May is Teacher Appreciation Month – a time to salute the dedication, service and selfless contributions of our educators. One in every 100 Americans is a public-school teacher.
An estimated 76 percent of 3.5 million full-and part-time public-school teachers are female.[1] As a child’s first teacher is his/her Mom, many teachers are working moms whose lives have been severely impacted by the COVID-19 pandemic. For more than a year, these teaching moms have had to support the unique educational requirements of her students and her own kid(s). Feeling overwhelmed by the pandemic, some 38% of teachers has considered changing jobs.[2] Educators have been historically underpaid throughout much of the country, and the pandemic’s effect on education budgets has shelved pay increases for teachers and affected teacher pensions.
Now is the time for the educators to become students, increase their financial literacy and boost their understanding of how to use money wisely. As women lead some 40% of U.S. households, increased financial literacy among working moms could have a significant impact on many families’ immediate and long-term futures. National nonprofit GreenPath Financial Wellness’ certified counselors are ready to help educators and teaching moms examine their entire financial picture, make a customized action plan, and begin their journey towards financial wellness.
“The pandemic clearly illustrated how financial literacy plays a pivotal role in the economic recovery and wellbeing of many households,” says GreenPath CEO, Kristen Holt. “Industry research finds that 78 percent of adults live paycheck to paycheck, 2 of 3 families lack emergency savings and 3 in 5 adults do not maintain a monthly budget. Esteemed writer/poet Maya Angelou once said, ‘When you know better, you do better.’ The sooner people reach out for help, the sooner they can take charge of their finances and reduce financial stress.”
How do educators and teaching moms build financial resiliency? Put financial goals in writing - one is more likely to achieve them. Track progress and celebrate milestones. Establish a simple spending plan – a financial blueprint that can be used to make informed financial decisions. Automate payments to pay bills on-time as well as savings (set it and forget it). Establish an Emergency Fund to prepare for unexpected job loss or large expenses. Plan one’s use of stimulus funds, unemployment, child tax credit and all forms of federal and state assistance.
GreenPath recently launched its Learning Lab, a free, self-paced online learning portal that provides online access to educational experiences and help people manage money more effectively. Individuals can take GreenPath’s 3-minute Financial Assessment to get a clearer picture of their financial situation. Individuals should consider if a Debt Management Plan can help them pay off unsecured debt in 3-5 years. In 2020, GreenPath helped clients pay off more than $250 million in debt.
A working mom recently shared her financial journey, how she became debt-free, increased her peace of mind and began to build a solid financial foundation for her son.
Now is the time to teach kids about money. Only six states require high school students to take a class on personal finance, 15 states require some coursework integrate finance and another five states mandate a finance course be offered but not required for graduation.[3] Use an allowance for completion of chores to teach children that money is earned through work. Split up the piggy bank to teach the “Save, Share and Spend” approach to money. Play games like Monopoly or Life to help a child learn about planning for the future. Make a wish list with the child, so that he/she can practice setting priorities. Teach decision-making principles to the child while shopping. After all, children learn best from a trusted example.
[1] https://nces.ed.gov/programs/coe/indicator_clr.asp
[2] https://www.cnbc.com/2021/03/01/more-teachers-plan-to-quit-as-covid-stress-overwhelms-educators.html
[3] https://www.cnbc.com/2021/04/05/state-of-personal-finance-education-in-the-us.html