Trade School vs. College: Which Offers Better ROI for Your Teen?

Choosing the next step after high school is a big decision, and as a parent, you want the best for your teen. With college costs soaring and student debt in the news, many parents are asking, “Is trade school worth it?” and comparing college vs. vocational school outcomes. In other words, which path offers a better ROI (return on investment) for your teen’s future? This article will break down the costs, salaries, debt, and job prospects for trade schools versus four-year colleges, using national data in a casual, parent-friendly way.

Tuition and Training Costs: Trade School Is Easier on the Wallet

One of the most immediate differences between trade school and college is the price tag. Trade schools (also known as vocational schools) are typically far more affordable than a traditional four-year college. Consider these average tuition figures:

Four-year public college (in-state): Around $9,800 per year in tuition (about $39,000 for four years, excluding room and board). Add in housing, meals, textbooks, etc., and the total cost climbs even higher.
Trade school program: Roughly $5,000–$15,000 total for the entire program, depending on the trade and program length. Many trade programs last 6–24 months, so you pay for fewer total years of schooling.

In short, the average total cost for trade schools ranges from ~$3,800 to $16,000, which is substantially lower than the cost of a four-year college. Even public universities that seem cheaper yearly can end up costing more over four years once you factor in extra expenses and interest on any loans. For a family budget, the lower upfront cost of trade school can be a huge relief.

Time to Graduate and Enter the Workforce

Another factor in ROI is how quickly your teen can finish their education and start earning money. Trade school programs are generally much shorter than college degrees:

Trade school: Many programs take less than 2 years, and some can be completed in under a year for certain trades. This means a student could finish high school, do a one-year certification, and start working by age 19 or 20.
College: A typical bachelor’s degree takes 4 years of full-time study. In reality, some students take 5-6 years to graduate if they change majors or attend part-time.

The benefit of the shorter trade school timeline is that graduates can enter the workforce sooner. Those extra years of earning can boost ROI. In fact, by the time their peers are graduating from a four-year college, a trade school grad could already be working toward their first promotion in the field. Starting a career earlier not only means earning income sooner but also gaining work experience and avoiding additional years of tuition. In ROI terms, a shorter education means lower “opportunity cost” – your teen spends less time out of the workforce.

Average Starting Salaries and Earning Potential

Of course, ROI isn’t just about how much you spend – it’s also about how much you earn afterward. A common assumption is that college graduates make much more money than trade school graduates. It’s true that certain high-paying careers (like engineering, computer science, etc) require a bachelor’s degree and come with lucrative salaries. However, many skilled trades offer competitive salaries that can rival those of some college graduates, especially when you account for the shorter training period and lower debt.

To compare, let’s look at some national data on earnings:

College graduates: For recent grads with a bachelor’s degree, the average starting salary is around $60,000–$65,000 a year (this varies by major; STEM fields tend to be higher, while some majors are lower). With experience or in high-demand fields, bachelor’s degree holders can see higher median salaries over time (the overall median for jobs requiring a bachelor’s is about $92K).
Trade school graduates: Salaries vary by trade, but many are solidly in the middle-class range. For example, electricians earn a median of about $61,600 per year, and HVAC (heating/air conditioning) technicians around $57,300 annually. Welders have a median wage of nearly $49,000, and plumbers/pipefitters average about $61,500 a year. These figures are median incomes, meaning experienced workers in those trades nationwide – entry-level wages might be a bit lower. Still, many tradespeople see their pay increase as they gain skills.

Importantly, trade jobs often come with opportunities for overtime or even self-employment. A skilled electrician or plumber can also build their own business over time. This entrepreneurial route can increase earning potential beyond the base salary.

It’s worth noting that not all college degrees guarantee high salaries. There’s a wide range of outcomes: an engineer might start at $80K+, whereas a graduate in a less in-demand field might start at $35K. That’s why ROI should be considered on a case-by-case basis. A key takeaway is that skilled trades careers can provide comfortable incomes without four-year degrees, which boosts their return on investment when combined with lower educational costs.

Student Debt: Comparing the Burden

No parent wants their child drowning in student loans. Here, the contrast between college and trade school can be stark. Because trade school is cheaper and shorter, students often need to borrow far less (if at all) compared to a college student.

Consider these national averages:

Bachelor’s degree graduates: Students who attend public universities borrow an average of about $31,960 in student loans to earn a bachelor’s. For those at private colleges, the debt can be even higher. That means your teen could be carrying tens of thousands of dollars in debt into their 20s.
Trade school graduates: Many trade programs cost so little that students can pay as they go or with minimal loans. For example, one analysis found this debt comparison: a typical public university student’s debt (~$32K) is nearly four times the average debt of a trade school graduate, which in one case was around $8,000. Some trade students graduate debt-free, especially if they attend a community college program, secure scholarships, or work part-time while in school.

The lighter debt load from trade school means less financial stress when starting a career. Instead of spending years making hefty loan payments, trade school grads can use their earnings to save for a house, invest, or simply enjoy a better quality of life. On the other hand, many college grads face monthly student loan bills that can eat into their early career paychecks.

It’s also notable that the financial return from a bachelor’s degree has been softening in recent years, while tuition and debt rise. In other words, taking on $30K+ in loans doesn’t always guarantee a huge income bump anymore, especially if the degree doesn’t lead to a high-paying field. This is one reason more families are looking at trade school as a viable, financially sensible option.

