Your GPA (Grade Point Average) can say a lot about your future. Everyone knows that their GPA can determine if they will get into graduate school. But GPA can also affect their chances in the work force. Employers look at it. So, what does your GPA indicate about your future?

GPA often indicates future earnings. Coursehero.com’s infographic shows that for every 1.0 increase in GPA, annual earnings increasing by about 9%. A low GPA can cost students in salary and bonuses. WallStreetOasis.com did a study on compensation in investment banking. The study was based on voluntary responses from banking firms reporting their pay. Third year analysts with GPAs of 2.8 or less made an average of $65,000. Analysts with GPAs of 2.9-3.1 made an average of $77,700. The analysts who made the most money, with a GPA of 3.8-4, made about $115,700 annually. That’s a difference of $50,700 dollars. Associates, the typical post undergraduate job, also have pay discrepancies according to GPA. The higher the GPA, the more likely the person is to be a hard worker. Intelligent, hard workers will get paid more. GPA is a better predictor of post-graduate earnings than the SAT, major, or the prestige of the institution where someone got their degree.

Hiring managers look at GPA. 70% of hiring managers reported checking GPA in an Uppsala study. They often will only look at applicants with a grade point average that is 3.0 or above. They see GPA as indicator of how smart someone is and how hard they work. A survey done in 2013, found that 67% of companies screened candidates by GPA. Most large companies expect to see your GPA on resumes. GPA matters to them.

What do you do if you have a low GPA? You can  list your GPA in major, or your GPA for the last two years. Go to career fairs and sell yourself as an employee. Be honest about your grades, and explain why you screwed up your freshman year. Companies also like people who can juggle responsibilities. If you worked full time, were heavily involved on campus, and got decent grades, they are more likely to hire you.

Grades matter. Your GPA counts a lot towards your future. The advice here is that you are still in college. Study more if your GPA is low. Take advantage of tutoring or the writing center. Instead of hanging out with friends all the time, take a night off and dedicate it to school. There are a lot of fixes out there. Your GPA can get you into that graduate school or help you get that job. GPA matters.