Should you work or travel after graduation?

You’ve wrapped up years of lectures, late nights, and looming deadlines — and now you’ve got a degree or diploma to show for it. If you're like many grads, you'll wrestle with the question, "What's next?" Should you take a break or dive straight into the workforce?

“A lot of grads come out of undergrad thinking, 'Now what?'” said Michelle Dittmer, former teacher and founder of the Canadian Gap Year Association (CanGap). “They haven’t trained for a specific job, and no one’s told them about other options.”

A gap year after graduation can give you clarity, skills, and new perspectives — but it often comes with a hefty price tag. It often means you'll be spending instead of earning money. On the flipside, jumping into work means paycheques and progress, but possibly burnout or regret.

Like any big decision, there are benefits and trade-offs. Here’s what to consider when deciding whether to start your career or take a time-out.

What is a gap year?

A gap year is a break, often after high school or post-secondary education, where you step away from school or work to explore something new. That might mean travelling, volunteering, starting a side gig, or figuring out your next move.

“It’s an intentional step away from your routine,” said Dittmer. “The purpose is to gain perspective — to step off the conveyor belt and take time to reflect, explore, and reset.”

While young people often take gap years after high school, they're becoming more common later in life. 

The pros of taking a gap year

• Clarity before commitment

A gap year can give you space to reflect and make more intentional choices. In one survey, 78% of college graduates who took a gap year said the time helped clarify what they wanted to do.

• Expands your network

Sometimes, the most valuable thing you bring back from a gap year isn’t a skill or story — it’s a connection. 

• Provides better career alignment

Sixty percent of gappers say their experience shaped their career path, and most report being satisfied with their jobs. That’s a pretty solid return on investment.

• Boosts employability

It's possible to use your gap year to make yourself more employable. Volunteering, for example, can fast-track career growth by offering more responsibility than typical entry-level jobs, Dittmer says. “Volunteers are often given more responsibility.” 

• Mental health break

A break can help you mentally recharge before jumping into full-time adulting. One study found that medical students who took a gap year had significantly lower burnout levels. 

• Academic and leadership boost

Planning to continue your studies? A gap year could give you an academic edge. Research shows gap year students often earn higher GPAs and take on more leadership roles. 

Cons of taking a gap year

• Cost of programs and travel

A gap year can get expensive, especially if you're travelling, joining programs, or interning unpaid. Some immersive international experiences cost upwards of $35,000 (yikes!).

• Financial fallout

While your peers may earn salaries and build savings, you could break even or go into debt during your gap year. Time off means postponing steady income, and student loan repayments can add pressure on your wallet. You’ll also miss out on generating RRSP contribution room, which requires earned income.

• Potential impact on long-term earnings

There may be long-term financial trade-offs. One Canadian study found that men who took a gap year before starting a degree earned 11.6% less by age 31, and women earned 12.5% less compared to peers who enrolled right away. Interestingly, men in non-degree programs earned 14.6% more.

 “Everyone’s situation is unique, and earnings are just one component of life,” said Marc Frenette, the study’s author and research economist at Statistics Canada. “The gap year may provide other [non-monetary] benefits for students.”

How to prepare and save for a gap year

A well-spent gap year doesn’t happen by accident—it takes planning, budgeting, and a clear idea of what you want to get out of it. Here’s how to set yourself up for success:

1. Set goals

Before you book flights or sign up for programs, ask yourself what you want out of your gap year. Travel stories? Career experience? Language skills? A professional network? Setting clear goals helps you stay focused and avoid distractions.

2. Make a (flexible!) plan

Sketch out a rough timeline—like working for a few months, then travelling, and then taking a course. A loose framework helps you stay focused, hit milestones, and avoid that “floating in limbo” feeling halfway through your gap year.

3. Do your homework

Not all programs are created equal. If you’re signing up for something structured, like volunteering abroad or taking courses, dig into the details. Read reviews, check credentials, and talk to past participants if you can.

Going solo? Research visas, costs, and logistics. A little prep now can prevent headaches later.

4. Create a budget

Start with learning the budgeting basics and setting financial goals. Take stock of how much money you have available, what you’ll likely need to save, and how long you need to save. Consider the costs of travel, housing, food, insurance, program fees, and hidden expenses like vaccinations or visas.

Tangerine’s Tracker tool can help you break down your spending by category — like groceries, entertainment, and transportation — so you can see where your money is going and stay on track.

5. Scale back on spending

Funding a gap year means cutting costs where you can. Small swaps — like taking transit, sharing subscriptions, or getting a roommate — add up. Tangerine Clients can also use Money Rules to automate savings by rounding up purchases or setting aside money every payday—no extra effort required.

6. Start saving — now

Building a gap year fund doesn’t have to be complicated—but it does take cash and a little strategy. Line up part-time work, a paid internship, or a side hustle to bring in money while you plan. You could even make saving a game.

READ MORE: Celebrating inchstones can help you reach your money goals

7. Put your savings on autopilot

Set up a recurring transfer — weekly, biweekly, or monthly — into a dedicated gap year account. You’ll save without thinking about it and avoid impulse spending. Tangerine Clients can use the Automatic Savings Program to schedule deposits and grow their fund with zero hassle.

