College vs. Trade School: Which Is Best for Your Child or Grandchild?
For decades, the “college question” felt simple: Work hard, get into a good four-year school, and success would follow. Today, many families are taking a more nuanced view. Rising education costs, student loan balances, changing labor markets, and evolving lifestyles have led many parents and grandparents to ask a different question:
Is a traditional college degree the best financial path, or would a trade school or apprenticeship make more sense?
From a financial planning perspective, there isn’t a single right answer. The better question may be: How does each option fit into the student’s abilities and goals, and the family’s broader financial picture?
Start with Outcomes
It’s easy to frame this decision as “college versus trades,” but that oversimplifies the landscape. There are four-year degrees, two-year programs, certificates, apprenticeships, military pathways, and combinations of all of the above. What matters most is not the label but the likely outcome.
A useful way to approach the conversation is to ask:
What skills will this path develop?
How long does it take before meaningful income begins?
What level of flexibility does it provide if interests change?
How much financial risk does it introduce?
When families view education choices through this lens, the conversation tends to be more practical and less emotionally charged.
Look Beyond Tuition to the Full Cost
One of the most common planning mistakes is focusing only on tuition. In reality, the total cost of education often includes housing, food, transportation, books, supplies, fees, and in some cases, tools or equipment. Just as important is the cost of time: Years spent in school are years not spent earning.
Trade programs and apprenticeships often shine here. Many allow students to begin earning sooner, sometimes while training, which can reduce the need for borrowing. Traditional college programs may take longer, but they can open doors to careers that require formal degrees and offer different long-term earning patterns.
Comparing total cost and time-to-income helps families evaluate trade-offs more clearly.
Debt May Be Part of the Picture, but It’s Not the Full Story
Student loans are often at the center of education discussions, and for good reason. Monthly loan payments can affect cash flow for years, influencing everything from housing decisions to retirement savings.
That said, debt is not inherently good or bad. What matters is whether the debt level makes sense relative to the expected income and lifestyle. A modest loan balance tied to a stable, well-paying career may be manageable. A similar balance paired with uncertain job prospects may not be.
Grandparents are sometimes part of this equation as well, whether through gifts, education savings, or co-signing loans. These decisions deserve careful consideration within the broader family plan.
Income Potential and Job Stability Vary by Path and Person
Broad averages can be misleading. While college graduates tend to earn more over a lifetime on average, many trade professionals earn strong incomes, particularly in fields with high demand and specialized skills.
Individual fit is important:
Does the student enjoy hands-on work or academic study?
Are they comfortable with physical demands or variable schedules?
Do they value geographic flexibility or prefer to stay local?
Careers that align with a person’s strengths and preferences are more likely to be sustainable, which can lead to better financial outcomes over time.
Quality of Life Affects Financial Outcomes
Education decisions aren’t purely financial, but quality of life and finances are closely connected. Work schedules, physical demands, stress levels, and flexibility all influence long-term well-being and earning capacity.
For some, the structure and variety of a skilled trade provide satisfaction and independence. For others, a college-based career offers intellectual engagement, remote-work options, or a broader range of roles over time. The goal is not to judge one path over another, but to choose an option aligned with how the student wants to live and work.
Build Flexibility into the Plan
Few teenagers have a perfectly clear vision of their future, and that’s normal. Education plans that allow for adjustments can reduce financial strain if interests change.
This is where planning tools matter. For example, education savings accounts can often be used more broadly than families realize, including certain vocational programs and apprenticeships. A flexible funding strategy can support multiple paths without locking a family into a single outcome.
How This Fits into Financial Planning
At Parkshore Wealth Management, we help clients think through questions like these as part of their ongoing financial planning process. Education decisions intersect with cash flow, taxes, savings priorities, retirement plans, and other long-term goals. Addressing education in isolation can miss important connections.
As a fee-only, fiduciary financial advisory firm, our role is to help families evaluate options, understand trade-offs, and make decisions that fit their overall financial lives, whether that involves college, trade school, or something in between.
Final Thoughts
Choosing between traditional college and trade schools isn’t about finding the “best” option in the abstract. It’s about finding the path that balances cost, opportunity, lifestyle, and flexibility for a specific student and family.
If you’d like help evaluating education choices within your broader financial plan, we’re always happy to have a conversation. You can schedule a call with Parkshore Wealth Management to discuss how these decisions fit into your long-term planning. We serve clients virtually and from our offices in Granite Bay and Folsom, California, and Lehi and Logan, Utah.
Schedule a complimentary, 15-minute chat with a fee-only, fiduciary financial advisor to discuss your personal situation.
This material was written in collaboration with artificial intelligence (ChatGPT) derived from sources believed to be accurate. This information should not be construed as investment, tax, or legal advice.
Parkshore Wealth Management is an independent, fee-only Registered Investment Advisor with offices in Granite Bay and Folsom, CA, and Lehi and Logan, UT. We partner with financially responsible individuals and families who are eager to take positive steps that will allow them to use their money to build the life they desire. The firm is led by Daniel Andersen, CFP®, a member of NAPFA, the country’s leading professional association of fee-only financial advisors.