6 Essential Financial Planning Tips for Educators

As educators, you have a ton of different hats to wear throughout your day. With all of the wonderful roles you play in your household, classroom, and community, there’s one thing you definitely love most… financial planning! Right? Or maybe not...

Whether you love it or hate it, financial planning is a crucial step in preparing yourself for a future full of creative adventures in the classroom and outside world alike. By using some of these helpful tips, you can maintain your finances now and build up to the financial future of your dreams!

1. Budget According to Your Pay

Every household budget looks a little different from the next, but for those with different pay schedules, that can be even more true! For many educators, your income is divided among the 9-10 months of the school year rather than the entire calendar year. Making an annual budget can provide an extra level of comfort and security year-round. 

While planning out an annual budget may seem like a huge task, having a guide in place can help make breaks a more relaxing and enjoyable time! Annual budgets may seem intimidating, but by starting off with your typical monthly budget items and simply multiplying by 12, the budget’s framework is already complete! Many educators have secondary sources of income, and annual budgets can help expose the seasons in need of those extra funds.

2. Check Out Your Student Loan Options

Student loans are a struggle shared by many adults in the education field. Unique options for student loan forgiveness are designed specifically for individuals working for non-profit and government organizations, as well as educators. 

Both Public Service Loan Forgiveness (PSLF) and Federal Family Education Loan (FFEL) programs can help relieve some of the pressure of student loan debt for teachers with unresolved federal loan debt. 

For educators with private loans, refinancing can sometimes be in your best interest as well. Like most matters of both debt and education, the best option for each individual may look a little different. By learning your options and consulting with a Financial Professional, you can find the path that most effectively meets your goals.

3. Create a Workable Retirement Plan 

Retirement isn’t everything, but it is still very important. The sooner you start planning for your retirement, the better shape your savings will be in, once the time comes to celebrate your last year in the classroom. 

Options for retirement savings funds vary, but it’s always best to learn about the plan your employer offers and get to know it like the back of your hand. Make sure the plan you’re contributing to is the best one for your current budget and future financial goals. Our team offers comprehensive and hands-on retirement planning services to help you do just that!

4. Shop Smart for Your Classroom

It’s no secret that many educators have to budget not only for their own homes but for their classrooms as well. Educators do their best to make the classroom a warm and comfortable space for learning, but that comes with a price!

Set a classroom budget and stick to it. Having a set budget for your classroom can help curb some of those little impulse buys throughout the year that really add up. And who doesn’t love a teacher discount when you can find one? WeAreTeachers has this awesome list of teacher discounts that is updated regularly with deals on classroom materials and much more!

5. Maximize Your Earning Potential

Research the impact a few extra courses could have on your income. Every school and district has its own policies, so check with your leadership or HR teams. Furthering your education can really help build your career in the education field. As shown by Educators F.I., the impact of even just a few extra credits on top of your degree could make a huge difference in your salary. 

Once you have an idea of whether it’s in your best interest to further your education, check out any resources or support your own district may provide to help you advance your education. The better-supported teachers are, the more successful a district can be, and many districts show their support through access to higher education.

6. Remember, You DESERVE Financial Freedom!

Let’s face it: You probably don’t work in education to become a millionaire. 

But financial literacy is achieved through information and the utilization of every possible resource, not income alone. You can build the skills - and find the knowledgeable support - to help achieve financial freedom for you and your family. 

By prioritizing financial planning, you can help ensure that your future beyond the classroom doesn’t get left up to chance. It’s important that you start crafting the plan that centers on you, your family, and your desired financial future.  

Teachers play a valuable role in shaping our families and communities. As a team, we thank you for all that you do! And we are here to support you every step of the way. 

Book an appointment with our team for any help you may need.