First-year teachers may struggle to balance their time between long work hours and daily personal responsibilities. They may find little energy left at the end of each day to address money matters. While the struggle to balance work and finances is common among new educators, it’s crucial for financial well-being. Prioritizing personal finance education and implementing practical money management techniques can help first-year teachers balance their professional and financial lives.
Create a Realistic Budget
As a salaried educator, you can create a budget based on predictable income. Calculate your monthly income and expenses. Include a small buffer for variable costs such as utilities and groceries. Subtract expenses from income. The amount left over can be used for discretionary spending.
Some teachers are surprised to learn that they are expected to buy classroom supplies and materials using their own money. It might be wise to add this expense to your monthly budget. Speak with other teachers to estimate the costs.
Fortunately, an educator expense deduction lets you write off specific costs on your federal income tax return. While teachers can deduct some expenses, setting budget limits could help you avoid financial strain.
Confirm Student Loan Forgiveness Options
Speak with your loan servicer to confirm eligibility requirements for loan forgiveness. For example, the Public Service Loan Forgiveness program can forgive the remaining balance on your Direct Loans after making 120 qualifying payments while working full-time for a qualifying employer. State loan programs may offer similar benefits.
To enroll in these repayment plans, follow these steps:
• Contact your loan servicer to discuss your eligibility for loan forgiveness programs.
• Gather necessary documentation, such as employment certification forms and proof of income.
• Submit the required paperwork and follow up with your loan servicer to ensure your enrollment is processed correctly.
By researching and potentially enrolling in these repayment plans, teachers can alleviate some of the financial stress associated with student debt, letting them focus more on their work in the classroom and their personal financial goals.
Explore Pension Retirement Options
Planning early could help you make better decisions about your savings and investments. Visit your state teachers association to access resources to help with retirement planning. Many websites provide access to:
• Retirement calculators that estimate retirement income based on years of service, salary, and contribution rates.
• Educational guides, webinars, and workshops that provide information on various retirement plans, investment options, and strategies for saving.
• One-on-one financial counseling with professionals who specialize in working with educators and can offer personalized guidance based on individual circumstances.
Understanding your options early in your career could help you better manage your money.
Maximize Educator Benefits
Educators have access to a wide range of discounts on essential items like school supplies and discretionary expenses like entertainment, which can help reduce overall spending. By using these discounts and resources, teachers can save money and alleviate the financial strain many educators face.
Set aside time to research teacher discount programs online through national retailers, insurance companies, and local businesses. Explore the special Teacher Resources that HawaiiUSA provides. Also, always inquire about educator discounts and be prepared to show proof of your teaching status, such as a school ID or pay stub, when making purchases.
As a first-year teacher, you have the power to take control of your finances and overcome the financial hurdles new educators face. Remember, the habits you establish now will lay the groundwork for a financially secure future, so start putting these strategies into practice today and watch your financial confidence grow.
