Unless you have a plan.
By George Adams White
If you taught teenagers about financial literacy, I’m willing to bet many of them would rather go to trade school or learn a skill rather than go to college. The average 4 year college student incurs about 108k of debt to pay tuition, and that is if they only go 4 years. Over %52 of college graduates get jobs that don’t get paid more than minimum wage because they are not learning the skills they need that managers and executives are looking for.
Why You Should Reconsider Going to College and Learn a Skill Instead
$108,584 is the average student loan debt after four years of college, and there is no guarantee of a job upon graduation. With rising tuition costs and an increasingly competitive job market, it’s essential to reevaluate the traditional college path and consider learning a skill instead.
According to Inside Higher Ed, about 52% of recent four-year college graduates are underemployed a year after graduation. This means they are working in jobs that do not require a degree, often earning just above minimum wage. This underemployment rate reflects a significant issue: the investment in a college education does not always translate into relevant or high-paying employment .
Furthermore, an article by Forbes reveals that approximately 58% of managers, directors, and executives in the U.S. believe college graduates are unprepared for the workforce. These employers often prefer to hire more skilled and experienced workers, even if they do not have a degree  . This preference underscores the importance of practical skills and experience in today’s job market.
The job market is evolving rapidly, with a growing emphasis on specific skills and hands-on experience over traditional academic qualifications. In many industries, particularly those related to technology, trades, and healthcare, possessing specialized skills can lead to well-paying jobs without the burden of significant student debt. For example, fields like software development, plumbing, electrical work, and nursing offer lucrative career opportunities with shorter, more affordable training programs.
Moreover, practical experience, such as internships and apprenticeships, significantly enhances employment prospects. Graduates who completed internships during their studies are less likely to be underemployed and more likely to secure jobs that align with their education . These experiences provide valuable industry exposure and networking opportunities, which are crucial for career advancement.
The high cost of college education and the uncertain return on investment make it imperative to consider alternatives. Vocational training and certification programs offer direct pathways to careers in high-demand fields, often with better job security and higher starting salaries than many positions requiring a four-year degree.
The Importance of Financial Literacy
It is crucial to teach financial literacy in high school to help students make informed decisions about their education and career paths. Financial literacy encompasses understanding how to manage money, budget, save, and comprehend the long-term implications of debt.
If students were aware of the financial burdens associated with student loans and the potential challenges of finding a job post-graduation, they might reconsider the traditional college route. Instead, they could focus on building skills that lead directly to employment, reducing the risk of accumulating unsustainable debt.
By incorporating financial literacy into high school curriculums, students would learn to evaluate the costs and benefits of higher education versus vocational training. They would be better equipped to make decisions that align with their financial goals and career aspirations. Financial literacy empowers students to take control of their financial futures, reducing the likelihood of debt-related stress and financial instability.
Essential Skills for Financial Success
In addition to financial literacy, learning specific practical skills is vital for success in today’s job market and personal financial management. Skills such as proficiency in spreadsheets, understanding basic financial and business principles, and knowledge of statistics are invaluable. These skills not only enhance employability but also enable individuals to manage their finances more effectively.
Spreadsheets: Proficiency in using spreadsheet software like Microsoft Excel or Google Sheets is crucial for organizing data, budgeting, and analyzing financial information. These tools are widely used in various industries and can significantly enhance productivity and decision-making abilities.
Basic Financial and Business Skills: Understanding financial concepts such as budgeting, financial planning, and basic accounting is essential. These skills help individuals make informed decisions about spending, saving, and investing, leading to better financial health and stability.
Statistics: Knowledge of statistics is important for interpreting data and making informed decisions based on trends and patterns. This skill is particularly valuable in fields such as business, economics, and technology, where data-driven decision-making is crucial.
Safe Investing and Money Management: Learning about safe investing practices and effective money management strategies is key to building and maintaining wealth. Understanding different investment options, risk management, and the principles of compound interest can help individuals grow their savings and achieve long-term financial goals.
Also you can learn these skill without going to college. There are many online courses (some free)that can teach you about things like. Spreadsheet, statics, and finance to name a few. You can even on your own time learn to be a programer, web developer, data science, and many more.
Did you know you can take the CS50 computer science course from Harvard for free. You can sign up on their website or just go to YouTube and get started. Cs50.harvard.edu
In conclusion, while a college education can provide valuable knowledge and opportunities, it is not the only route to a successful and fulfilling career. Learning a skill and gaining practical experience can lead to immediate employment, financial stability, and career growth without the heavy burden of student loan debt. As the job market continues to prioritize skills and experience, it is essential to weigh the benefits of vocational training and skill acquisition against the traditional college path. Additionally, teaching financial literacy and essential practical skills in high school is vital for equipping students with the knowledge to make informed, financially sound decisions about their futures.
Look if you really want to go to college then go, but please have a plan, and possibly an internship lined up with a company you want to work for before hand. What I want you to realize is having a bachelors degree (unless it’s a degree like nursing or one that gives you a specialized skill) does not guarantee you get a job that pays you well. No matter what you do you need to always find a skill or a niche that is in demand. If you don’t have a good plan then you will be in debt living paycheck to paycheck like so many others.
Now go get some skills, and please learn about financial literacy.
Sources:
• Inside Higher Ed: More than half of recent four-year college grads underemployed https://www.insidehighered.com/news/students/academics/2024/02/22/more-half-recent-four-year-college-grads-underemployed
• Forbes: Why is it so hard for recent college graduates to find a decent job? https://www.forbes.com/sites/jackkelly/2024/02/15/why-is-it-so-hard-for-recent-college-graduates-to-find-a-decent-job/