Ask any teacher what drew them to their profession, and it’s a likely bet none of them will mention the pay. A K-12 teacher’s salary can range from under $40,000, to almost $60,000. They are some of the lowest paid bachelor degrees in the country despite working far more than the average office worker thanks to tutoring, parent-teacher meetings, grading and lesson planning. You know that your job is a work of passion, but that doesn’t change the fact you need savings and financial stability just like everyone else. If you start a career in teaching you need to be able to manage the financial aspect of what this job both offers and demands. In this guide, you’ll discover six helpful tips for saving on a teacher’s salary.
Make Sure You Plan Ahead for Tax Season
The educator tax deduction offers teachers an above-the-line deduction of $250 each year. This helps reduce your total adjusted gross income, and because it’s above-the-line, that means you don’t have to worry about itemizing it. Keep in mind that after the COVID-19 pandemic outbreak, professional educators are also able to count PPEs, sanitizer and other protective health equipment as part of their supplies. You can also write off up to $2,500 a year in interest if you pay on student loans. The best news is that this deduction is not limited to federal awards. Any loans borrowed for education expenses qualify for these savings.
Keep an Ongoing Record of Your Spending
Having a budget is great, but it doesn’t serve its purpose if you only use it to know how much money you can spend this month. That may sound counterintuitive, but think of it this way that in having a budget is more than just a boundary for what’s left in your bank account after bills. The purpose of a budget is to help you develop a framework for your finances, including how much you’re comfortable allocating to discretionary income as well as how much you can reasonably save respective to your income. Start taking inventory of how much you really spend each month. Weekend brunches for $30 a piece add up to $120 a month. Find ways to cut back when you can, and reflect on any instances where you may have been spending to ease stress or deal with negative emotions.
Keep an Emergency Fund
Teachers always expect the unexpected in the classroom, and you know anything can happen without warning. You should take this philosophy into your off-work life and build a solid emergency savings fund for yourself. Ideally, everyone should have at least six months of bills put away. If that isn’t possible with current commitments, aim for three instead. Putting away between $50 to $150 a month will help you gradually build a safety net that you’ll be immensely grateful for whenever you need it most.
Plan Ahead for Your Child’s Future
Set up a college savings account for your child as soon as you can. Encourage loved ones to make donations to it during holidays, for birthdays and other special events. Depending on your state, you may also qualify for 529 contribution tax deductions. Another way to plan for your child’s future education is to explore loans and private financing options.
There are federal and private Parent Plus loans, which you borrow on behalf of your child. There are also private student loans that you can cosign on. While cosigners do hold financial responsibility if the loan holder fails to pay, your child can later refinance and have you sign off. Being a student loan cosigner is a good way to help your child finance their education without having to pay directly yourself. To be a cosigner, you’ll only have to focus on paying down your own debts and having a good credit score before your student applies.
Ask Parents to Contribute to the Classroom
Back-to-school is the perfect time to send out a list of classroom supplies that parents can donate. You can also ask them through wish lists during the holiday season and throughout the year. Make sure you keep the requests lighthearted and only periodic. No one wants to feel like they’re being harassed to supply, and some parents may feel bad if they’re unable to afford a donation. It’s best to time your requests around appropriate times and events. These are moments when parents are expecting to purchase things for their child’s education anyway.
Take Advantage of Teacher Discounts
One major perk of being an educator is that you can score great discounts on a lot of purchases. Craft stores, restaurants, eyeglasses providers and even cosmetic stores offer educator discounts. Check out this list to discover some of the savings you may be missing out on. Be sure to seek out opportunities near you, too. Many local businesses are happy to support the local school system. You may even be able to get some to donate supplies or help fundraise for your school.
