineering: $112,000Electrical engineering: $105,000Industrial engineering: $100,000Civil engineering: $100,000

2. Computer Science

Median wage mid-career: $105,000

If you’re a tech wizard, consider earning a computer science degree. Computer science majors are frequently hired for high-paying roles like web developer, software engineer, and programmer.

Though layoffs and hiring freezes have gotten a lot of attention lately, the long-term job outlook for computer science majors is strong. According to the U.S. Bureau of Labor Statistics, employment for computer and information researchers is expected to grow by 23% through 2032, a rate that’s much faster than all occupations.

3. Physical Sciences

Median wage mid-career: $104,000

A physical sciences degree is less career-focused than an engineering or computer sciences degree. Physical science studies usually include physics, chemistry, mathematics, and geology, making this major a popular choice for pre-medicine students or those seeking a career in engineering.

4. (tie) Pharmacy

Median wage mid-career: $100,000

Students typically pursue a bachelor’s degree in pharmacy with the goal of becoming a pharmacist, which requires a doctorate of pharmacy. In fact, 65% of pharmacy degree holders have a graduate degree. But those with only an undergraduate degree in pharmacy can often find jobs at pharmaceutical companies, clinical research organizations, cosmetics companies, or government agencies.

5. (tie) Economics

Median wage mid-career: $100,000

To become an economist, you’ll typically need a graduate degree. But a bachelor’s degree in economics can still set you up for several lucrative careers. People who have a bachelor’s degree in economics are frequently employed as actuaries, financial analysts, data scientists, and market research analysts.

6. (tie) Finance

Median wage mid-career: $100,000

A finance degree can open the door to a number of professions. Those with finance degrees often work in banking, insurance, corporate finance, and investment services. A finance major can be a good choice if you plan to eventually pursue an MBA. Many finance majors also complete advanced certifications, such as the Chartered Financial Analyst or Certified Financial Planner designations, to showcase their expertise.

7. (tie) Construction Services

Median wage mid-career: $100,000

Plenty of jobs in the construction industry don’t require you to attend college. But companies are increasingly requiring a bachelor’s degree for leadership positions. Common career paths for people with construction degrees include field engineer, construction superintendent or project manager, and general contractor.

8. Business Analytics

Median wage mid-career: $99,000

Businesses need data about virtually everything. Business analysts develop mathematical models to help organizations identify trends, improve efficiency, make predictions, and track success. The major focuses heavily on economics and statistics. Though you can get an entry-level position with a bachelor’s degree in business analytics, many higher-level positions require at least a master’s degree.

9. Information Systems and Technologies

Median wage mid-career: $90,000

An information systems and technology degree prepares students for an array of professions, including web developer, database administrator, and cybersecurity. Pretty much every company needs IT services, so it’s not surprising that the Bureau of Labor Statistics predicts that employment in computer and information technologies will grow at a much faster rate than all other occupations through 2032.

10. Mathematics

Median wage mid-career: $88,000

A mathematics major is more of a generalist degree than many of the majors on this list, but it can be a stepping stone to a variety of high-paying professions. Many math majors land jobs in engineering, data analysis, statistics, finance, and actuarial science. Some math majors who earn an advanced degree go the academia route, as well.

What do all these majors have in common?

The common thread among the highest-paying college majors is that they’re all in STEM fields (i.e., science, technology, engineering, and mathematics). That doesn’t necessarily mean that everyone should become a STEM major. But if you’re looking to maximize the return on the time and money you spend earning a degree, consider a degree in a STEM field.

Regardless of what major you’re interested in, be sure to consider whether there’s a viable way to make a living using your degree. Take advantage of career counseling services while you’re in college to ensure you’re aware of potential career paths.

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I have the majority of my money in an S&P 500 index fund. Keep reading to find out why I invest simply, and whether you should, too. 

Over the years, I’ve worked hard to transfer money out of my checking account into an investment account to save for the future. As a result, I have a reasonable brokerage account balance.

While I have a good amount of money in my brokerage account, I don’t own a lot of different investments. In fact, almost every dollar is invested in one simple investment: an S&P 500 index fund.

Here’s why I keep so much of my money in one asset instead of spreading it around more.

The S&P 500 has a consistent track record

One of the biggest reasons why I’ve chosen to put my money into the S&P 500 is because this investment has a very long track record, so I know what I can reasonably expect to earn. The S&P 500 has consistently provided around 10% average annual returns since 1928.

