Trade schools cost more than you may think
Key takeaways
Trades aren’t necessarily a budget-friendly option.
Many technical programs can cost $25,000 to $45,000 or more, putting them in the same ballpark as some four-year schools.
A four-year degree isn’t the only reason to save.
Families who assume a child won’t attend college may ease off saving, only to face a substantial bill for technical or vocational training later.
529 plans already cover many alternative paths.
Qualified expenses can include eligible trade schools, registered apprenticeships, and certain credentialing programs.
When families think about education savings, they usually picture a four-year university. If a child seems more likely to pursue a trade or technical career, it may be natural for families to assume they can save less. That can turn out to be costly. Technical programs can carry substantial price tags, often compressed into a much shorter period than a traditional degree.
Trade school costs can add up quickly
Costs vary widely by school and program, but some private technical programs are more expensive than families may expect. For instance, according to Universal Technical Institute, which operates campuses across the country, several programs can cost more than $40,000 once tuition, fees, and living expenses are included. And some programs take months rather than years to complete.
Program |
Est. total program cost |
|---|---|
Automotive Technology |
$47,280 |
Diesel Technology |
$43,280 |
Electrical / Industrial |
$35,495 |
Welding Technology |
$26,255 |
HVACR |
$25,990 |
Source: Universal Technical Institute (UTI), Cost of Attendance estimates, August 2026. Costs vary by campus, program and student circumstances.
Why saving still matters without a four-year plan
When a child is five or ten years old, families often don’t know whether they will eventually choose a university, trade school, apprenticeship, or another form of postsecondary training.
Continuing to save gives them room to adapt. If a child ultimately chooses a $40,000 technical program, money accumulated in a CollegeBound 529 plan can help prevent that cost from landing entirely on current cash flow or borrowing.
Starting earlier also gives investments more time to potentially grow. Regular contributions can be adjusted later as a child’s plans become clearer, rather than trying to make up a funding gap shortly before training begins.
For financial professionals, that can mean shifting the planning conversation away from a binary question of whether a child will attend college. Instead, clients can save toward a reasonable education target and refine it as the child’s interests and likely path emerge.
A 529 can follow the student
A CollegeBound 529 plan is not limited to traditional colleges and universities. Funds can generally be used tax-free for qualified expenses at eligible postsecondary institutions that participate in federal student aid programs, including many vocational and technical schools1. Qualified expenses can include tuition, fees, books, supplies, and certain required equipment.2
CollegeBound 529 assets can also be used for fees, books, supplies, and equipment associated with registered apprenticeship programs. More recent legislation expanded qualified uses further to include certain recognized postsecondary credentials, including eligible licensing and certification expenses.
There is also flexibility if the beneficiary’s plans change. The account can generally be transferred to another eligible family member, such as a brother, sister, or cousin. In addition, up to $35,000 may be rolled from a 529 plan into the beneficiary’s Roth IRA over time, provided the 529 account has been open for at least 15 years and is subject to annual Roth contribution limits and other conditions.
A broader education-planning conversation
Back-to-school season offers a useful opportunity to revisit education funding with families whose children may be considering alternatives to a four-year degree. By continuing to save and maintaining flexibility, families can be better prepared regardless of whether their path takes a university, trade school, apprenticeship, or credentialing program. Financial professionals can help clients estimate the potential cost, confirm whether a CollegeBound 529 plan can be used for the program, and adjust contributions accordingly.
