College is changing. Well, the thinking around having a 4-year degree is changing.
Recently, I was talking to my son’s friend about what she plans to do after graduating high school. She has a variety of interests and ideas, from dentistry to cosmetology to real estate. Because she isn’t certain just yet, she is considering attending college and majoring in business as a “back up” plan.
This led me to wonder – why would you spend over $100K on a “back up” plan? What if you put that money toward your primary mission in life?
A high school counselor I spoke with told me about meetings where he knew the student wasn’t interested in college but the parents were adamant that their child would attend. This idea that you need a college degree is common among high schoolers, and their parents. It comes from an era when attending college was a recipe for success, and majoring in business meant you could succeed just about anywhere.
But that’s not the case anymore. With the rising cost of higher education and the numerous opportunities available for young people, shouldn’t college be a career advancement tool instead of a fallback position?
The Myth of the Four-Year College
There is so much pressure on high school graduates to commit to a career path at a very young age. At age 16, one of my sons wanted to be a circuit court judge. Now, he’s graduating from college with a degree in Political Science. And he wants to write music and open a recording studio.
What I want parents to know is that teenagers are uncertain about their career path. Additionally, college is not the only way forward for a recent graduate. If your child is not sure about their direction, maybe they need to take some time off school and work. They will likely find that knowing what they don’t want to do will help them hone in on what they are meant to do.
Sometimes, the right school choice is years down the road, or not at all. But using college as a backup plan instead of a clear and motivated way forward is a very expensive gamble. Focusing on what your child likes and what they want to do can lead them to a career in an unconventional manner.
If we look at 100 high school graduates, on average:
- 40 do not go to college – they go directly into the workforce or the military.
- 15 will attend a 2-year technical or trade school.
- 45 will attend a 4-year college. Of those:
- 10 will drop out.
- 23 will graduate in 4 years
- 12 will take between 4-6 years to finish college.
Given these numbers, college just isn’t for everyone.
The Changing Landscape of Education
Attending college is not a decision that should be made lightly. It’s not a backup plan; it’s a major financial commitment. Community college, trade school, joining the military and entering the workforce are all viable options. For some students, these are a much better fit than the traditional 4-year college education.
Tuition rates have jumped significantly over the past two decades, for both private and public universities. That’s a hefty expense for a student who is unsure of what career path they want to pursue. For college students who graduate with debt, beginning their financial life can be daunting, particularly if they are not excited about their prospective job.
There have been fewer students attending college in recent years. Enrollment peaked in 2010 and has been on a steady decline, falling by almost 15 percent, some of which is driven by reduced population. Experts expect those numbers to continue to fall as students choose other avenues.
Options
To answer my earlier question, high school graduates don’t put money toward their life’s goals because they don’t have a clear picture of what that is. Most of them don’t have enough experience to know what their direction should be. And that’s OK. Some people can see their future clearly. For others, they will find clarity later in life.
We are seeing trade school enrollment surging, and there has been a big jump in the number of students seeking professional certificates. Apprenticeships are coming into vogue as well. The reality is that you can learn almost anything on the internet, so students can focus on very specific niche jobs. Employers are also putting less emphasis on the 4 year degree, and paying closer attention to practical experience.
It’s perfectly normal for a teenager to be unsure of their next steps after graduation, but there are so many options beyond the traditional 4-year college degree. Encourage your student to weigh all their options and take time before making a future commitment. Their career and their wallet will thank you.
Pamela J. Horack, CFP® of Pathfinder Planning LLC provides personal financial planning advice and investment management for a simple fee to young adults and working families in North and South Carolina through group classes, one-on-one planning, and ongoing advice.