College students have a lot on their plate – from classes to exams, family responsibilities to social life, student loans to part-time jobs, and more. But what about their financial situation? How much, on average, do college students have in terms of net worth, and where do they stand compared to the rest of the population? It’s an interesting question that can offer us a glimpse into the financial lives of young people today. By looking at some interesting facts and figures, we can better understand the average net worth of college students across the United States. This article will delve into the various aspects of college students’ net worth, from the amount of debt they carry to the amount they can save. We’ll also explore the differences between college students in different states and examine how their net worth compares to the rest of the population.
A look into the average net worth of college students
College is a considerable investment, and it’s no surprise that students and their families want to understand its potential long-term return. One way to measure that return is to look at the average net worth of graduates and students. From the cost of tuition to the amount of student debt, many factors go into understanding the financial reality of college students today. We’ve compiled some interesting data to help you take a closer look at the average net worth of a college student and what it means for the future of higher education.
Surprising facts about the average net worth of graduates
The average net worth of college students can vary depending on the type of school they attend. The average net worth of students attending a public two-year college is $8,900, while that of students attending a private four-year university is $20,000. On the other hand, the average net worth of students attending a private two-year college is $10,300, which shows that college students have a small amount of savings and huge debts.
The average net worth of college students, combined with the high debt they carry, paints a picture of a struggling group. And this is an accurate assessment. Although the exact amount of debt is difficult to quantify, some estimates are available. The College Board estimates the average debt load of graduating seniors at $39,000. Other estimates put this number even higher, with CNBC suggesting students graduate with an average of $49,000 in debt. Even with the lower estimate, it’s clear that the average net worth of college graduates is being pulled down by the high debt they carry.
College students’ savings
The average net worth of graduates with papers may be low, but how much do they save? Well, the average amount of savings for college students is less than $1,000. This paints a picture of a group with relatively low savings. However, looking at the situation from another perspective may be helpful. The average savings for someone between 18 and 24 years old is under $500. Thus, college students have more savings than the general population of this age group. This may be because most people between 18 and 24 are still living at home and not contributing financially to the household.
Smart college students explore ways of saving even more during their academic journeys. For instance, every college has a professor who gives many assignments. Sometimes even the best students can be overwhelmed, but where they run for help can be the difference between saving and running into huge debts. CustomWritings has become one of the most reliable and trustworthy essay writers for intelligent students. The company provides the best writing services at affordable rates, saving students thousands of dollars every semester. Their expert writers are always available and ready to assist. While many such services exist, you’ll not find one that provides quality at more reasonable rates.
The net worth of college students by State
As we’ve seen, the average net worth of college students varies depending on their school type. But what about the State they live in? College students are estimated to be worth $24,000 in Wyoming, which is $8,000 and $11,000 higher than in California and New York, respectively. What can we learn from this? Well, many factors may be at play here. One is the cost of living, which is significantly lower in Wyoming than in New York and California. Taxation also plays a major role. States that charge higher taxes diminish students’ savings and vice versa. Lastly, the availability of opportunities for part-time jobs or permanent ones is critical. Wyoming has the lowest unemployment rate among the three states and offers more quality jobs, giving students a better chance at life.
Average net worth compared to the rest of the population
According to a survey by Sallie Mae in 2020, the average net worth of US college students was estimated to be around $5,970. The results were based on savings, investments, and liquid assets held by US college students aged 18-24. Adults between the ages of 25 and 34 had an average net worth of $10,000, those aged 35 and 44 had $100,000, while the overall median for the total population (of all ages) was estimated to be $97,300. Compared to the rest, the average net worth for US college students is significantly lower. While there are certain exceptions where individuals successfully build substantial wealth early on, this tends not to be typical due to many constraints related to being a student. For instance, young learners must contend with the increasing costs of pursuing higher education, the prevalence of low-paying jobs, and student loan debt burdens.
However, it’s important to remember that students have time on their side and earning potential, which can help increase their net worth over time if managed correctly. There are also numerous strategies that they can take advantage of concerning budgeting, investing, and saving for retirement. Taking these steps sooner could provide significant returns later in life, potentially closing the gap between the wealth levels of college students and the rest of the population.
Summing it up!
The average net worth of college students is low, but it shouldn’t be alarming. Typically, people between 18 and 24 years have the lowest net worth, as they’re yet to establish themselves. Their net worth will increase as they grow older, pay off their debts, start saving, and get promoted at work. However, with the high cost of education and the prevalence of precarious labor, escaping poverty is becoming more challenging for the American youth.