In this economic downturn, if you're considering a return to school, you're probably wondering, is it worth it? The answer really depends on the job you want. Research conducted by the U.S. Bureau of Labor Statistics identifies fields in which employees with a master's degree earn a considerable earning premium over those with bachelor's degrees.
Here's a look at five jobs with high-earnings premiums:
1. Financial analyst: 47 percent earning premium for master's over bachelor's degree.
"Financial analysts with master's degrees are valued at a premium," says Robert Schmansky, a certified financial planner and CFP course instructor. "Firms are willing and able to pay a premium for intelligence, the ability for in-depth research, and creativity."
While a bachelor's in finance will provide a broad education, a master's in finance will allow a worker to really dive into a specific financial specialty making it exceptionally valuable, attests Susan D. Strayer, SPHR, author of The Right Job, Right Now. "Having a master's in a financial role also lends credibility and pedigree," she says. "In such a highly competitive field, a graduate degree matters when you're trying to get that extra leg up or prove you can take on the role. A financial analyst who has strong work experience, a master's in finance and a CFA, is well-rounded both practically and theoretically."
2. Tax preparer: 43 percent earning premium for master's over bachelor's.
In this case, master's degrees are generally more valuable for professionals who work with clients with complex tax issues, such as big corporations. Tax preparers with a bachelor's degree and/or CPA designation can usually handle run-of-the-mill tax issues. "For tax preparers who are just preparing taxes on their own or for the local accounting firm, an advanced degree isn't as valuable as experience and a CPA," says Schmansky.
3. Financial manager: 42 percent earning premium for master's over bachelor's.
The duties of financial managers vary based on the specific roles they play at their firms, according to the BLS, which can include overseeing the preparation of financial reports, directing investment activities, and implementing cash management strategies. "As a financial manager, the need for an advanced degree depends heavily on your profession," says Schmansky. "In a service or research role, advanced degrees can be a foot in the door and differentiator from your peers. If, on the other hand, you want to manage a sales force, then sales experience and success will give you much more credibility with those you manage."
4. Education administrator: 41 percent earning premium for master's over bachelor's.
"During my tenure in K-12 administration, teachers were paid strictly on a pay scale," says Dr. Jay McCurry, founder of McCurry Training and Coaching, an Edmond, Oklahoma firm specializing in career-related performance and productivity. In nearly all states, it is required that administrators hold at least a master's degree and certification, and earnings are based on years of experience and degree level.
"The higher one's degree level [in education] and/or experience, the higher that person's salary -- which in turn affects retirement and overall benefits," he explains. "I would recommend that if a teacher simply wants to remain in the classroom then a master's degree will definitely be a worthwhile investment in the long run. If an administrator who already holds a master's degree wants to remain in administration, then it is definitely to their benefit to pursue a doctorate as well."
5. Counselor: 41 percent earning premium for master's over bachelor's.
"The master's degree in counseling prepares a practitioner for crucial professional responsibilities," says Rebecca Daniel-Burke, director of Professional Projects & Career Services for the American Counseling Association. "These include in-depth understanding of human development, experience and training in a variety of counseling strategies and therapeutic approaches, instruction on assessing and evaluating clients, and training on creating a comprehensive treatment plan."
Daniel-Burke says counselors with this in-depth training are able to create a thriving practice where they can command higher fees based on their credentials, or they can seek a staff position at treatment facilities that look for candidates with advanced degrees.