Since there’s very little reason to expect that this will change, I feel pretty confident that I can expect my portfolio to give me an average 10% return on investment (ROI) over the long term if I keep my money invested in the S&P 500.

While I could potentially beat this if I picked individual stocks, I’d have to be really good at selecting investments for that to happen. And my returns would be uncertain, which would make it harder to plan how much I need to invest for the future.

If you want an investment with a stable, consistent track record, the S&P 500 may just be a great investment option for you as well.

It provides instant diversification

Because the S&P 500 invests in big businesses in lots of different industries, my investment in it allows me to diversify my portfolio without any real effort on my part. I don’t have to look for dozens of different assets to invest in to make sure I’m exposed to different industries — this one investment is sufficient to give me exposure to different parts of the economy.

If you have a hard time deciding how to divide up your investment dollars across companies in different industries — especially since you’d need to learn about a lot of different types of companies to buy individual stock shares of businesses in different fields — then an S&P 500 index fund might be an easy option for you.

I don’t want to have to think about my investments

Finally, one of the biggest reasons why I’ve chosen to put my money into an S&P 500 fund is that I don’t have to think about it. There’s no need to research beyond using my brokerage account’s screening tool to find a low-fee S&P 500 ETF (exchange-traded fund). I don’t need to worry about whether I should sell due to changing economic conditions. In fact, I don’t even need to check in on my portfolio since my money is just invested automatically in this investment.

If you’re hesitant about opening a brokerage account because you’re afraid investing is complicated or because you don’t know what to invest in, you don’t have to be. You can just pick a simple investment like an S&P 500 fund and put most of your money into it, too. It takes about 10 minutes to get your account open, find a fund, and buy in, so do it now to start your money growing for you.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
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I’ve streamlined my money management process by automating as much as possible and simplifying my budget. Read on to learn how my techniques make life a lot easier. 

Managing money can be complicated, but it doesn’t have to be. I’ve got my financial affairs down to a science and I spend just 10 minutes a month managing my money.

Here’s how I made it happen, so I don’t really have to think about my personal finances for more than a few minutes a month.

I’ve automated almost everything I can

The single most important step I took to simplify the process of managing my money was automating every single thing I could.

I have set up:

Automatic mortgage paymentsAutomatic bill payments to all of my utility companies, my cellphone service provider, and other services I pay forAutomatic payments to my credit cards for the full balance that is dueAutomatic transfers to retirement accounts and savings accounts

All of this money comes out of my account when I get paid as soon as the money is deposited into my bank account. I just take a quick look to be sure the funds have been transferred where they need to go and that’s all I have to do.

By setting up automatic transfers, I am 100% confident that I’m on track with my savings, and I won’t ever miss a payment due to forgetting a deadline. I also don’t have to think about where the money should be going — it’s just delivered effortlessly where it needs to go.

Fortunately, this process is really easy. If you also want to automate everything, you can do so by using either your bank account’s bill payment and money transfer services or you can do it by signing into your credit card, utility companies, and investment accounts and arranging for them to auto-debit funds.

The only catch is you need to make sure you have the money in your account and don’t overdraft. If you can keep a bit of a financial cushion in your account — like around $500 to $1,000 — and you keep your fixed expenses reasonable, this shouldn’t be an issue. That’s the approach I’ve chosen to take to make sure my automations work smoothly.

I’ve opted for a simplified approach to budgeting

Another thing I’ve done is avoid making a detailed budget. Rather than allocating every single dollar that I spend — and tracking where my money goes to be sure I stay within budget — I simply follow a 50/30/20 budget instead.

With a 50/30/20 budget, I’ve kept my fixed expenses to 50% of my income. And I automatically save 20% of my money every month, with the funds moving to the appropriate places as part of my automation process. This means I know the remaining 30% is just there in my checking account ready to do what I want with it.

Since I don’t have to decide where every dollar goes, I don’t have to spend time budgeting. I also don’t really keep track of where exactly I’m spending the 30% any more. I just know that the money in my checking account is there and ready to be spent. I check my balance once in a while to make sure I’m not charging more on my credit cards during the month than I can pay off from the funds in my account. But I don’t have to think about my spending beyond that.

