It’s not uncommon for teachers across the country to dip into their savings to purchase school supplies for their classrooms. School districts do not reimburse the vast majority of these purchases. Yet, teachers continue making these purchases to uphold a high standard of work and provide a quality experience for their students.
Financial Benefits of Being a Teacher
Becoming a teacher is a decision that can be motivated by several factors. We also see many pros and cons of being a teacher and the pros and cons of being a high school teacher. But now we will see the special financial benefits of being a teacher. You may aspire to contribute to the growth of upcoming generations or have a passion for teaching a particular subject.
There are numerous advantages to choosing teaching as a profession, and here are some of them to ponder upon if you’re considering a career in education:
1. Stable Income and Impact
Teachers typically enjoy a stable income throughout their careers, providing a reliable financial foundation. You can constructively impact the students who walk into your classroom every day.
Teachers are exceptionally positioned to impart wisdom and learning to the upcoming generation of grown-ups who will one day take on leadership roles in their households and communities.
2. Pension Plans
Many education systems offer generous pension plans, ensuring a secure retirement for teachers. At the time of pension, they get a good amount of currency so that teachers can enjoy their beautiful life.
3. Health Insurance
Teachers often receive comprehensive health insurance coverage, safeguarding their well-being and reducing medical expenses.
4. Loan Forgiveness Programs
Various loan forgiveness programs are available exclusively to teachers, alleviating the burden of student loans.
5. Summer Breaks
While not a direct financial benefit, the extended summer breaks allow teachers to pursue additional employment opportunities or engage in personal endeavors to boost their income.
6. Professional Development Funding
Schools and districts frequently provide financial support for teachers to attend workshops and conferences or pursue advanced degrees, enhancing their skills and earning potential.
7. Tax Deductions
Teachers can benefit from tax deductions on educational supplies, classroom expenses, and professional development costs, reducing their taxable income.
8. Job Security
According to data from the U.S. Bureau of Labor Statistics, the teaching field is predicted to experience a 7% growth rate from 2021 to 2031, resulting in over 900,000 job opportunities in various subject areas.
Although professionals in education, training, and library occupations earn an average median annual wage of $57,220, this may not accurately reflect their significant impact on society. However, schools offer teachers comprehensive benefits packages, including health insurance, vision and dental insurance, retirement plans, continued education opportunities, and more.
9. Teacher Discounts
Many businesses and organizations offer exclusive discounts to teachers, ranging from travel and entertainment to retail and dining, stretching their income further.
10. Free Travel opportunities
One of the fantastic benefits of pursuing a teaching career is the flexibility it offers. Certified educators have the luxury of working in various locations, thanks to reciprocity agreements between states.
Take Advantage of Teacher Benefits and Save Money
Teachers are eligible for several benefits that can reduce personal expenses, assist with personal necessities such as insurance policies and health care, and prepare them for retirement. The amount of discounts, benefits, and pension payouts varies by state, so teachers should check with their school district about the following benefits.
Pensions
A pension is a retirement fund available to most public school teachers. Pension rules differ depending on the school district, but most guarantee a set payout amount to teachers when they retire. The pension amount is determined by a formula set by the state and is based on a teacher’s final salary and years of service.
States have vesting requirements that require teachers to work a certain number of years before qualifying for a pension. Typically, five to ten years of service is required in most states. Check with your school district on the local requirements for your pension plan to understand what is expected to receive benefits.
Insurance
Many insurance companies offer discounts for teachers and school district staff. While discount percentages and insurance rates will vary by state, it’s best to speak with your current insurance provider about the homeowner’s insurance, life insurance, and car insurance discounts they offer. You will have to provide proof of profession to qualify.
Car Insurance Discounts
Finding discounts on car insurance is a great way to cut back your annual expenses. Teachers are eligible for car insurance discounts at several insurance providers. Let your insurance agent know that you are a teacher to learn more about educator discounts, and compare car insurance quotes from at least three companies to ensure you’re getting the best and cheapest car insurance for your needs.
- GEICO Educational Organization Membership Discounts: GEICO offers discounts for education professionals from industry-specific organizations and associations. Examples of these organizations include the Association of American Educators, the Association of Teacher Educators, and the National AfterSchool Association.
- Horace Mann Educator Discounts: Since Horace Mann was founded “by educators for educators,” it has always been considered the best interests of America’s teachers. Therefore, it offers a variety of auto insurance discounts for teachers.
- Liberty Mutual Teachers’ Auto Insurance Discount: Liberty Mutual offers discounts for teachers that provide significant savings on features like vandalism loss protection, collision coverage, and more.
Home Insurance Discounts
Another way to save extra yearly is to ask your homeowner insurance provider if they offer teacher discounts. Teachers are eligible for a variety of discounts through many insurance companies. You can compare home insurance quotes using your teacher’s discount to see which company has the best price and coverage.
- California Casualty Educators Insurance: California Casualty offers home and renter insurance benefits to teachers and school support staff. One exciting benefit includes the summer or holiday payment skip option, which can help you manage your monthly budget.
