College Major Surges in Popularity—But Financial Risks Lurk

Psychology has become one of the most popular college majors in recent years, with a significant increase in students choosing to pursue bachelor's degrees in the field. According to data from the American Psychological Association (APA), 140,711 psychology degrees were awarded across the United States in 2023—up from 86,989 in 2004. This upward trend shows no signs of slowing down, driven by a combination of cultural shifts and increased awareness around mental health.

One key factor behind this surge is the growing openness among younger generations when it comes to discussing mental health topics such as anxiety, depression, and trauma. Influenced by social media platforms like TikTok and pop culture portrayals of therapy, many students are drawn to psychology not only for its relevance but also for its perceived alignment with personal growth and societal impact.

However, while the interest in psychology is rising, the financial rewards may not match expectations. According to a 2025 report from the Federal Reserve Bank of New York, psychology graduates typically earn a median wage of $45,000 early in their careers, which increases to about $70,000 by mid-career. These figures suggest that while the field can offer long-term stability, it’s not necessarily known for high starting salaries.

Dr. Ryan Sultan, a double board-certified psychiatrist and founder of Integrative Psych, notes that today’s students are more conscious of the non-financial aspects of their chosen profession. “They’re not entering the field for the money,” he explains. “Rather, they’re motivated by a genuine curiosity about human behavior and a desire to make a difference.”

Despite this passion, many students underestimate the academic rigor and professional requirements involved in becoming a licensed psychologist. As Sultan observes, some are surprised by the heavy emphasis on research during undergraduate studies. Similarly, career strategist Patrice Williams Lindo highlights the importance of having a clear post-graduation plan. “A bachelor’s degree alone rarely leads to a high-paying job in psychology,” she says. “Students should consider further education or explore adjacent fields like UX research, human resources, or public policy if they want to ensure long-term financial stability.”

Real-world experience reinforces these insights. Dr. Azadeh Weber, now a clinical psychologist running her own private practice in California, initially struggled to find work after earning her bachelor’s degree. She spent several years in tech sales before returning to school at age 30, eventually completing her doctorate at 36. Today, she earns approximately $200,000 annually working part-time—a decision she made despite knowing she could have achieved similar earnings in tech, albeit with less flexibility and personal fulfillment.

Weber reflects on what drew her to psychology: “Many people study it because they want to understand themselves and others better.” She finds immense satisfaction in her current role, noting that every client teaches her something valuable.

Ultimately, while psychology may not promise immediate financial success, it continues to attract passionate individuals who value purpose over paycheck. For those considering the major, experts advise careful planning, realistic expectations, and a willingness to invest in further education or alternative career paths.