Teaching the Teachers: Why Educators Need Financial Literacy Training Too

By - CA Manish Mishra, Gounder, GenZCFO

In every corner of this world and every classroom, there is a teacher who makes a difference not just for today but for the future. Teachers impart valuable knowledge, critical-thinking skills, and a strong foundation for students' lifelong learning. However, even though teachers are quite proficient in lesson planning and curriculum designing, they are still unprepared when it comes to money matters because they are expected to teach the future ones' fortunes without providing them the necessary tools to make their financial well-being grow.

This contradiction raises an important question: Why the hell don't we teach these teachers financial literacy?

The Financial Challenges Educators Face

Educational professionals, especially those in public institutions, are relatively modestly paid and just as irregular in their remuneration. These individuals have relatively little room for any financial counseling. Quite a few would spend a significant part of their lives juggling other jobs to cushion the low pay. Student loans become an increasing strain, complicated retirement planning, and rising costs of living; it becomes apparent: education personnel need financial literacy just as much, if not more so, than any other professional.

But teachers, like many other professionals, actually juggle several hats. Some can teach different subjects, while some teachers need to take on extra jobs just to have another source of income. According to the increasing burden of student loans, complications in retirement planning, and soaring prices of living, just to name a few, teachers need financial literacy as much, if not more than, any other professional out there.

Why Financial Literacy Training Is Essential for Teachers

• Personal Empowerment

A financially literate teacher is able to resolve issues related to expenditures on the basis of sound decision-making regarding savings, investments, insurance, and pensions. This is likely to improve the quality of their life and lower the financial stress upon them so that they can perform well as jobholders and live a satisfying life. 

• Positive Role Models for Students

Teachers who see the world through the lens of financial literacy will be able to impart some very practical money management skills to their students, both through formal instruction and by modeling correct attitudes and behaviors. 

• Enlightened Retirement Planning

Unlike other professionals, for whom the company provides financial advisors, many educators are left on their own to make tough decisions regarding pensions and retirement funds. Financial training would help them secure benefits that are appropriate and make better long-term decisions. 

• Helping During Transitions

Teachers undergo many transitions, from moving to a new position to chartering through unpaid leave or sabbatical, which jeopardize their financial well-being. Training in budgeting and emergency planning can be very useful in these situations. 

• Burnout Prevention

Financial stress is one of the leading causes contributing to burnout. Assemblage of financial management skills could give teachers a greater sense of psychological security, thus relieving anxiety and consequently improving retention in education.

Integrating Financial Literacy into Professional Development

Financial literacy training should truly support educators through regular training in career development. Such sessions may include:

• Budgeting and managing debts

• Loan agreements and interest rates 

• Investing basics and retirement plans 

• Insurance and emergency funds

• How to deal with tax-related consequences/unforeseen tax liabilities

In addition, schools and educational boards could coordinate with finance professionals for tailored workshops or provide access to vetted resources or tools.

A Ripple Effect That Benefits Al

There are benefits for all when an educator acquires financial knowledge. Financially confident teachers are likely to talk about money management in the classrooms, thereby creating an entire generation of financially savvy students. Meaning, empowering teachers financially is not just an investment for their future, but also for the future of all of us.

Teachers deserve more than mere accolades and appreciation; they deserve concrete measures to prepare for their eventual financial outcomes. Financial literacy training is not some luxury, but rather a necessity. If priority is given to this aspect of teacher development, our educators will not only be teaching the next generation how to make it, but they will also live that success themselves.