Recently, I talked with a friend who works with high school students as a college counselor. Many students don’t want to go to college, can’t afford it, or don’t want the financial burden of student loan debt. She asked me for help on how to talk to the students about full-time job benefits, budgeting, and job search opportunities if they don’t have a college degree. I offered to put my thoughts in writing so she could share them with the students and other young adults to help them think through the situation.
You are not alone. Many young adults and high school graduates have no idea what they want to do for a career. I have a separate post that might help you (7 Steps to Figure Out What You Want to Do for a Career.)
If you are in your senior year and contemplating what’s next, you need to take ownership of the process. What are the first steps of adulting? I am not giving you answers. I am giving you the questions with a list of things you need to research and consider before making this major life decision. If you are still in high school, try talking to your guidance counselors or college counselors too. They will have a wealth of helpful information.
Unless you are someone like Mark Zuckerberg or Bill Gates, high-paying jobs typically require a university degree. Some employers require a degree to get in the door. It’s not just about getting in the door. It’s also about the earning potential in years to come.
In this case, you know you are not interested in a college education. Ok. So, how do know you are making the right choice? What are the other options?
Options to a Four-Year Degree
I get it. The college experience is not for everyone and it’s not always affordable. Many people rely on student loans to get their four-year degree. Some take more than four years to graduate! And having a bachelor’s degree and a pile of student debt doesn’t guarantee that you can find a job in your field. Many college students aren’t able to find a job in their area of study.
Before you finalize your decision, I want to help you think through your options for higher education. Earning your high school diploma is a start. But realistically, what skills do you have? Eventually, you are going to need a job. There are a few alternatives to college that will help you gain the skills needed for a higher-paying job.
Trade schools and vocational training. Trade schools provide training on a specific profession, trade, or craft. These might include automotive, electrical, construction, or IT. The technical school path may only take another year of training and you can end up with a job starting at $30 - $60,000 a year.
I spoke with an electrician working on my kitchen. He started out doing demo (demolition) work for his company. He paid attention and expressed interest in learning more. His company trained him on some of the basic electrical work and now he is going to a vocational school.
Community colleges. If you are not ready to go away to college or you are not sure what you want to study and don’t want to waste the money, you might consider taking a few classes at a local community college. It’s much more affordable and many of the courses will transfer to a university if you change your mind in the future. They typically have a flexible schedule so you can work and go to school. Take advantage of the career center and job fairs offered on campus to help you find direction.
Online courses. Websites like Coursera offer practical certifications in areas like cybersecurity, social media, and computer science. They offer both free and paid courses. Coursera even offers Google Career Certificates.
Gap year. The first time I heard this term was when Malia Obama took a gap year. The idea is to work, travel, or volunteer for a year before starting college. Some people need a mental break from school burnout. So, maybe you don’t want to college right now. You can take this extra time to work, gain some practical skills, and explore different career choices. Then, possibly, reconsider going to college.
I took a gap year off after college to work on a cruise ship! I traveled to more places in a year than most people do in their lifetime. I served the meals, washed dishes, and did the laundry. I learned about gourmet food and wine. I paid off one of my student loans and came home with savings.
You are going to be working for the next 40+ years! It’s okay to take some time while you are young to figure things out. And apparently, there is a Gap Year Association too!
Let’s Talk About Money
Let’s think through some important details about how you will earn money and what other benefits employers may offer.
Hourly vs. Salary
Eventually, you will be out on your own in the real world. You will have a job and need to pay your bills. Some jobs pay hourly. Some offer an annual salary. Having an understanding of how you will be paid is important as you consider your career path.
Hourly
If you are working as a high school student, you are very likely paid an hourly wage. You fill out some sort of time card or log in to a computer system with your employee to log your hours. The minimum wage in Missouri is $12.30/hour. So, if you work 8 hours you earn 8 x $12 = $98.40.
If you work a minimum wage job, 40 hours a week, 52 weeks in the year, you would earn $12.30 x 40 x 52 = $25,584 annually.
If you show up 30 minutes late for your shift, you don’t get paid for those 30 minutes. If you work 30 minutes late, you will get paid for those 30 minutes. In some cases, you may earn a higher, overtime wage of 1.5 times your hourly rate.
Salary
If you are a salaried employee, you are paid the same amount each pay period. This is typically based on a 40-hour work week. If you have to leave early for a doctor’s appointment, or you work late to finish a project, you still earn the same amount. In many cases, salaried employees work 40-60+ hours a week! I know I have many times throughout my career.
Full-Time vs. Part-Time
As you begin to look for a job after high school, it’s important to understand the difference between full-time and part-time hours and benefits. You will want to ask questions to clarify what kind of job you are applying for and what pay and benefits are included.
A full-time employee works at least an average of 30 hours a week or 130 hours a month. At that point, there may be a whole list of additional benefits included. I will explain some of these in the next section. A part-time job is going to offer you more flexibility with your schedule but also likely limit your hours to less than 30 per week.
