Choosing the right college major is a crucial decision, one that can have long-lasting financial implications. With rising tuition costs, understanding which degrees provide the highest return on investment (ROI) is more important than ever. Recent studies show that not all majors offer the same financial benefits. Some fields of study lead to higher lifetime earnings, while others may not offer as much bang for your buck.

Let’s take a closer look at which college majors provide the best ROI and why.

STEM Majors Dominate in ROI

Science, Technology, Engineering, and Math—collectively known as STEM fields—continue to offer the highest ROI. According to a study published in the American Educational Research Journal, engineering and computer science majors top the list for lifetime earnings. These degrees often lead to high-paying jobs right out of college and only continue to rise in value over time.

For instance, engineers typically earn around $70,000 per year just starting out, and those numbers can skyrocket with experience. Computer science graduates, particularly those who go into software development or cybersecurity, also see strong earnings growth over their careers.

The demand for STEM professionals is consistently high, and it’s not expected to slow down anytime soon. With industries like technology and healthcare booming, these majors are solid bets for long-term financial success.

Business Majors Offer Strong Returns

If STEM isn’t your thing, don’t worry—business majors also come with impressive ROI. Degrees in business management, finance, accounting, and economics are all linked to high-paying careers. Financial managers, for instance, earn an average of $102,857 per year, making this a lucrative field for anyone interested in numbers and strategy.

Another highly profitable path is becoming a business consultant. Starting salaries are around $72,969 annually, and with experience, consultants can command even higher fees, particularly if they specialize in areas like technology or marketing. Business degrees offer flexibility, as they can lead to careers in various industries, from banking to startups.

Health-Related Degrees Have Strong Earnings Potential

Healthcare continues to be one of the fastest-growing sectors, and degrees in this field offer strong returns. Nursing, for example, is a high-ROI career choice, with nurse practitioners earning an average of $120,621 annually. For those with the right qualifications, the field offers plenty of opportunities for advancement and higher pay.

Other healthcare roles, such as radiation therapists and physician assistants, also offer great returns on relatively shorter educational programs. These careers provide strong salaries—often in the six-figure range—and excellent job security due to the ongoing demand for healthcare professionals.

Education, Humanities, and Arts Have Lower ROI

While STEM, business, and healthcare majors dominate in terms of ROI, other fields don’t perform as well financially. Majors like education, humanities, and the arts tend to have lower average salaries, which can affect their overall ROI.

For example, education majors often start with salaries that hover around $40,000 to $50,000, which is much lower than their STEM and business counterparts. Workers in fields like social work, psychology, and the arts also typically have lower salaries. These degrees might offer personal fulfillment but often don’t provide the same financial return over time.

A recent study from the Georgetown Center on Education and the Workforce also found that workers with degrees in liberal arts, humanities, and education earn significantly less on average compared to those with degrees in health or business. However, it’s important to note that ROI isn’t just about money. Some of these careers offer stability and personal rewards that financial metrics can’t measure.

Associate Degrees with Good ROI

If a four-year college degree isn’t for you, an associate degree can also offer a great ROI. Jobs like web development and radiation therapy can be attained with a two-year degree and often lead to solid earnings. For example, web developers make an average of $77,791 per year, and radiation therapists earn around $85,921 annually.

These fields offer an excellent balance of a shorter educational commitment and strong financial returns, making them good options for anyone looking to enter the workforce quickly while still earning a good living.

Why ROI Matters in College Majors

At the end of the day, ROI helps students make informed decisions about their education. It’s not just about picking a major you’re passionate about, but also considering how that major will pay off in the long run. As Liang Zhang, professor of higher education at NYU Steinhardt, pointed out, “On average, a college degree offers better returns than the stock market.” That’s a pretty compelling reason to think carefully about what you study.

However, keep in mind that ROI is only one piece of the puzzle. Career satisfaction, job stability, and personal fulfillment are also important factors to weigh when choosing a major. Some careers might not offer the highest salaries, but they can provide other benefits that contribute to a meaningful and rewarding life.

Making the Right Decision for Your Future

Ultimately, picking a major with a high ROI can help set you up for financial success. Majors in STEM, business, and healthcare offer strong earnings potential and job security, making them some of the best choices if ROI is your main focus.

Still, it’s essential to balance your financial goals with your personal interests and career aspirations. After all, choosing a career you enjoy can lead to a more fulfilling life—and that’s something no paycheck can replace.

Which is an example of why higher education typically has a positive return on investment (ROI)?

The jobs you get with higher education will earn more money than jobs without a degree or certificate.