Financial Literacy for the Trades
Updated September 26, 2025
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Getting paid fairly and managing your money keeps you in the trade. This guide covers pay structures, benefits, tool costs, and simple budgeting.
How Pay Works
- Hourly base + overtime (usually time‑and‑a‑half after 40 hours)
- Per diem on travel jobs; verify rates and tax treatment
- Union wage scales: set rates by year of apprenticeship + benefits
- Non‑union: negotiate; compare total compensation (benefits + training)
Benefits to Watch
- Health, dental, vision; retirement (401k or pension)
- Paid training time and CEUs; safety bonuses
- Tool allowances, boot stipends, PPE provided
Budget the Reality
- Income can be seasonal; build a 1–2 month buffer
- Tools and certifications are investments—plan for them
- Track mileage, parking, and per diem details
Compare Offers with a Simple Rubric
- Hourly rate and guaranteed hours
- Overtime predictability; travel/per diem policy
- Training provided (apprenticeship classes, certifications)
- Benefits value (estimate $/month)
Taxes and Records
- Keep pay stubs, per diem logs, and receipts for tools
- Ask a tax pro about deductions (varies by situation)
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