Some companies will limit the hours of some employees as a strategy to manage expenses and avoid having to offer benefits like healthcare insurance.
This is likely the situation when you see low-income families with adults working two or three jobs to pay their bills but never get ahead. They get stuck in hourly jobs with no benefits and never catch a break. They take a few shifts in a restaurant and work a few days in a store and end up working over 40 hours a week but they don’t receive any other benefits.
Gig Worker
Gig work is not a traditional job. You are your own boss and you set your own hours. Similar to part-time work, if you don’t work, you don’t get paid. Uber, Lyft, and Instacart are three popular examples but they require you to have a car. They also have minimum age requirements so they may not be options for a few years.
Employment Benefits Packages
You may be surprised to learn that employers offer their employees more than just a paycheck. The average benefits package is over 30% of an employee’s compensation. So, if your salary is $30,000 a year, the additional benefits package has a value of $10,000. These can be huge! Gamechangers for how nice of a life you can have!
This may be the most important section of this article.
Your earning potential as a college graduate may be significantly higher than a high school graduate. A big part of that is due to the extra benefits offered. These are the kinds of things that will
Here are a few examples of employment benefits for full-time employees:
Paid Holidays. Employers will pay you for 8-10 holidays like Memorial Day, Thanksgiving, and Christmas.
Paid Time Off (PTO). Employers will pay for time off that includes sick and vacation days. This might start at 10-15 days and increase with years of service.
Health Insurance. Employers will offer healthcare coverage for you and your children. The cost for this varies. Some employers pay 100% of the costs and others require the employee to pay a percentage. Employees benefit from being part of a group plan and receive discounts on prescriptions and coverage for office visits, urgent care, treatments, and more. This is one of the most important benefits to look for. If your employer doesn’t pay for health insurance and if you aren’t covered by your parents, this may cost you over $300+ a month!
Dental and Vision. This benefit is similar to health insurance but applies to your dentist visits and your eye doctor. Dental insurance may cover two cleanings a year and pay for part of any fillings, crowns, or root canals. Vision insurance may get you discounts on contacts or prescription glasses.
Retirement Plans. In my experience as a manager, young people don’t always value this benefit as much as they should. It’s hard to save money for when you are in your 60s when you are trying to pay your bills today. Employers offer you a way to begin saving for your retirement. In many cases, your employer will match a percentage of the money you invest. If you invest $1, they may add $.50 to your account.
Tuition Reimbursement. If you decide later that you want to take college courses, this is an important benefit to look for. Many employers will reimburse your tuition fees after course completion. Some require a minimum grade as well. It’s up to the employer how much they choose to reimburse and you will have to pay the upfront costs.
These are just a few examples of the kinds of benefits employers offer to full-time workers. They don’t only apply to skilled workers. Even McDonald’s offers these kinds of benefits. Employers pay a portion of these costs. If you choose to opt-in to these benefits, you typically have to pay a portion as well. This is taken out of your paycheck.
How Much Money Do You Need/Want?
Your expenses will vary depending on your family and living situation. If you are living at home and your parents still provide meals, clothes, gas, etc. you still need to prepare to eventually move out on your own. So let’s look at what your current habits are and estimate how much all of that costs.
Where do you live?
Are you living with your parents or a guardian? Some charge rent after you turn 18. Some don’t. Some parents need your help paying bills. Some have a rule that you move out at 18. This situation is much easier if you can live rent-free for a few years. If not, you need to factor in rent when discussing a budget.
If you need to find a place of your own, can you find a roommate? I did a quick search in St. Louis. Studios start at $800 and a one-bedroom starts at $1000. If you can find a roommate, you could split a two-bedroom for $1,200.
For perspective, if you have a job making minimum wage, $12 an hour, how many hours do you need to work just to pay rent? You do the math. And don’t forget about taxes! More on that later.
What are your expenses?
These numbers below are very rough estimates. You may never go out to eat or get a manicure. You may also buy a whole new wardrobe with every change of the season. These are thought-starters for you to evaluate your lifestyle and spending habits.
Phone: Starting with the device we are all addicted to! Even before food or clothing. Do you have any idea how much your own phone plan would be? You might be able to stay on your family plan for a few years. I’ve seen plans as low as $25 a month.
Utilities: This is a category a lot of kids may overlook or not even realize is a thing! Utilities are the services that your apartment or home needs. These include electricity, gas, water, sewer, trash, and internet. Some apartments will include all or some of these. Electric and gas bills will fluctuate with the weather. Your air-conditioning runs off electric so it may spike in the summer. This makes budgeting a little more challenging.
Estimate $100 a month.
Meals: Keep track of how much money you spend going out to eat for a week including your $7 special venti coffee. All three meals and snacks. Then multiply that by four for a monthly average.
7 days x $20 a day = $140/week x 4 weeks in a month = $560 a month. You can really cut this down if you eat at home!
