Retirement planning isn't just about when you can retire and what kind of a lifestyle you will have after you've left the work force. It can also include choices like - Do I stay in my current profession or can I branch out to pursue my passions?
What are the chances that your current occupation IS something you are passionate about? A lot of people that we grew up with believed that the natural order of transition once you graduate high school was to go to university and get a 4-year degree. But things have changed.
In last week's Free Lunch Podcast, Colin and Greg tackle this subject as it pertains to recent high school graduates and their parents who have been saving to assist them in future studies. We've summed up the facts below - but the full episode can also be heard HERE.
Trade Schools (Vocational Education and Training)
Purpose and Focus:
- Trade schools provide practical, hands-on training for specific trades and technical careers.
- Programs are designed to prepare students directly for the workforce with skills that are in demand.
Program Duration:
- Generally shorter than university programs, ranging from a few months to two years.
Fields of Study:
- Common areas include plumbing, electrical work, carpentry, automotive repair, culinary arts, and healthcare (e.g., dental hygiene, medical assisting).
Credential Types:
- Diplomas, certificates, and apprenticeships are typical credentials awarded.
- Apprenticeships combine classroom instruction with paid on-the-job training.
Cost and Financial Aid:
- Typically less expensive than university programs.
- Financial aid options are available, including grants, loans, and scholarships.
Employment Outcomes:
- High employment rates in specific trades due to direct preparation for the job market.
- Potential for high earnings, especially in trades with strong demand and labor shortages.
Universities
Purpose and Focus:
- Universities offer a broad education with an emphasis on theoretical knowledge, critical thinking, and research skills.
- Programs may prepare students for a wide range of careers or further academic pursuits (e.g., graduate school).
Program Duration:
- Undergraduate degrees (Bachelor’s) typically take three to four years.
- Graduate degrees (Master’s, Ph.D.) can take an additional two to seven years.
Fields of Study:
- Wide range of disciplines, including humanities, social sciences, natural sciences, engineering, business, law, and medicine.
Credential Types:
- Bachelor’s, Master’s, and Doctoral degrees.
- Professional degrees (e.g., JD, MD) for certain fields.
Cost and Financial Aid:
- Generally higher tuition fees compared to trade schools.
- Financial aid options include scholarships, bursaries, grants, loans, and work-study programs.
Employment Outcomes:
- Graduates often pursue careers that require a university degree.
- Potential for higher lifetime earnings, especially in professions requiring advanced degrees.
- Opportunities for academic and professional networking, internships, and research experiences.
Key Differences
Educational Approach:
- Trade schools emphasize practical skills and direct job training.
- Universities focus on theoretical knowledge and broad intellectual development.
Career Paths:
- Trade school graduates typically enter the workforce quickly with specific technical skills.
- University graduates may pursue a wider range of careers, some requiring further education or credentials.
Cost and Duration:
- Trade schools are shorter and less costly.
- Universities require a longer commitment and a larger financial investment.
Flexibility and Advancement:
- Trade school credentials can lead to immediate employment, with opportunities for further certification.
- University degrees offer broader career flexibility and opportunities for advanced study and research.
Decision Factors
Career Goals:
- If you have a clear interest in a specific trade or technical field, trade school may be the best fit.
- If you seek a broader education or a career that requires a degree, a university might be more appropriate.
Time and Financial Investment:
- Consider how much time and money you are willing to invest in your education.
Learning Style:
- Hands-on, practical learners may thrive in trade school.
- Those who enjoy theoretical study and research may prefer university education.
By focusing on these core aspects, you can make an informed decision about pursuing post-secondary education in Canada, whether through a trade school or a university. There is no one size fits all. Let your profession BE your passion.
