Most new college grads expect $80K starting pay — are they overshooting?

Theres little debate that college graduates tend to earn more than those without a degree. Data has long shown that workers with at least a bachelors degree earn considerably more than even those with some college experience.

But some graduates have unrealistic expectations about what theyll make when they leave school.

A new report from Clever Real Estate found that new college graduates expect to earn about $24,000 more than is typical. Graduates surveyed said they expect to make roughly $80,000 at the start of their careers, when the average starting salary is $56,153.

Nearly 10 years after graduation, respondents said they expect to earn more than $144,000 annually. In reality, the typical graduate earns just over $95,000 at that point, according to the report.

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Students in almost every field surveyed overestimated their incomes. Communications and journalism majors came the closest, expecting to start at $64,000 only about $4,000 above the actual average of $60,000.

Future teachers had the largest gap between expectation and reality. They anticipated earning more than $75,000 right out of school, but starting salaries tend to be under $47,000.

While many survey participants understood that most new grads dont earn $80,000, 59% said they have a stronger work ethic and 51% said they are smarter than their peers.

Another factor: Many graduates say they are willing to work less if it means a better work-life balance.

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The good news is that for most, the $80,000 figure isnt unrealistic long-term. As of 2024, the Bureau of Labor Statistics reports the median annual wage for bachelors degree holders is more than $80,000. For workers with some college but no degree, the median falls to $53,000. College graduates also have a much lower unemployment rate than non-graduates.

However, experts note that the economy has shifted in recent months. Job openings have dropped considerably in the past four years from more than 12 million in 2022 to 6.9 million in 2024, according to the BLS.