As parents talk to their high school students about college, they might be surprised at the initial response that they get. Compared to previous generations, Gen Z is much less likely to immediately trust the institution of higher education, with only 41% indicating that they trust the institution and 35% outright not trusting it.
So why is this? Though there are plenty of reasons for individual attitudes, there are four main issues that it is important for parents to understand when discussing the future with their children. Since open and honest communication is key to the future planning process, being on the same page with teens is essential to a collaborative effort.
Here are four reasons for the distrust, and how teens are seeing each issue:
Return on Investment is Seen as Low - This is the biggest reason for the distrust, and the easiest for all of us to see. The cost of college has increased 12% per year since 2010, while starting salaries for graduates have largely stagnated in that time, according to Pew Research. So, though college graduates still out-earn their peers that didn’t graduate, there is a perceived lack of return on investment, often because of the student loan debt that can accompany a student loan.
Think about the number of Gen Z students that grew up in households that frequently bemoaned student loan debt and the crippling effect that it can have on personal finance. Growing up in an atmosphere where the negative impacts of debt are much more frequently mentioned than the benefits of a degree was bound to have this effect on students. We all know that kids are perceptive beyond our comprehension, so parents need to be aware of their own words being used against them.
Employers Value Skills - According to a Bloomberg survey, a whopping 80% of employers say they should be hiring for an employee's skills, more than the degrees they’ve earned. That’s an incredible number, and the path to building these skills that employers crave is more accessible to high school graduates than ever. Community colleges have answered the call for skill development by emphasizing career and technical certificate paths more and more, which can drastically reduce the amount of time that students need to spend in class before they have the credentials to get their foot in the door.
Additionally, apprenticeships and other “earn while you learn” programs offer a compelling alternative to accruing student debt. Highly skilled trades that are always looking to hire have ramped up these programs, often with the backing of state legislatures, and provide a path that is very appealing to those that like to stay hands on throughout the day. With the recent emphasis on STEM education in schools, this is far from a surprise.
Entrepreneurs and the Gig Economy - The distrust that Gen Z feels also extends the traditional workplace. 50% of 16-25 year-olds have thought seriously about starting their own business so that they can retain flexibility in their life and align their work more towards their values and interests. Again, this is also an extension of kids seeing adults very perceptively. They see jobs not really providing long-term stability, not providing comfortable retirements, and pushing employees to give far more than they get. Of course they don’t want to buy into that! Especially when there are so many avenues to be creative and to earn money doing things they love to do that don’t necessarily involve college.
46% of those in Gen Z also currently participate in the gig economy. The gig economy provides a high degree of flexibility in the kinds of work that people do, the hours that they do them, and the ability to dip in and out of the work as circumstances in life dictate. For young people who are unsure of their ultimate path in life, the gig economy allows for both exploration and self-sufficiency without crushing student loan debt. The gig economy also complements the skill development that we cited previously. Micro-skills can not only be learned, but also monetized in gig work, and tech savvy Gen Z is adept at maximizing this earning potential.
Work/Life Balance and Mental Health - As we wrote about previously, mental health is much more important and visible to Gen Z than previous generations. Gone are the days when young people bought into the idea of sacrificing their passions and free time for 12 hour workdays and no days off in service of an employer or a piece of paper. As discussed above, they don’t see the long-term reward for this near-term investment and sacrifice, and they are not shy about letting their employers know about it. 74% of Gen Z would leave their job immediately for one that offers better work/life balance.
Over 40% of Gen Z has been diagnosed with some sort of mental health issue, a number that was significantly impacted by the disruptions caused by Covid, and unlike previous generations, Gen Z is much more willing to discuss and address these issues, rather than hide them. They understand that metal health is a(the?) key factor to a healthy life, and they are not willing to sacrifice it for a college degree if they don’t see many benefits.
College is absolutely the right fit for a large percentage of Gen Z, but the case is not as open and shut as it used to be for previous generations. As parents, advisors, and counselors from previous generations work with young people, it is essential that they stay on the same page as much as possible. Hopefully, this higher level of understanding leads to the higher degree of collaboration that leads to better outcomes for families.
Comments