FINANCIAL FRESHMAN #002

TL;DR → As a student, you are entitled to an understanding of your earning potential after graduation. University-specific data, publications from industry-specific organizations, and the Bureau of Labor Statistics (BLS) can all help you understand this potential.

You presumably made the investment in your higher education to improve your life in some manner. This investment can pay off in a number of ways, but your starting salary after graduation is certainly one of the most tangible.

A number of factors will influence this starting figure, including your area of study, the company you go work for, where in the country you reside, and even the state of the job market at the time of your graduation.

To prepare financially for your full-time career, it is crucial to transition into the workforce with salary expectations that are realistic and defensible. There are a number of ways that todays college student can gain this insight, without having to create any accounts or bypass any paywalls.

Tool #1: University-Specific Public Domain Data

Many colleges and universities maintain datasets that include the starting salaries of their alumni. For example, Virginia Tech’s Office of Career and Professional Development publishes an annual First Destination Report, which can give college students an accurate picture of what salaries students commanded in the years prior.

The Anderson School of Management at UCLA publishes an Employment Report for their students, highlighting the salary, geographic location, and employer of their recent graduates.

The institution you attend will certainly govern what the accessibility of this information may look like. Try researching your specific school or program to see what sort of insights you can gain for yourself.

Tool #2: Industry-Specific Reports and Publications

If it proves challenging to find information specific to your college or program, you may have better luck searching within professional societies. Start by identifying the leading professional organizations in your field of choice, such as the American Marketing Association (AMA) or the Institute of Electrical and Electronics Engineers (IEEE).

Within these organizations, it is very common to find published content highlighting compensation trends in the industry, such as this 2020 article from the AMA.

Tool #3: The Bureau of Labor Statistics (BLS)

While it will likely require some sorting, the annual Modeled Wage Estimates from the Bureau of Labor Statistics (BLS) can also help paint a picture of future expected salary.

For example, exporting the 2022 data and applying some filters on column C (“Area Text”) and column F (“Work Level Text”) can provide meaningful data points on expected entry-level accountant compensation in the Albuquerque, NM area. When using this information, it’s best to be mindful of the sample size available.

Using these three tools in unison is likely to provide a clearer picture of what salary you can expect after graduation. As a student, you are entitled to an understanding of your earning potential. Leverage these resources to set realistic expectations and start your career on solid financial footing.