By Staff Writer - March 5, 2025

Preparing the Next Generation of Professionals

On February 22, 2025, Dr. Peter Rupert was a guest speaker at the UCSB Latinx Business Association Leadership Conference. He delivered an insightful presentation to the UCSB students about the importance of education and financial literacy. He highlighted several critical aspects of the education-earnings relationship, with particular emphasis on the challenges and opportunities for Hispanic students.

Using data from the Bureau of Labor Statistics, the presentation illustrated significant wage disparities between different education levels and ethnic groups. Dr. Rupert explained that while college graduates consistently earn more than high school graduates, Hispanic individuals face additional challenges. Looking at the “Usual nominal weekly earnings” graph below, we see that Hispanic college graduates (the green line) earn less on average than the overall average (the red line). 

 

Turning to “Usual nominal weekly earnings relative to white men”, we see that Hispanic women face an even greater disadvantage. The dotted black line at 1.0 is the normalized weekly earnings for white men. We see that women on average earn less than white men, with Hispanic women earning roughly 60% of what white men make. The gap is narrowing over time, but is still notable.

 

If high school seniors choose to go to college, student debt emerges as a major obstacle to achievement for many Hispanic students. 42% of all borrowers are still paying off loans 20 years later. The good news is that Hispanic borrowers graduate with the lowest average cumulative amount of student debt. Furthermore, Hispanic borrowers have lower average monthly loan payments ($307) compared to Asian ($346), white ($349), and Black borrowers ($386).

 

The not-so-good news is that their debt to income ratio is greater, as Hispanics are earning less on average. Having a higher debt to income ratio has significant social implications for Hispanic students: 32.5% delay getting married and 37.4% postpone having children due to financial concerns and a large fraction delay buying a home. 

Dr. Rupert also advised the LBA students to be strategic in their collegiate and career choices. Choosing a college degree that pays more on average is a wise decision. According to the National Center for Education Statistics, in 2021-2022 men chose degrees in business, engineering, computer and information science, social sciences, and biological and biomedical sciences. Whereas women chose degrees in health professions, business, psychology, biological and biomedical sciences, and education. With the ever-rising cost of a college education, Dr. Rupert urged for the students to really consider what they major in and to choose something with high-earnings potential. 

 

Below are the top 15 occupations that women go into, compared to how many men enter that same occupation, followed by the top 15 occupations that men go into.

 

When we think about different professions, we also think about the different starting salaries. Looking at the 2023 job market, for Bachelor’s Degrees the average starting salaries for the top-paid categories of majors were Computer and Information Sciences ($91,411), Engineering ($80,085), Mathematics and Statistics ($79,859), Business ($66,578), and Health Professions and Related Programs ($62,143). Whereas the average starting salary with just a Bachelor’s Degree for Psychology was $44,084 (3rd most conferred degree for women), Biology was $47,839 (4th most), and Education was $43,570 (5th most).

Overall, the average starting salary for a Bachelor’s degree for the class of 2023 was $63,721. For men, the average starting salary was $72,190. For women, the average starting salary was $59,778. This is not to say that the gender gap isn’t real, but when looking at the data, students need to seriously think about the major they are choosing and make sure they’re choosing a high return on investment.

For the entrepreneurially-minded students, there is more good news. According to data from the Annual Business Survey from the U.S. Census Bureau, Hispanic owned firms are on the rise in the United States. Santa Barbara realized a 48 percent increase, California realized a 38 percent increase, and the United States realized a 44 percent increase in the number of Hispanic owned businesses from 2017 to 2022. 

Not only is the absolute number of Hispanic owned firms increasing, but the proportion of Hispanic owned businesses is also increasing. This growth indicates a significant entrepreneurial spirit within the Hispanic community in the United States. In 2022, according to the US Latino GDP report, the total economic output of Latinos living in the United States was $3.7 trillion. For students considering an entrepreneurial path, this trend represents substantial opportunities.

 

The key take-aways from Dr. Rupert’s discussion with the LBA students were to become financially literate and actively seek scholarships and financial aid opportunities. Understanding concepts like compound interest, loan terms, investment strategies, building credit responsibly, and budgeting tools will empower students to maximize the return on their educational investment. 

Education still remains one of the most powerful tools for economic mobility, especially when approached with intention and financial savvy. By carefully selecting majors with strong earning potential, aggressively pursuing scholarships and grants, understanding the full implications of student debt, and developing robust financial literacy, Hispanic and Latinx students can leverage their education as a catalyst for generational advancement. 

As Professor Rupert aptly concluded, "good choices lead to good outcomes."

 

Some links Dr. Rupert shared with the students:

As well as financial literacy resources we recommend:

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