The Financial Benefits of Trade Careers vs. University Degrees

Now’s the time to step back and really think about what you want to do. Perhaps one question you might ask is, ‘What are the financial benefits of trade careers compared to university degrees?’ Are you investing wisely in your future with a university degree?

What does a university degree cost?

These days Universities in England, Northern Ireland and Scotland can charge students from England up to £9,250 a year for their undergraduate education. In Wales it’s £9,000 a year.

Student loans are available – designed to cover these costs, but it doesn’t stop there. As well as tuition fees, university students are required to pay for their living expenses. Most students beginning their degree courses this year can expect to run up debts of up to £27,750 for tuition and around £40,000 for living costs. That’s £67,750. Is it worth it?

For some, the answer is yes, but for others it amounts to a huge sum that they will be paying back for most of their working lives. If you’re training to be an accountant or a doctor the investment is probably valid, but for those studying less vocational subjects, in social sciences or the arts for instance, surprisingly few graduates end up working in areas related to their study.

Repayment of the student loan is required once your salary is over £24,990 with small amounts automatically taken from your salary by the Government, every month.

What does vocational training cost?

The cost of vocational training is significantly less. It depends what you do and where you train, but private training centres will charge anything from £5,000 to £10,000 to set you on your career path and most offer payment schemes to help you spread the cost. The other thing is that vocational training courses are shorter, so in a year or so you could be earning a decent salary to help you cover the fees you’ve paid for your training.

Apprenticeships are another option. You won’t earn much but you will get a small salary from day one – and the benefits of on-the job training by an experienced mentor to support your in-college or in-centre learning.

Do university graduates earn more than those working in building services?

The answer is yes, right?  No, it’s a myth. It may once have been the case, but it’s not necessarily true anymore. High earners such as lawyers, doctors, dentists, and computer scientists will earn more – with salaries of between £50,000 to £80,000 after five years.

Don’t take our word for it. Recent figures from the Department of Education show that entry level salaries for those working in the trades start at around £26,000. The average salary for a university graduate is £21,000.

After five years, skilled tradespeople can still earn more. The best paid are gas engineers, with average salaries of around £40,000 a year, but if you become a specialist or run your own business this can rise significantly.

The short answer is, if you’re planning to take a degree course that doesn’t have a professional application and associated career, you’ll be spending a lot of money that you might not get back. Of course, you need to take into account what else a degree course will give you, but if you’re looking at the hard facts, vocational training seems to be better value, in terms of the money you spend out and what you’ll get back.

To find out more about vocational training and apprenticeships, click here.