College Degree vs. Skilled Trade: Which Is the Better Choice?
There’s a big debate going on these days over the usefulness of a college degree. With outstanding U.S. student loan debt at around $1.77 trillion and growing, many wonder if a traditional four-year degree is worth the cost. What’s the point, when you are saddled with debt and lucky to find a good-paying job when you’re done?
Not only is it difficult to find a high-paying job as a student graduating today with loads of debt, but you might not even be the right fit for the job. Many employers say that college grads are woefully unprepared for employment and that it’s difficult to find qualified candidates. This is one of the reasons that recent grads are finding it difficult to get work after graduation.
When taking all of this into account, it becomes apparent that perhaps developing marketable skills is more important than just fulfilling the requirements needed to complete a degree.
Associate’s degrees and technical training
Instead of going for a four-year degree, you might actually be better off if you can develop a marketable skill through an associate’s degree and/or technical training. There are many programs available that can help provide you with real-world skills that you can put to work immediately upon completing your program. Indeed, for those with the right skill set, it’s possible to find a high-paying part-time job.
In some cases, the skills you need to land a high-paying part-time job are soft skills, like being personable or conscientious. Other part-time jobs, like becoming a phlebotomist or bookkeeper, require formal training and adherence to a set of industry standards.
Other high-paying jobs that don’t require a four-year degree can be equally rewarding, as long as you develop the right skill set. You can get a reasonably good job as a dental hygienist, radiology technician, web developer, paralegal, or surveyor without getting a “traditional” education. All you need is the right training and the right skills. Many associate’s degrees and technical training programs give you the hands-on practice you need to be immediately ready for the workforce.
Skilled trade vs. college degree: earnings over time
The downside is that, over time, those with bachelor’s degrees tend to surpass the earnings of those with an associate’s degree. At first, the associate’s degree or technical training can pay more. There’s a current trend of those without four-year degrees out-earning those with them because hands-on skills are desirable. However, over a lifetime, those with more traditional four-year degrees can often catch up (and even out-earn) those with associate’s degrees and technical training.
However, it can take decades to close that gap, especially when you consider that those without bachelor’s degrees have much higher debt loads. You can conceivably develop a marketable skill (one that is immediately in demand) for less than $10,000 and be earning $50,000 a year at your first job. Compare that to a four-year degree, where you might spend more than $30,000 and be lucky to be earning $35,000 a year upon graduation.
Developing a marketable skill, such as in a trade, can be a good long-term investment, though. You start out ahead, and if you are able to leverage your earnings into better training and continue to develop desirable skills, you may be able to stay ahead of the curve. Take what you learn and use your skills to start your own business and your potential is limitless.
Even if you decide to get a bachelor’s degree and hope that, long-term, you can produce the income you require, it’s a good idea to develop marketable skills. Make it a point to determine what employers and others are looking for in terms of real-world abilities and applications. If you can add a marketable skill to your education, you should always be worth paying.
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