Groceries: Make a list of the food you eat at home in a week. Then do a little research in the grocery store or on Instacart/Target/Walmart app so you can see individual prices. How many pizza rolls do you eat in a week? A bag of 50 is $5.99 at Target. So, again, if you are making $12 an hour in your job, you have to work for half an hour to pay for that bag.
7 days x $10 a day = $70 a week x 4 weeks = $280 a month.
Transportation: Do you have your own car? Is it paid off? If not, what is your payment? Do you pay for your own insurance? What about gas, oil changes, and maintenance? How old are your tires? New tires can be $150+ each!
If you don’t own a car, do you rely on public transportation? If so, that will affect the kind of job and location of the work.
Estimate $500
Personal Care: This category might include things like your gym membership, spa/salon visits (hair and nails), cosmetics, and toiletries. If your parents still pay for these things, do your research to understand the costs.
Estimate $100
Clothing: How often do you go shopping for new clothes? Do you know how much your Tori Burch sandals cost? Or the Air Jordans? Try to get an estimate on monthly spending for clothes, underwear, coats, shoes, purses, accessories, jewelry, etc.
Estimate $150
Entertainment: Add up your streaming services, concert and sports tickets, books, crafts, and cocktails.
Estimate $200
I will stop there to keep things simple. Other big categories you will need to consider include healthcare insurance and healthcare costs, household items like furniture and dishwashing soap, travel, and savings.
Let’s do a rough total:
Rent $1000
Phone $25
Utilities $100
Meals $560
Groceries $280
Transportation $500
Personal Care $100
Clothing $150
Entertainment $200
Total $2,915 per month
Total Net (after taxes) $34,980
Total Gross (before taxes estimate) $46,640*
These may look like big numbers and there is definitely room to tighten the spending on a few of these categories like entertainment, clothing, and personal care.
*I will talk about taxes below. These numbers are very rough estimates on taxes. They vary on your city and state.
The reality is that you are young and don’t have any valuable skills yet. This will limit earning potential. And you will need to limit your spending.
I want to show you how expensive things can be, especially if your parents have been paying for all your expenses. This process should help you figure out a starting salary goal so you can also figure out what kind of job you can work towards to make decent money. You can still have a happy life driving a used car, shopping at thrift stores, and making coffee at home!
You may have to start with a minimum-wage job as a student or a high school graduate. As mentioned above, that’s $12.30/hour in Missouri.
40 hours a week x $12.30/hour x 52 weeks in a year = $25,584 Gross.
When you run these numbers for a potential minimum-wage salary, compared to what your expenses might be, you can see the gap. We need to figure out how to help you get a higher-paying job without a four-year degree.
Before we move on, let’s talk about taxes and the difference between “net” and “gross” income.
Why is my paycheck so much smaller than I expected?
If you have already started working and received a paycheck, you will quickly notice that you don’t take home 100% of what you earn. You’ve just faced the harsh reality of taxes.
Gross pay is the total amount you earn. You are likely being paid by the hour. So multiply the number of hours worked by your hourly rate. 10 hours x $12.30/hour = $123 Gross.
Net pay is the total amount remaining after taxes, deductions, and benefits, are taken out. This is often referred to as your take home pay. Typically, you will pay federal income tax, state income tax, Social Security, and Medicare. These vary by city and state.
If you gross $123, you may net (take home) $92.25. Taxes and deduction may start roughly around 25%.
Now what? How motivated are you to hustle and work?
I think it’s important that you understand things like rent, taxes, and health insurance. These can factor into the choices you are making today and tomorrow. These are your choices. It’s your life. You don’t have to figure everything out. Lots of college graduates end up with a degree and no idea what kind of job they want.
Hopefully, I’ve given you some helpful information. Keep learning. You know you can Google anything! Search for average salaries for the jobs you are considering. Search for the cheapest cities to live in. Search for the best jobs with a high school diploma. Good luck!
I have a few other articles that will help.
At the end of the day, it’s up to you to think about what you want to do. What are your different interests? What are you good at? Do you like sitting at a computer? Or do you need to be away from a desk, working on your feet? This blog will give you some ideas to look at the world from a new perspective.
This may be a little out of your comfort zone. Your dream job may be something you’ve never heard of! One way to learn more about different jobs is to go talk to people in different companies in different jobs. Networking is doing informational interviews. This post gives you ideas on how to go about this. I would be happy to talk to anyone who wants to learn more about marketing. Just fill out the form at the bottom of my website. Or reach out to me on LinkedIn.
You don’t need a college degree to create a free LinkedIn Profile! Follow the tips in this blog and start connecting with people. Start with me! Send me a LinkedIn request with a note that you read my blog. I am happy to help. LinkedIn is a gold mine of information! You can search for all kinds of job titles and learn more about internships.
You've graduated from high school and you need to find a full time job. You can combine part-time jobs, babysitting experience and your school activities to create your resume. Practice for interviews and try LinkedIn. Many more tips in this article.
