Is College Worth the Cost

Our last blog talked about how the job market is just "ok." It's taking longer to get jobs, competition is rising, and wage growth has stalled for many roles. There are also some interesting reports on jobs that are currently in demand, many of which don't require traditional college degrees and come with impressive salaries. The Wall Street Journal just called Gen Z "The Toolbelt Generation" and this means we have to ask the question...Is College Worth the Cost? Here are some things to think about: 

1. College without a strategic end goal has less return on investment (ROI) 

It's more effective to look at the kind of career you want to have BEFORE deciding if the expense of college makes sense. Don't go just to go because the ROI is not there for everyone anymore. For certain fields, college degrees are necessary, but the value of some degrees may be waning a bit because graduates of many degree programs are not emerging as qualified or certified to "do" anything that is in high demand, and there is a lot of competition for entry level roles. If you do major in a field that is more general be prepared for your job search to take a little longer. Use your time in college wisely by gaining as many marketable skills, certifications, and connections as you can for your desired career field. Seek out multiple internship opportunities, look for part-time jobs or volunteer jobs in your desired industry, and join school clubs and networking groups to help ensure that you graduate with as broad of a professional network as possible that you can leverage in a job search. To reduce the length of your search, begin networking and applying to jobs well before you graduate. 

2. Trade jobs are a solid alternative to a traditional college degree

There is high demand, strong earning potential, and good job security in many trade jobs. These roles should not be dismissed as inferior career choices. The number of applicants to vocational training programs has risen significantly in the past year and the number of university and community college applications has dropped. This is part of what has earned Gen Z the nickname "The Toolbelt Generation." With many Gen X and Millennials dismissing trade careers, a skill gap has emerged creating more demand for workers with vocational/trade skills. Careers as electricians, personal trainers, plumbers, radiology technicians, auto mechanics, dental hygienists, welders, construction workers, cosmetologists, HVAC technicians, and many more are in high demand. Vocational training programs are often a fraction of the cost of a 4-year college degree and offer the added benefit of being able to transition faster into a well paying job with less financial burden. If you're not sure if one of these fields is fit for you, find someone doing a similar role to talk with or someone who will let you shadow them on the job for a few hours. Job shadows are a great way to get a realistic sese of what a job will be like. 

3. Lifestyle desires and financial goals should impact career choices at an earlier stage 

It's important to understand the earning potential of your desired career before you choose a major and graduate. Creating a few mock budgets is a great way to help you calculate if the ROI is there for you. Can you pursue a career in your desired field without a traditional college degree, with vocational training, or with a shorter degree program? What would your financial situation look like and would you be better off? If you'll have to take out a student loan to get your degree but you'll be able to live at home during and after college, that's very different financial situation compared to someone who will also have to pay for living expenses during college and immediately after. If you will have a student loan to think about, how soon will you have to start paying that back and what will those payments look like? Do you have to factor in other expenses like rent, a car payment, insurance, and other monthly expenses? Where will you live and how does that impact your salary and cost of living? How much do you need to earn to afford your lifestyle? Is that salary possible in your desired career field for a new graduate, or will you need to supplement your income with a side job or with multiple roommates? What kind of disposable income do you want to have? These are tough questions. Thinking about them earlier can help you make smarter choices about your career and future financial situation. Don't wait until your final semester of college to think about the marketability and earning potential of your career. 

If you have specific career or job search questions, please feel free to reach out. We’re passionate about helping job seekers and career changers find success and we love to share what we know.