As graduation season blooms across the country, families are gathering to celebrate high school seniors taking their next steps into adulthood. For many, this means packing for college dorms, selecting majors, and preparing for four years of academic studies.
But increasingly, savvy families are looking in a different direction – one that offers strong job security, excellent pay, and a direct path to financial independence: the skilled trades.
Thanks to the flexibility of the 529 plan, this path is not only accessible but also financially advantageous.
What Is a 529 Plan, and What Does It Cover?
A 529 plan is a tax-advantaged savings plan designed to encourage saving for future education costs. Most people associate 529s with traditional four-year colleges and universities, but the scope is broader than many realize.
Qualified Education Expenses Include:
- Tuition and fees
- Required books and supplies
- Equipment (e.g., welding helmets, culinary knives, or cosmetology kits)
- Certain technology costs (like laptops or software, if required by the program)
- Room and board (if enrolled at least half-time)
Eligible Institutions Include:
- Accredited four-year colleges and universities
- Community colleges
- Vocational and trade schools
- Apprenticeship programs registered with the U.S. Department of Labor
You can check a school's eligibility through the Federal School Code Lookup. If it’s listed, your 529 funds can go to work.
Trade Schools: The Overlooked Powerhouse of American Opportunity
For decades, the prevailing narrative has elevated college degrees above all else. Yet, skilled trades like plumbing, electrical work, carpentry, HVAC, welding, and auto mechanics continue to power our economy – and provide lucrative, fulfilling careers.
The Real Payoff in the Trades: Business Ownership
There are over 700,000 skilled trade jobs currently unfilled in the U.S. – a number set to climb as baby boomers continue to retire. But behind this labor shortage lies a compelling financial opportunity, especially for those who take the leap into business ownership.
While the median salaries reported by the Bureau of Labor Statistics are respectable:
- Electricians: $61,590/year
- Plumbers: $60,090/year
- HVAC Technicians: $51,390/year
- Construction Managers: $101,480/year
These figures often understate the true earnings potential of tradespeople who run their own operations.
Self-employed professionals in the trades – those with their own crews, equipment, and client rosters – can easily surpass six figures annually, with many bringing in $150,000 to $250,000 or more, depending on their region, specialization, and business acumen.
What’s more, many of these individuals reach financial stability faster. With minimal or no student debt, tradespeople often achieve a positive net worth well ahead of their college-educated peers, burdened by loan repayments.
While tech and finance careers often dominate the spotlight, the true millionaire next door is more likely to be the electrician with a fleet of trucks, the plumber whose phone never stops ringing, or the HVAC specialist booked solid before the first heat wave hits.
They might not wear suits, but they’re building wealth – and often, building it faster.
Even the White House Noticed
Recently, President Donald Trump floated the idea of diverting billions of dollars in federal aid away from elite universities and toward vocational training and trade education. His proposal sparked debate, but it also underscored a truth that many Americans are waking up to: our country desperately needs skilled tradespeople, and those who step into these roles are likely to enjoy not just job security but economic mobility.
Why Now Is the Perfect Time to Rethink the 529 Plan
With high school graduation around the corner, many families are evaluating their 529 balances and preparing for how those funds will be used. But don’t make the mistake of thinking your child must attend a university to justify the plan.
If your son or daughter dreams of becoming an auto technician, a welder, a hairstylist, or a contractor, your 529 can support that dream. And it’s not just acceptable – it may be one of the smartest financial decisions your family can make.
So, as your family considers the future, don’t overlook the trades. With a 529 plan in your corner and a toolbelt in hand, your graduate could be on the path not just to a job, but to a calling!
"Skilled Trades: Rethink Success After High School." FMeX. 2025.
