Thank you, NY Times, for publishing this: In Hard Times, Lured Into Trade School and Debt.
Yup, you’ve seen them before–the advertisements for ITT Tech and Western Culinary Institute (apparently now doing business as Le Cordon Bleu). I’d always wondered about those. At most companies where I’ve worked, there was usually a tech department. However, I don’t think I’ve ever heard of any of our tech guys coming from ITT Tech. Nor have I heard of chefs becoming Jamie Oliver or Kylie Kwong after studying at Western Culinary Institute. Nor have I heard of guys maintaining relationships with what I would consider to be desirable women after taking a pickup class. People think they can pay money to become what they want to be, and schools encourage this thinking with dishonest marketing. What these poor students usually get from these trade schools, according to the article, are big school loans with no career benefits.
I don’t blame people for falling for these gimmicks; it’s an easy scam given the slick commercials these guys run on the air day in and day out. These schools manufacture consent by constantly hitting the general population through the media. It’s sleazy, and it bothers me that no one has exposed them until now. It also bothered me to learn that the American taxpayer is helping foot the bill for this sliminess through Pell grants.
I’ve talked about subsidizing manual labor before, and I think that in general my views on education may be different from most. I think education as a means of financial empowerment is overrated. You can make mad money becoming an electrician or plumber, and you don’t need a degree to do so. I know stockbrokers, realtors, and mortgage brokers without degrees who drive nice cars and own multiple houses. You don’t need a degree to make money, and you can save yourself a lot of money by skipping one. If you compare doctors and plumbers and compare their salaries and expenses, doctors don’t break even until they are in their mid-forties.
Unless you either want to be in a highly technical field where education is a down and dirty requirement–lawyer, judge, engineer, accountant, investment banker, doctor–the main reasons to spend money and time on education are personal fulfillment and your social sphere. Most people who read this blog have a college education, so one could say that there may be some critical thinking skills that either come from college or are selected via the approval of institutions that award degrees. Socially, there exists some kind of commonality that separates college educated people from non-college educated people–if you’re college educated, most likely you will hang out with other college educated people, and vice versa. That in itself may be worth the cost of education.
That being said, I think the two main determinants of financial success or failure in life are effort and desire, much more than education. I was telling a friend yesterday about this article, and I referenced the quote by the executive chef of Bluehour (great restaurant, by the way, even if I can’t afford it):
“When they graduate and come in the kitchen, I tell them, ‘I’m going to treat you like you don’t know anything,’ ” said Kenneth Giambalvo, executive chef at Bluehour, an upscale restaurant in Portland’s Pearl District. “It doesn’t really give them any edge.”
My friend, who is college educated and now works at a bank, worked in a restaurant for six years while growing up, and he said that that is exactly the way it is. “No matter who you are,” he said, “you always start at the bottom.” If you look at great chefs, most of them start at the bottom too. There are no shortcuts, and a 15 month degree isn’t going to make a difference. In the restaurant business, you’re judged only by your effort, your desire, and your results. That’s the way it should be for most professions. Even in the college-oriented professions, effort and desire mean more than just the degree you have.
Don’t get me wrong–I’m not against college. I hope my kids go to college. They’ll meet lifelong friends there, and they’ll get to meet people with cool interests. They’ll also learn critical thinking skills that can help them in life. However, a college education is not the financial panacea that people make it out to be. The key to financial success was, is, and always will be effort and desire. I know people without college educations who are much more fulfilled than some of us who have them. I know people without college educations who are smarter than some of us who have them.
We’re coming into an interesting time when the government is telling us we need more education, that we don’t have the “educated workforce” we need for the 21st century. People like Thomas Friedman tell us that we need more scientists in order to remain competitive.
I don’t think it’s true. Friedman can say what he wants from his cushy job at the Times, but I know engineers and other highly educated people with science degrees who have been unemployed for a very long time. As some of his commenters mention, American CEOs are looking for scientists, but they’re mostly looking overseas where scientists are cheaper to hire. I think the days of “get a science degree and automatically succeed” are over.
Education is good. Your education will determine your social sphere, extracurricular pursuits, etc. But I think our culture is overemphasizing the need for education at this point in time, and dishonest trade schools are taking advantage of people because of this. We don’t need people with more education. We need people with more drive, passion, and a willingness to work hard.
