Being an undergraduate, this is a common question. Many computer science and engineering students are stuck and can't decide if they should continue their education or just go straight to an entry-level job and work their way up. I found this great resource on the Dartmouth Computer Science department website that gives some great advice.
Here's some advice that stood out to me:
• Find out what you are passionate about
Grad school isn't for everyone - so you don't want to be one of those people who hate grad school. Make sure you do something you are passionate about. What projects have you enjoyed in the past? If you hate school, then that might be a sign Grad school might not be for you.
• Talk to professors. Discuss your ideas and goals, and get some advice. Talk to some grad students here and elsewhere. Find out what it's like. Talk to recent alum friends about what they've done, why, and how they like it.
• Do you like inquiry, invention, creativity, exploration, reading, discussion, writing, thinking, teaching, discovering the unknown, etc? Do you like to work with others, or independently? (Both are big aspects of research.) Do you like to tackle unstructured problems, or would you rather work on a task assigned to you? Do you prefer thinking up new ideas and sketching out the basic fundamentals, or do you like to deal with finishing the details on a project?
I'd love to get some feedback from fellow Vinglers and know what you think! Or you could share your journey of choosing grad school over industry or vice versa.