READ MORE: Saving and investing strategies for millennials and Gen Z

8. Look for funding

You might be surprised how many scholarships, grants, and funded programs exist—especially for educational travel, volunteering, or community engagement initiatives. Programs like Explore, Katimavik, and CanGap scholarships are great starting points. Some even cover housing and meals.

9. Ask for help

Planning your gap year doesn’t have to be a solo mission. CanGap offers tools, resources, and expert advice to help you design a year that works. Tune into the Gap Year Podcast or join Facebook groups and Reddit threads like r/gapyear to swap tips, get advice, and avoid costly mistakes.

Starting your career after graduation

Jumping into the workforce is the traditional path — and for many grads, the right one. Here’s a quick look at the pros and cons.

Pros of working after graduation

• Launch your career

Starting work after graduation helps you build a strong foundation early on — gaining valuable experience, skills, and momentum toward promotions or specialized roles.

 “The world feels uncertain, especially with talk of recession,” said Sabrina McTaggart, a career coach for young adults. “Some students are thinking, 'I want to start building practical experience, grow my network, and launch my career now.'”

• Path to financial security

Starting your career means steady income, financial stability, and the freedom to spend — whether on rent, dining out, or a vacation.

"Indeed, launching right out of school with the best salary you can negotiate sets you on a very different trajectory," said McTaggart. “Five or 10 years later, those who delay often fall behind financially.”

Statistics Canada research backs this: “Men who took a gap year before enrolling in a degree program earned $57,448 less between the ages of 17 and 31 than their counterparts who didn’t,” said Frenette. “Similarly, women earned $49,788 less.”

• Grow your wealth

A steady income lets you contribute to savings accounts, TFSAs, RSPs, or GICs — powerful tools for building long-term wealth. The sooner you start investing, the more compound earnings can work magic. Bonus: RSP room grows with earned income, so starting work right away can give you a head start on your financial goals.

•  Beef up your resume

Early jobs give you tangible experience to put on paper — whether it’s relevant skills, measurable achievements, or projects you can speak about in interviews. It also helps you start building a professional network that can open doors later on.

• Employer benefits

Many full-time roles come with perks like health coverage (massages! dental! glasses!), retirement plans or pensions, paid vacation, sick leave, gym memberships, and even professional development opportunities.

Cons of working after graduation

• Bonus points on your resume

A degree or diploma isn’t a golden ticket anymore. Without experience or a standout story, it can be tough to land a solid job right away.

“Just having a four-year degree won’t make a recruiter go ‘wow,’” said Dittmer.

•  Burnout risk

If you’re already drained from school, jumping straight into a 9-to-5 can be overwhelming.

“University can be a grind — especially if you’ve been pushing hard since high school,” said McTaggart. “We have to talk about the ‘B word’: burnout. Students who go straight from intense academics into demanding careers are definitely at risk.”

• Limited exploration

Jumping into a job for the paycheque might mean skipping the chance to explore what interests you. Without clarity, you could end up in the wrong role — leading to frustration, switching tracks later, or staying stuck in something that doesn't quite fit.

• Less flexibility

Once you’re working full-time, taking extended time off to travel, volunteer, or pursue personal goals is harder.

“Careers are long,” said McTaggart. “Once you’ve launched, there aren’t as many chances to step off the conveyor belt and just take time to see the world.”

Work and travel: how to do both

Torn between making money and seeing the world? You don’t have to choose. With a bit of planning, you can work while you travel, giving you the best of both worlds: income and adventure. Here are a few ideas:

Take a seasonal job

Seasonal gigs — like working at ski resorts, summer camps, or in tourism—let you earn money while experiencing a new place. Some may even include perks like housing, meals, and time off to explore. Bonus: The off-season gives you the freedom to travel, take a course, or recharge between contracts.

Work overseas

Programs like International Experience Canada (IEC), BUNAC, or SWAP can help you secure working holiday visas and even offer job placement support. Farm-based options like WWOOF or Workaway let you trade time and labour for room and board—perfect for stretching your budget while immersing yourself in local life and culture abroad.

Go remote

Do you have a specialized skill? Remote work or freelancing lets you earn from anywhere — as long as you’ve got Wi-Fi and some discipline.

“I know a therapist who can work from anywhere because her clients prefer to meet online,” said McTaggart. “There’s a lot to be said for the digital nomad lifestyle. I’ve worked with clients who aspire to that — people whose work is portable and who want to take it around the world.”

Be a house or pet sitter

Get free accommodation in exchange for caring for someone’s home or pets. Platforms like Trusted Housesitters connect travellers with homeowners seeking reliable sitters. It’s a budget-friendly way to explore new places, live like a local, and enjoy furry friends — no hotel fees required.

Plan a sabbatical year

Some employers provide unpaid or partially paid time off after a few years — giving you a chance to travel or recharge without quitting your job entirely.

Choose your own adventure

Whether you’re itching to book a one-way flight or dive into your first job, there’s no one “right” path after graduation — just the one that fits you. A gap year can be a chance to reset and explore. Starting work can build stability and momentum.

“I have a friend who once said something I’ve never forgotten — ‘All of life can be reduced to one word: choose,’” said McTaggart.

Whatever you decide, make it meaningful. Reflect on your goals, stay curious, and remember—you don’t have to have it all figured out. But you do get to choose what’s next.