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Persaonally, I think our culture does not speak frankly about money. By that I mean American culture. We don’t talk about it in school, we don’t talk about it at work. There is this still the notion to “keep up with the Joneses.”
There is also the pro hoc ergo propter hoc fallacy that degree = higher paying jobs. How many of us went to school with someone who whined and cried instead of doing the work to get the grade or to get the degree.
Nothing replaces hard work and liking what you do.
Right now, there is an over abundance of medical transcriptionist and soon there will be an over abundance of nurses and CNA’s. What will be the next flavor of the month? Don’t go to law school, the crop graduating this year is under employed.
It seems like money is a dirty subject in a lot of circles. And yet it influences our lives in so many ways. We’d be much happier if more of us understood this force (and I include myself in this group).
I’m reading this book on “bouncing back,” and the author, John Calipari, who is a famous college basketball coach, asks the reader to fill out a questionnaire about life’s purpose, what makes you happy, what money means, etc. The author then shares his own answers. He admits that he used to think about money, but after getting hired and fired by the Nets for big bucks, he doesn’t need to think about it as much anymore. Still, when he talks about his childhood, he talks about his love for sports which eventually helped him become a coach.
This is very much the opposite mentality of someone who signs up for trade schools. If only more people were taught/allowed to find their passion and to work hard at it!
I believe getting a bachelor’s degree in culinary at the Art Institute (famous for their culinary programs) runs upwards to a ridiculous $80k. That’s EIGHTY-THOUSAND. I went to one of these for graphics design, and after a couple years I just couldn’t justify the costs anymore and go the fuck out. I was paying $1500 per class per semester. Even now, I’m saddled with a huge debt ($35k) and I’m not even getting paid like a lawyer or a doctor.
Worst of all, you’d think you’re getting the best out of everything from these schools with the fees but you’re not. The labs have faulty equipment and usually take too long to repair or upgrade. The instructors can be good or crappy, just like any regular college. The school wastes money on frivolous things like leather couches and large flatscreen TVs (this was 8 years ago when those things cost an arm and a leg)in the student lounge. Bathrooms got remodeled twice in the two years I was there. I appreciate having nice facilities, but not when I see my money getting misspent when they could go into better things first. I don’t know how much their teachers get paid, but you know you’re getting jacked when your dean drives a Porsche.
Fact is, none of this shit really matters in the end. You have to start on the bottom like everyone else, degree or no degree. These days when I look for work, it’s my years of job experience that matters. The diploma might as well just be a blank paper with a huge price tag. My education goes on the bottom of my resume, and I doubt any of my interviewers give it more than a quick glance. I truly believe no formal education can beat what you can learn on the job, making real mistakes with real consequences, and interacting with people of all backgrounds.
And I think young people need to be seriously taught what it means to be saddled with a huge debt and how it effects them years after they graduate. Not everyone can become the next Wolfgang Puck.
I read a book a few years ago about who really comprises the millionaires in the US (By Thomas J. Stanley, Ph.D and William D. Danko, Ph.D—sociologists, not economists) called “The Millionaire Next Door”. The books is probably out of date but it still had some interesting discoveries.
Their findings were that high income occupations didn’t necessarily mean wealth. They found a surprisingly high number of self-made millionaires who weren’t doctors or lawyers. In fact, they were mostly in occupations that weren’t very sexy or glamorous–like plumbing. Being wealthy wasn’t about all the material things you owned but what your net assets were and what kind of appreciable assets you had and how you handle it. And most of these folks lived within their means.
Here’s a link to an excerpt:
http://www.nytimes.com/books/first/s/stanley-millionaire.html
And to pick up on what American Girl mentioned, I was talking with a financial advisor who worked at Wells Fargo not too long ago. She told me that this current economic crisis should be a catalyst for teaching kids about financial planning in school. Get them educated starting in elementary school about the value of saving money and the dangers of constantly consuming without saving. She felt that far too many people were uneducated about their personal finances and how to plan for the future and unfortunately, a lot of people left themselves vulnerable when the recession hit.
Leon,
Thanks for sharing!
That’s an awesome example, btw. Graphic artists become great graphic artists by doing art. It’s as easy as that. A school can teach different perspectives and can show you different approaches, and if you go to a good school, it can be valuable, but the art itself exists in the artist.
