$1.1 Trillion at Stake: Why Parents Need to Rethink College Planning

Let’s talk about the future—not just the future of work, but the future of our children.

A new report from Pearson,?Lost in Transition: Fixing the Skills Gap, has revealed a staggering number:?$1.1 trillion. That’s the annual cost to the U.S. economy of inefficient career transitions and learning gaps. To put it another way, 5% of the nation’s GDP is lost every year because too many young adults are entering the workforce unprepared.

This isn’t just an economic issue. It’s a deeply personal one. It’s about the struggles of recent graduates who can’t find jobs that match their skills. It’s about the emotional toll of feeling underprepared and undervalued. And it’s about the parents who want nothing more than to see their children thrive.

As someone who’s spent years working in higher education and college admissions, I can tell you this: the traditional model of college planning is broken. The old playbook—pick a major, earn a degree, land a job—no longer works in a world where technology, AI, and rapid industry changes are reshaping the workforce.

So, what can parents do to help their children navigate this new reality?

The Skills Gap: What It Means for Your Child

The skills gap isn’t just about technical skills. It’s about the mismatch between what employers need and what graduates can offer. Employers are looking for critical thinking, adaptability, and the ability to learn continuously—skills that many young adults aren’t being taught in school.

This gap is costing the U.S. economy $1.1 trillion annually, but the real cost is much harder to measure. It’s the lost potential of millions of young adults who are struggling to find their footing in a workforce that’s changing faster than ever.

Rethinking College Planning: A Parent’s Guide

As parents, we have a critical role to play in helping our children bridge this gap. Here’s how you can start:

1. Start Career Conversations Early College planning shouldn’t begin in senior year of high school. It should start much earlier. Encourage your child to explore their interests and passions through extracurricular activities, volunteer work, or part-time jobs. Help them connect these experiences to potential career paths.
2. Focus on Skills, Not Just Degrees While a college degree is still valuable, it’s no longer the only path to success. Help your child consider alternative pathways, such as apprenticeships, trade schools, or stackable credentials (short-term certifications that build toward a degree).
3. Teach “Learning to Learn” In a world where career pivots and upskilling are the norm, the ability to adapt is more important than ever. Help your child develop metacognitive skills like goal setting, critical thinking, and self-regulated learning. These “learning to learn” skills will serve them throughout their lives.
4. Rethink the College Search Process When it comes to choosing a college, don’t just focus on rankings or prestige. Look for schools that prioritize career readiness and offer strong support for students’ post-graduation goals.
5. Prepare for Lifelong Learning The days of “set it and forget it” education are over. Help your child embrace a mindset of lifelong learning. Whether it’s taking online courses, attending workshops, or earning certifications, the goal is to keep growing—no matter where life takes them.

A Call to Action for Parents

The $1.1 trillion skills gap is a wake-up call for all of us. It’s a reminder that the world our children are stepping into is vastly different from the one we knew. But with the right approach, we can help them navigate this new landscape and build lives of purpose and fulfillment.

It starts with rethinking how we approach college planning—not as a one-time decision, but as an ongoing process of exploration, skill-building, and adaptation. By having honest conversations, encouraging skill-building, and embracing alternative pathways, we can set our kids up for success in a world that’s changing faster than ever.

The stakes are high, but so is the potential. Together, we can help our children bridge the skills gap and unlock a future filled with opportunity.

What steps are you taking to prepare your child for the future?

P.S. This post is based on my Forbes article.