According to a report by the National Education Association (NEA), teachers make 5% less than they did ten years ago, when adjusted for inflation. That compounds the challenges they face in maintaining financial stability.
Additional research from DailyPay, conducted by The Harris Poll, reveals a concerning trend among teachers. 61% of teachers in the United States stress about their finances. Many either get a second job or consider leaving their job for one that pays more.
Teachers, who play a crucial role in shaping the country’s future, face mounting pressures that could affect their performance and well-being. There is an urgent need for systemic changes to support educators and ensure they are adequately compensated for their essential work.
“With continued high inflation and the surging costs in everyday necessities, teachers from across the country are faced with daunting challenges to make ends meet and pay bills on time,” explains Alex Haig, Vice President, Public Sector, DailyPay.
Valuing Educational Assets
The NEA survey says 42% of teachers struggle to pay their bills on time, while 27% report they ran out of money between paychecks at least once over the past year.
Alarmingly, one in five teachers admits they could not afford to pay a bill at some point during the last year.
Only about half of teachers surveyed feel they can save enough money for a comfortable retirement. More than one in five teachers (22%) have taken on a second job or side hustle to make ends meet.
These daunting financial challenges push some educators to contemplate leaving their teaching positions entirely for better-paying opportunities. More than a quarter of teachers say they have considered leaving their current jobs for a higher paycheck.
This financial instability impacts teachers’ personal lives and has broader implications for the education system. Financial stressors can affect teachers’ focus and performance in the classroom, ultimately impacting student outcomes.
Higher teacher turnover rates resulting from financial pressures can create instability within schools, and disrupt the continuity of instruction; crucial for effective learning. Teacher-student relationships are also strained. Schools in underfunded districts struggle to recruit and retain qualified teachers, exacerbating educational inequities.
What Can Be Done To Help Teachers
Ssystemic changes to support educators are urgently needed.
Earned Wage Access
One promising solution to alleviate financial stress among teachers is the implementation of Earned Wage Access (EWA) programs.
EWA grants teachers access to earned wages before their official payday, providing immediate financial relief for unexpected expenses. This flexibility can reduce reliance on high-interest loans or credit cards, allowing educators to manage finances effectively.
Pick a Side Hustle
Many teachers take on additional jobs or side hustles to supplement their income. These side gigs can range from tutoring and freelance writing to selling handmade crafts or working part-time in retail or hospitality.
While side hustles help alleviate immediate financial strain, systemically addressing teacher compensation ensures educators’ economic well-being and job satisfaction.
Change to Cities Where Pay Is Higher
Teachers can consider relocating to areas with more competitive pay scales. Educators’ salaries vary significantly depending on state, district, and local living costs.
According to the NEA’s Educator Pay Data 2024, teacher pay is highest in:
Minnesota: $70,005Hawaii: $70,947Oregon: $72,476Illinois: $73,916Pennsylvania: $74,945Alaska: $76,371Rhode Island: $79,289Maryland: $79,420New Jersey: $81,102Connecticut: $83,400Washington, D.C.: $84,882Washington: $86,804Massachusetts: $92,307New York: $92,696California: $95,160
A Few Other Ideas
A multifaceted approach can effectively alleviate teachers’ financial stress.
First and foremost, teachers and their communities must advocate for higher salaries and encourage local governments to allocate more of their budget to education and teacher compensation.
Because of rising living costs, housing stipends or subsidies can ease financial burdens, as can comprehensive health insurance plans that reduce out-of-pocket expenses. Local schools and universities can also implement scholarships or reduced tuition for teachers’ families.
Financial literacy programs can also help teachers manage their finances more effectively, ensuring they have the tools to secure their economic well-being.
Next Steps?
Teachers across the country face significant challenges in managing their finances, which can impact their job satisfaction and effectiveness in the classroom.
The burden of financial insecurity affects teachers personally and affects their ability to provide quality education to students. Policymakers, education leaders, and communities must prioritize solutions that support teachers, such as advocating for fair compensation, providing comprehensive benefits, and promoting financial wellness programs.