Kind of like writing. You become a good writer by writing. It can be encouraged, but it can’t really be taught. Like you said, you also learn by making mistakes with real consequences. You learn to manage risk, and you learn to get back up when you’re down.
Starting at the bottom is good because it encourages humility. When people are humble, they learn, and they also work harder.
Are you a full-time graphic artist now?
Mojo,
Good find. I agree with you too. We need to start teaching money. We also need to encourage kids at a young age how to take intelligent risks with money so that they know the basics of running businesses.
Mojo, you are so right.
I’ve told some law students, the ones who do not study, “stop wasting your time, don’t borrow the money for tuition and blow it on chicken tenders and beer. Invest in a gas station and a slurpie machine. You’ll make your money back before you know it.
Well, Americans on the whole seem to be consumer oriented and don’t save for that rainy day. too much money is spent on useless stuff. It doesn’t mean you have to live a life being deprived. You can still splurge on special occasions, just don’t make a habit of it. The irony is, unfortunately, is that while people have been forced into saving in this recession, it doesn’t help the American economy because it IS so consumer driven!
I mean, do 5 year old kids really need a pair of Nike Air Jordans at $80 a pop? Isn’t that more about flaunting status? And who cares about if a first or second grader looks cool?
And as for slacker law school students, you’re right. If they’re not going to work hard, they’re wasting their time and money. Warren Buffett had an interesting take on inherited wealth. He felt that it was his money, not his kids. His kids didn’t work for it but benefited from the comfortable lifestyle Buffett was able to provide. He wanted them to know the value of hard work and to be able to make their own way. Buffett once commented, “I want to give my kids just enough so that they would feel that they could do anything, but not so much that they would feel like doing nothing”.
Jaehwan, you’re absolutely correct. All artists learn by doing. You’re given the tools in college, but the creation is up to you. By no means do I disparage the importance of higher education, but there’s education within the safety of the classroom, and then there’s education with deadlines, a hard ass boss riding your back and money and reputations at stake.
I’ve met quite a few people who did not know what they want in life or expressed any interests in the programs that their parents dumped tens of thousands into. I think it’s a mistake to teach kids that college is the only logical “next step” that they HAVE to go through after high school. Unless they have clear goals in mind, those years could be wasted time, money and unnecessary stress.
I believe it is beneficial for some to enter the work force after high school so they could see the real world from the perspective of someone starting from the bottom. Many graduate from college with a false sense of security and entitlement, believing middle or even upper class living is within their grasp with their diploma in hand.
And oh, I’ve been doing fulltime for some time now, although for the past couple of years I’ve shifted to temp. It’s great having new surroundings and meeting new people every few months, but at the cost of benefits and job security. Not like those two exist anymore even for fulltime workers these days. That’s why despite some hardships, I’m still very grateful; half my friends are currently out of work.
American Girl, MojoRider- yep, yep, and yep. Money management skills is absolutely crucial to survival in this modern world, but it’s astonishing how little kids know until they see their first credit card bill.
I went to a high school with plenty of kids from well-off families, and it was ridiculous how some of their parents pamper them. We’re talking Oakley sunglasses and $300 Polo sweaters and Armani jeans. And why the hell would someone give their kid a brand new Mercedes-Benz as a first car? You know it’ll get dented, scratched, or worse. They treat them like toys to be discarded once their interests run out. I didn’t get my own car until my second year in college. I paid for that clunker and loved it. I know it’s a cliche, but you do get a better appreciation for things you work for.
I remember my parents allowed me 1 credit card during college, and they carefully tracked every expense and made me pay off the bills fully every month. They would give me hell if I even let $100 carry over. I used to find it highly annoying but they taught me very important lessons on how to live within my means. These skills translate to other parts of my life, like knowing how to set realistic goals and count the steps to achieve them, how to keep promises and meet deadlines, etc. It gives you a real sense of independence and control over your own life.
Leon,
Good to hear that you’re making it work!
I think there’s also reason to think that if you don’t do it naturally, then you probably won’t do it well after graduation. In other words, if you don’t ALREADY cook for your friends as a side hobby, you probably won’t make it as a chef. If you don’t already draw to amuse yourself, you probably won’t make it as an artist, graphic or otherwise. If you don’t follow the stock market, you probably won’t make it as a stockbroker.
Which probably means that it’s important for people to find out who they are as they get closer to working age. I know it’s hard to do in a recession, but people need to find passion for work.