Job Stability and Market Demand

A crucial part of ROI is whether the education leads to stable employment. Here, trade jobs shine in today’s economy. The United States is currently facing an unprecedented shortage of skilled trade workers. Plumbers, electricians, HVAC techs, truck drivers, and many other trades are in high demand as older workers retire and not enough new workers replace them. This high demand translates into strong job security and plenty of openings for trade school grads.

For instance, the job growth projections for many trades are well above average. The Bureau of Labor Statistics projects that employment of electricians will grow 11% from 2023 to 2033, and HVAC mechanics by about 9% in the same period – both much faster than the average growth rate for all occupations (~4%). Similarly, the construction and manufacturing trades are seeing thousands of job openings every year in the coming decade. In practical terms, if your teen becomes a qualified electrician, welder, or dental hygienist (to name a few examples), they’re entering a field hungry for talent. That often means better starting opportunities, and sometimes higher wages due to labor shortages.

White-collar (office) jobs, by contrast, can be a mixed bag in terms of stability. Some professional fields are growing quickly (for example, software development and SaaS companies), but other white-collar job markets are oversaturated with graduates. It’s not unheard of for college grads to struggle to find a job in their field, especially if they chose a major with fewer direct job prospects. In fact, unlike certain white-collar fields where too many applicants chase too few jobs, skilled trades offer a landscape ripe with opportunities. Another advantage for trades is that many of these jobs cannot be easily outsourced or automated – you can’t fix a leaky pipe or wire a house via the internet from overseas, and robots aren’t about to replace electricians on job sites. Meanwhile, some entry-level office jobs are vulnerable to outsourcing or even automation (think about how AI is starting to handle tasks in accounting, data analysis, etc.). This means trades can offer a reliable career path with resilience in the face of economic shifts.

All that said, job stability also comes down to the individual and the economy: a recession can slow down construction work (impacting trades), whereas certain degree-holders might have an edge in flexibility to switch careers. But overall, in today’s market, the skilled trades are often described as having strong long-term demand and solid job security – a big plus for ROI, since consistent employment is key to earning back that education investment.

ROI Comparison: Which Path Pays Off More?

Now for the big question: Trade school vs college ROI – which is better? The answer will depend on your teen’s chosen field and goals, but we can weigh the general pros and cons:

Trade School ROI Advantages: A trade program costs much less and gets your teen into a paycheck-earning job faster, meaning the “payback period” on the education is shorter. For example, a vocational certificate might cost $10K and lead to a $45K/year job – that investment can pay for itself within the first year or two of working. There’s growing evidence that technical trade certificates can offer a higher lifetime payoff than many bachelor’s degrees. One comprehensive 2024 analysis found that undergraduate certificates in technical trades tend to have a stronger ROI than the median bachelor’s degree. This is because the combo of low cost and decent salary gives a high return percentage. Additionally, if your teen is motivated, they can often increase their earnings with experience, overtime, or starting their own business in a trade.
College ROI Advantages: On average, college grads do have higher earnings potential over a lifetime, especially in high-paying fields. Certain careers (engineering, tech, finance, medicine, etc.) far out-earn trade jobs in the long run, which can lead to a high ROI if your teen completes the degree in a good field without too much debt. For instance, the median ROI for a bachelor’s degree program is estimated around $160,000 extra lifetime earnings, but this varies wildly by major. The top degrees (engineering, computer science, nursing, etc.) can yield $500,000+ in ROI over a lifetime. So, for a teen who is passionate about a profession that requires a degree (like becoming a teacher, accountant, or scientist), college is still a worthy investment, especially if they can minimize debt (e.g., choosing in-state tuition or scholarships).

The Catch: ROI isn’t guaranteed for every college degree. A plumber’s or electrician’s certificate almost always has a positive ROI because of low education costs and steady earnings. The key is aligning education with a viable career.

For your teen, think about their interests and strengths. If they love working with their hands, fixing things, or have an entrepreneurial spark, a trade like electrician, mechanic, dental hygienist, or coder (yes, there are coding “bootcamp” trade schools too) could give them a quick path to a stable, good-paying job without the debt. On the other hand, if your teen dreams of being an engineer, lawyer, or another profession that requires a degree, then college is the route – just plan carefully to maximize the ROI (choose a major wisely, control costs, consider state schools or community college transfers, etc.).

Conclusion: Making the Choice – Is Trade School Worth It?

So, is trade school worth it for your teen? For many students, yes – trade school can be an excellent investment. It offers a lower-cost, lower-debt path to a respectable career, and often leads to stable jobs that are in high demand. The ROI in pure financial terms often favors trade school, particularly when comparing against lower-paying college majors or when a four-year degree would mean significant debt. Your teen could start earning a decent salary in a trade in their early twenties, all while their college-bound peers might still be in school (and accumulating loans).

However, the decision also depends on your teen’s passion and career goals. ROI isn’t just dollars – it’s also about personal fulfillment. A college education might be worth it if it’s the key to a career your teen truly wants, and that career has solid job prospects. Independent college life experiences are also invaluable. As a parent, you can help your teen research both options: look at tuition vs. likely salary in their field of interest, consider job market trends, and even talk to people working in those industries.

In the end, the trade school vs. college ROI debate comes down to finding the best fit for your teen. Encourage them to consider both the numbers and what type of work will make them happy.

By weighing tuition costs, time to employment, starting salaries, debt loads, and job stability, you can make an informed decision together. Whether your teen dons a cap and gown or a hard hat and tool belt, the goal is the same: a rewarding career and a secure financial future. And knowing the ROI of each path will help ensure your family chooses the option that offers the best payoff for your teen’s dreams and your hard-earned dollars.