According to National Association of Colleges and Employers, the average starting salary for the college Class of 2020 was $55,260
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I am a bit surprised by a 65K sign on bonus. Does this number include relocation? What kind of commitment was attached, and what is the payment schedule for the bonus?
Signing bonus is usually paid all in first year. It isn’t renewable so probably only a portion of it (perhaps 1/3?) should be included in the calculation of graduate starting salary, unless it’s more-or-less guaranteed in subsequent years.
I have also seen signing bonus or relocation packages paid in installments over the first two years with a two-year claw back provision.
I doubt that any company would offer a 65K sign on bonus without some kind of mid-to-long term commitment.
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Each company obviously can do whatever it wants, but compensation policy (including signing bonus) is a response to its competitors. So, the practice may be industry or region specific.
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Well, it seems that I was wrong and that a 65K sign on bonus with only a one-year commitment is a possibility at Facebook. I guess I am out of touch with reality…
Facebook Salary Negotiation Advice Based on Dozens of Negotiations (moonchaser.io)
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Would you financially help out your recent graduates if they are taking gap years before applying to med/grad schools or work but live in high COL area earning entry level start up salaries.
Absolutely. I will help my DD out until the day I die, financially or otherwise.
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In our area it’s not uncommon for kids to live at home for a few years after they graduate to build up a bit of a nest egg. One of our sons lives at home. He pays a small amount of rent, basically to cover food costs and to get used to having to pay something. He’s still on our insurance so he saves there for both medical and dental. The savings can easily be a $2k/month for him.
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It didn’t mean to let them stay home, share food and stay on health insurance until they get a better paying job with good benefits. That’s the least any parent can do.
I meant paying monthly to cover rent and other expenses while they live in a high COL town and work for a small salary or stipend to gain work experience.
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It depends.
If it’s an actual plan-- working at an entry level role which leads to more senior, better paying roles, roommates to keep costs down, taking public transportation-- sure.
If it’s subsidizing a fabulous lifestyle (doorman apartment in NYC and restaurant meals every week) which the nursery school teacher will NEVER be able to afford long term- then no. There’s a reason why neurosurgeons make more money than gym teachers, and if my kid wants a neurosurgeons lifestyle, there needs to be a reality check sooner rather than later.
I know kids living the highlife in pricey apartments in NY, SF, Boston with jobs which don’t pay well and only lead to more of the same, and the parents wonder, “how long will I need to keep this up?” I think “probably forever”. One of my kids explained that in the desired field “everyone” got unpaid internships after college graduation; we explained that he’d need to be the exception. Yup, he got a paying job. Not a huge salary, but enough for a cruddy apartment, the job paid for a monthly pass on public transportation, and he worked there until he got a better paying job-- in the field where allegedly EVEYONE had unpaid internships for several years. In an expensive city.
There is nothing wrong with telling an employer “I would love to work for you, but I need to pay my rent”.
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That would be a ‘no’ for me. They can work and gain work experience while living at home or in a lower COL area.
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In some fields, many career building opportunities are often only available in high COL areas, specially if you aren’t exceptional or get lucky.
Which fields are so area specific?
None is absolutely area specific but some areas offer more opportunities in some fields like NY for finance, Silicone Valley for tech, DC for policy, LA for entertainment etc.
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Other than DC for policy- none of these other fields are underpaid… and as our kids found (two of them did a DC stint) there ARE paying jobs which can support a young new grad if they are willing to have a roommate, don’t need a car (parking AND driving in DC is absurd), and learn to cook/entertain friends at home with beer and a pot of chili vs. $50 bar tab after work every night.
Who needs to subsidize a kid in NY going in to Finance? Those jobs often pay more to a 22/23 year old than their parents make!!!
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And even for policy, kids can go to their state’s capital or get involved in local government to gain experience.
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Totally agree with your post #70. If a kid has a plan with a timeline and milestones where the COL greatly exceeds typical entry level income (barring living in an unsafe area), I would consider subsidizing with an interest free/payment deferred loan that I can always gift back. I am a firm believer that choices have consequences and we should not insulate our kids from such realities. I can see for NYC where a talented kid wants to pursue music/theater/entertainment that I would help with rent (but not for a luxury doorman building). There would be definitely be end dates with milestones, after which if they are not successful, the kid would need to pivot to something more practical in terms of income to COL.
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I appreciate insightful posts helping me evaluate potential possibilities.
Ran across this recently, which compares summer internship pay for tech or quant positions. The highest pay is by Hudson River Trading, a finance company doing business in prop trading. It pays interns $96 per hour, plus provides free food and housing and a $10K signing bonus. The top 11 companies are all financial companies.
The highest paying non-finance company pays $69 per hour. Among the FAANG companies, the highest internship pay is $49 per hour.
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