A Simple Way To Make More Money…

With cost of living increasing across the country, it is more important than ever to have a college degree. Having a degree allows a person to compete for better jobs, which increases their income. Taking a look across the country, there is a clear correlation between states with high median households and a high percentage of the population over the age of 25 with bachelor degrees or better.

Figure 1: Population 25 Years and Older With a Bachelors Degree or More

According to Figure 1, there is a great amount of variance by state when it comes to the percentage of people who have earned a bachelors degree or better. Some areas, like the northeast, are mostly blue, indicating that they have some of the highest percentages of college educated people whereas the southeast is predominantly red, indicating that they are uneducated.

Figure 2: Median Household Income by State

Figure 2 shows the median household income of every state in the continental United States. Blue states have higher incomes whereas red states have lower ones. The darker a state is the farther away it is from the middle.

Figure 3: Median Household Income by State

Figure 3 shows the distribution of median households between every state. There are a few states, such as New Jersey, Maryland, Connecticut and Alaska that are significantly higher than the other states. This causes the mean, $51,641, to be higher than the median, $49,386. When the mean is higher than the median, it implies that the data is skewed in a certain direction. In this case the data is skewed towards states with higher incomes.

Figure 4: Relationship Between Median Household Income and % of the Population 25 and older with a Bachelors degree or higher

Figure 4 is a scatter plot that shows the relationship between the percentage of a states population and it’s median household income. It is apparent that for the most part, states with larger percentages of college educated people have higher median household income.

Figure 5 shows the change in median household income for six states; the two highest, the two lowest and the two in the middle. Over the course of 5 years, the state that started higher grew at a slightly faster rate.

In conclusion, it is apparent that there is a correlation between how much money someone makes and whether or not they graduated from college.This indicates that people who want to make more money should strive to graduate.