Is a trade skill more valuable than a university degree today?

Question

Rich Dad · Accepted Answer

If I had to choose between a $100,000 diploma and a $100,000 skill, I’ll take the skill every single time.
Let’s get something straight: income follows scarcity, not status. Right now, plumbers, electricians, welders, HVAC techs, and elevator mechanics are printing money because fewer young people are entering trades. In the U.S., the average electrician earns $60,000–$90,000 a year, and master electricians or business owners can clear $150,000+. Meanwhile, the average college graduate walks out with around $30,000 in student debt and earns roughly $55,000 starting out — often in a field unrelated to their degree. One builds earning power immediately; the other often starts in a financial hole.
Here’s the real kicker: a trade isn’t just a job — it’s a gateway to ownership. A plumber making $85,000 working for someone else can start a small service company, hire two apprentices, and turn that into a $500,000–$1 million revenue operation within 5–7 years. I’ve seen HVAC business owners net $250,000 annually with a small team. Compare that to a corporate employee waiting 10 years for a promotion to crack six figures. The trade gives you a monetizable, portable asset — your skill — that can evolve into a business.
But let’s be honest: not all degrees are equal. If you’re becoming a surgeon, software engineer, or specialized financial analyst, a university degree can be a high-ROI investment. A computer science grad from a strong program can earn $120,000+ within a few years. That’s leverage. However, degrees in oversaturated fields with limited earning upside? That’s expensive signaling.
There’s also risk resilience. During economic downturns, companies lay off marketing associates and middle managers quickly. But when pipes burst or power goes out, tradespeople are essential. In 2020, while white-collar layoffs surged, skilled trades demand rebounded rapidly because infrastructure and maintenance don’t pause.
Now here’s the strategic play: don’t think “trade vs degree.” Think cash flow first, leverage second. You could learn a trade by 22, earn $80,000, invest $20,000 a year into index funds or real estate at 8% average returns, and build a seven-figure portfolio by your mid-40s. The typical college grad often doesn’t start investing seriously until 28 or 30.
The question isn’t prestige — it’s leverage, speed, and control. If your degree doesn’t dramatically multiply your earning power, a trade may outperform it financially.
Money doesn’t care about your diploma — it cares about your value in the marketplace.

Poor Dad · Answer

A steady paycheck may not be glamorous, but it sleeps better at night.
Trades are valuable — no argument there — but you must think about long-term stability and physical sustainability. Many trade jobs are physically demanding. Electricians, roofers, and construction workers often face injury risks and wear-and-tear on their bodies. What happens at 55 if your knees or back give out? A university degree often leads to less physically strenuous roles, extending your earning years into your 60s or even 70s.
Statistically, college graduates still earn more over a lifetime. According to U.S. Bureau of Labor data, bachelor’s degree holders earn roughly $1 million more over a 40-year career compared to high school graduates. Unemployment rates are also lower — about 2% for degree holders versus 3–4% for those without degrees. That gap may seem small, but during recessions, it matters. Stability compounds just like money does.
And not all degrees lead to debt disasters. If you attend a state university, keep costs under control, and choose a practical field — accounting, nursing, engineering, education — you can graduate with manageable debt and enter structured career ladders. A nurse, for example, can earn $75,000–$100,000 with benefits, overtime, and pension options. Engineers often start at $70,000–$80,000 and scale upward. These are predictable, insurable careers.
Trades also come with business risk if you try to “scale.” Owning a plumbing company means handling insurance, liability, payroll taxes, lawsuits, slow-paying clients, and economic downturns. Entrepreneurship is not for everyone. Many skilled workers prefer stable employment, but unionized or corporate trade jobs may cap earnings.
There’s also flexibility. A degree doesn’t just train you for one skill — it can open multiple doors. Someone with a business degree can pivot into finance, marketing, operations, or management. That optionality can be crucial over a 30–40 year career as industries evolve.
So the real question is: what suits your temperament? If you value physical work, hands-on skills, and independence, a trade can be rewarding. If you prefer structured environments, predictable benefits, and longer-term physical sustainability, a degree may be the wiser path.
Security isn’t exciting — but it keeps the lights on when trends change.

Is a trade skill more valuable than a university degree today?

Rich Dad Says

Poor Dad Says

The Bottom Line

Whose advice would you follow?

Share this debate

What do you think? (0)

More debates