Trade Schools and Apprenticeships

One factor to keep in mind when considering education paths is the opportunity cost of unearned income in college. Consider these two students, both at 18:

Quinn (College): -$80,000 net worth at age 22 because he:

• Paid $20,000 per year for tuition and housing (x4 years)
• Had $0 income during school

Alex (Apprenticeship): +$160,000 in earned income at age 22 because he:

• Had $0 in costs (training paid by the employer)
• Earned $40,000 in income per year while training

The difference between Quinn and Alex is not just the $80,000 in tuition expenses. By age 22, the apprentice will be $240,000 ahead, including both earned income and avoided tuition costs.

Skilled labor earnings are often underestimated. Roles such as electricians, power line technicians, elevator mechanics, and specialized welders can earn $100,000+ with experience. These jobs also offer strong job security because they require hands-on skills that are difficult to automate.

Before committing to an expensive college degree, consider researching local trade schools and union apprenticeships. Many of them will offer paid training, low or no tuition, and great employment opportunities.