OPINION : Golden Handcuffs...what they didn't tell you in trade school
Basic Financial Literacy and the Trades
Let's talk about "golden handcuffs". You just got a great job in the trades and you are making big cash! Probably going to need a truck, of course a quad, maybe even a boat! The monthly payments are easy and you still have beer money. What they didn't tell you was how to pay yourself...To be absolutely clear I am not a financial expert, just someone who was taught some valuable lessons.
About 28 years ago, I had an unexpected meeting with a senior banker at the Royal Bank of Canada RBC that changed my financial life. Though he wasn’t originally scheduled to meet me, he took the time to share simple, actionable advice inspired by The Wealthy Barber. Following his guidance secured my financial future, and now, years later, I strive to pay it forward by sharing similar lessons with younger generations.
In recent years, the building trades—welders, carpenters, electricians, boilermakers to name a few—have become some of the most sought-after professions. An aging workforce, combined with a generational shift toward university degrees, has led to a scarcity of skilled tradespeople. In a market with such high demand, skilled workers can command significant wages, with a plethora of meaningful, well-paid opportunities. Yet, despite these high earnings, many in the trade’s live paycheck to paycheck. This isn’t due to a lack of effort or skill; rather, it’s a reflection of the limited financial literacy training provided to tradespeople.
A comprehensive education in the trades focuses on hard skills like welding, electrical schematics, and other technical proficiencies. However, financial literacy is equally essential but not always emphasized in these training programs. Learning to master a trade and secure a good wage is only part of building a successful career; knowing how to manage that income is equally important. Without an understanding of basic financial principles, high earnings can easily slip away, leaving tradespeople without a safety net for the future.
The fundamentals of financial literacy are straightforward yet powerful. Principles like “pay yourself first” teach the importance of setting aside savings before budgeting for expenses, building a habit of long-term financial health. Understanding credit ratings and how to maintain them opens doors to future opportunities, from favorable loan rates to mortgages. Familiarity with various types of accounts—Tax-Free Savings Accounts (TFSAs), checking and savings accounts, and investment vehicles like mutual funds or retirement accounts—can empower young tradespeople to make their money work for them.
Imagine a young electrician, welder, or carpenter who enters the workforce armed not only with their trade skills but with a solid grasp of financial basics. With discipline and guidance, they could leverage years of good wages into a solid financial future, investing wisely and building a foundation for long-term success. Financial literacy doesn’t require advanced financial strategies, nor does it rely on luck—it’s about learning to use available tools and having the discipline to make sound financial choices consistently.
The key to instilling this financial literacy is to make it a fundamental learning pillar, encouraged at every stage of the trades journey. This would mean embedding basic finance into apprenticeship programs, introducing it through unions or training organizations, and encouraging mentors to discuss financial management with new tradespeople. The mentorship role, especially, is vital; seasoned workers can offer valuable real-world insights and point younger colleagues toward meaningful resources. Whether it’s a discussion about retirement planning or tips on managing debt, these conversations can make a lasting impact.
With the proper support, financial literacy can empower tradespeople to secure not only a promising career but also a stable financial future. The high demand for skilled trades is a golden opportunity for many, but to make the most of it, financial education must be part of the conversation. By embracing financial literacy as a core element of trades education, we can help the next generation of tradespeople thrive in all aspects of their lives.
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