In our last post we detailed the substantial work earnings premium young adults with a BA or more enjoyed compared to those with lower levels of education attainment. For 25-34 year olds the 2024 median wage premium for a BA compared to an associates degree is more than $23,000; the average wage premium is more than $32,000. The median wage premium for a BA compared to a high school degree is more than $30,000; the average wage premium is nearly $40,000.
The BA work earnings premium for all workers 25 and older is even larger: the 2024 median wage premium for a BA compared to an associates degree is about $29,000; the average wage premium is more than $47,000. The median wage premium for a BA compared to a high school degree is more than $38,000; the average wage premium is nearly $52,000.
But where you can really see the economic value of obtaining a BA or more is when you look at average household net worth. Net worth subtracts out outstanding student loans as well as all other liabilities. The Federal Reserve System has recently made available quarterly data on the distribution of household wealth in the U.S. since 1989, including by education attainment.
The average household net worth premium for those with a BA or more is huge. In the fourth quarter of 2025 the average net worth premium for households with a BA or more was $1,579,000 compared to those with some college or an associates degree. Compared to those with a high school degree the average net worth premium for households with a BA or more was $1,793,000.
In 2025 average net worth was:
- BA or more: $2,239,000
- some college or associates degree: $660,000
- high school degree: $486,000
- less than high school degree: $189,000
The average net worth premium for households with a BA or more has been growing year after year, decade after decade:
- In pre pandemic 2019 the average household net worth premium was in inflation adjusted dollars $1,370,000 compared to those with some college or an associates degree and $1,499,000 compared to those household with a high school degree.
- In pre Great Recession 2007 the average household net worth premium was in inflation adjusted dollars $1,207,000 compared to those with some college or an associates degree and $1,370,000 compared to those household with a high school degree.
- In pre NASDAQ implosion 1999 the average household net worth premium was in inflation adjusted dollars around $953,000 compared to those with some college or an associates degree and $1,095,000 compared to those household with a high school degree.
- In 1989, the start of the data, the average household net worth premium was in inflation adjusted dollars $443,000 compared to those with some college or an associates degree and $585,000 compared to those household with a high school degree.
The BA or more average household net worth premium has grown from 2.2 times those with some college or an associates degree in 1989 to 3.4 times in 2025. The average household net worth premium compared to those with high school degree has grown from 3.3 times in 1989 to 4.6 times in 2025.
For those with a BA or more, having work earnings tens of thousands of dollars more than those with lower education attainment year after year over a forty year career allows one to invest far more. And those investments turn into far higher household net worth.