My system is really simple, and it’s also an effective way to make sure your money does what you need it to without much effort. If you want to spend only 10 minutes a month managing your own funds while still ensuring you’re making the right financial moves, you may want to consider adopting a 50/30/20 budget yourself and automating your savings and bill payments. That way, you can easily stick to this without any thought or time wasted.

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Gearing up to spend a big winter holiday all by your lonesome? Keep reading for your guide to a happy holiday that’s both frugal and all about you. 

For the last several years, I’ve spent Christmas on my own. This is due to a few different factors, and it used to bother me, but now I lean in and embrace the peace and quiet I get on a holiday that is extremely busy and stressful for a lot of people.

It’s a time of year that is also very expensive, so if you’re struggling with the thought of spending Christmas alone, take some comfort in the fact that going it solo means you control how much money you spend. I’ve been pretty happy with my frugal holidays the last few years, and it’s fabulous to go into the new year without extra debt. Here are a few of my favorite ways to treat myself without leaving a big hole in my checking account.

Channel your inner Julia Child

Since preparing food for yourself at home is basically always going to be cheaper than eating at a restaurant or getting takeout, you’re going to come out ahead financially if you decide to play cooking show host from the comfort of your very own kitchen.

Cooking is one of my favorite activities, and while I usually save my fancy skills for when I cook for people I love, a solo holiday is a great time to remind myself that I’m important, too. Plus, one of my favorite credit cards is a grocery card that pays an outstanding cash back percentage at the supermarket, so I use it to buy ingredients for whatever meal I’m in the mood for.

Get a free trial of a new streaming service

A solo holiday is an excellent excuse to try out a new streaming service. You’re allowed to watch whatever movie or show you want if you’re on your own — no judgment! Not all streaming services offer a free trial, so here are a few that do:

YouTube Premium: OK, maybe this one isn’t a streaming service in the traditional sense, but it’s absolutely my favorite place to watch streaming video and listen to music without ads. You can get a one-month free trial for YouTube Premium, too.Hulu: You can get a free one-month trial for Hulu’s No Ads plan. (Personally, I’ll never bother with a streaming service that has ads — if I wanted to watch commercials, I’d still have cable.)Amazon Prime Video: If you want to try out fast free shipping with no minimum purchase required along with a streaming video service (among other Amazon perks), you can get a free month of Amazon Prime.

If you decide not to keep the streaming service after your trial is up, make sure you cancel the membership to avoid being charged. I usually put an alert in my calendar a few days beforehand to remind me to cancel.

Treat your pets for less money

While I spend Christmas without the company of other humans, I am lucky enough to spend the holiday with my three favorite furry beings. Cats don’t know it’s Christmas, but that doesn’t mean I can’t buy them gifts. I tend to buy a lot of my pet supplies online, and frequently lean on Amazon or Chewy for cat food, toys, and beyond.

Chewy runs a lot of specials and coupon deals — as I write this, Chewy has a special early Black Friday deal, and you can earn a $30 Chewy gift card for spending $100. I took advantage of this deal to restock on cat food and buy gifts, and that $30 gift card will pay for a bag of cat food the next time I need one.

According to the CDC, the benefits of having pets include lower blood pressure and cholesterol levels — and being less lonely. So if you’re spending your holiday with non-human companions, don’t forget to thank them for all they do for you.

Buy yourself a reasonable gift

Finally, don’t forget to get yourself a nice present! This doesn’t mean you should spend too much on it, though. Let’s say you’re shopping for a new iPad. In your search, it pays to make these moves:

Explore different retailers: You’re not likely to find a new iPad for cheap on Apple’s website, but you could buy a refurbished one there (like new, but cheaper!). Other good places to look include Amazon and Best Buy.Use the right payment method: A good rewards credit card can be your friend in this situation. But another option to consider is a card offering 0% interest on your purchase if you’d like a little time to pay it off.Purchase at the right time: If you’re hoping to have a package to open on the holiday, make sure you order it (or go buy it in person) ahead of time. It would be really disappointing to be without your shiny new iPad to enjoy while you’re on your own.

Going solo for a holiday can be great — you can spend the day however you wish. My own Christmas plans this year will likely also include a brisk walk outdoors and getting some work done — freelancing means I don’t get paid holidays off. Consider using my tips to ensure you have a fantastic day, too.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool has positions in and recommends Amazon, Apple, and Best Buy. The Motley Fool has a disclosure policy.

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