- Horace Mann Educator Advantage: The Homeowner Educator Advantage Endorsement provides additional coverage for educators with an existing Horace Mann policy at no additional cost.
- NEA Membership Benefits: National Education Association members can save hundreds of dollars a year on home insurance just by being members. They may also be able to bundle their home coverage with their car insurance.
Income Taxes
While it can be financially burdensome to pay out-of-pocket for classroom supplies, you should be able to offset some of the costs when you file your yearly income taxes. The educator expense tax deduction allows you as a teacher to deduct classroom expenses provided you meet the following criteria:
- You worked as a K-12 teacher, instructor, counselor, principal, or aide in the tax year you claimed the deduction.
- The school you worked at is state-certified for elementary or secondary education. It can be public or private, but it must be certified.
- You worked at least 900 hours during the entire year as an educator.
Colleges and homeschoolers can’t claim this deduction. While not as good as a tax credit, it can still help professional K-12 teachers at tax time.
Purchasing School Supplies
Many companies offer discounts to teachers purchasing classroom supplies to thank them for their hard work and dedication and to ensure that quality school supplies are available for all students.
Additional Programs, Offers And Discounts
If you’re like most teachers, you’re looking for additional ways to cut back on expenses and make your hard-earned dollars go further. Beyond discounts for insurance, there are other ways teachers can save money through a variety of programs designed to help teachers.
Mortgage Programs
Purchasing a home is a big financial decision for anybody. Still, fortunately for teachers, many organizations offer homeownership assistance in the form of special programs and financing options to make the process a little easier.
- Educator Mortgage Program: Supreme Lending offers this program, which helps educators save money on real estate agent fees and closing costs when purchasing their homes.
- Good Neighbor Next Door: The U.S. Department of Housing and Urban Development’s Good Neighbor Next Door program offers discounts up to 50% off the list price of a home for teachers. Program participants must commit to living in their new home for a minimum of 36 months as their principal residence. Teachers who work with pre-kindergarten to 12th-grade students are eligible.
- Homes for Heroes: Homes for Heroes offers savings for teachers, healthcare professionals, military members, and more, including reduced lending fees.
- Teacher Next Door: All prekindergarten through 12th-grade teachers are eligible to receive several discounts, down payment assistance, grants, and other benefits toward purchasing their next home.
Credit Cards
Credit cards for teachers offer special benefits and deals, such as low rates and special rewards for teachers and school staff, making any teachers’ finances more manageable. Pay off high-interest credit cards and look into credit cards with low interest-and rewards for teachers.
- National Education Association Cash Rewards Card: This National Education Association card offers NEA members a low intro APR, no annual fee, and other valuable benefits. The card also offers teachers up to 3% cash back in the category of their choice.
- Teachers Federal Credit Union Teachers Visa Cash Back Credit Card: The TFCU cash back card offers low rates and gives teachers cash back on everyday purchases, including school supplies and educational programs.Teachers Federal Credit Union
- Teachers Visa Platinum Card: The Teachers Federal Credit Union (TFCU) offers the Teachers Visa Platinum Card, which comes with low rates, special platinum member benefits, and a high credit limit.
Child Care Assistant
According to Brookings, about 48% of public school teachers in the U.S. have children living at home, many of whom require constant supervision. The average child spends 33 hours per week in child care, making childcare assistance a concern for many teachers. While the cost of child care is a concern for most parents, there are some childcare options and programs teachers can take advantage of to ensure the needs of their children are met.
- Child Care and Development Fund: This fund helps low-income families who need help paying for child care. To qualify, you need to be a parent or primary caregiver responsible for children who are 13 years old and younger or younger than 19 if they are incapable of self-care or under court supervision, indicating a need for assistance to pay for child care.
- High School Day Care Programs: A new trend is taking shape: local high schools are providing “early childhood education” programs that benefit teachers and students. With these programs, teachers or other parents can leave their children under the care of students (and qualified supervisors) to teach the students about early childhood education and care.
- Child Care Resource & Referral (CCR&R): This CCR&R search tool can help you find local childcare options around your home or work. You can search by zip code, county, and state, or city and state.
- School District Day Care: Some school districts run child care centers to assist teachers who need child care. These centers operate during school hours, so parents don’t have to pay for holidays or days that their kids don’t need to attend the center, which helps cut down on monthly expenses.
- YMCA Partial- and Full-Day Child Care: Teachers should check their local YMCA for services like early learning and child care, virtual learning spaces, and out-of-school programs.
Finding Debt Support
Debt is a serious financial challenge that many Americans, including teachers, face. Understanding where debt comes from and how deeply it impacts overall financial wellness is a critical step in eliminating it. Student loans, credit cards, and car and home purchases are all common contributors to debt, but there are many resources available to teachers looking to decrease their debt.
Student Loan Forgiveness Programs
Teaching requires a bachelor’s degree at minimum, and many teachers rely on student loans to pay for their higher education. However, there are resources teachers can use to ease the burden of student loan debt and, in some cases, get their federal student loans canceled or forgiven.
The Teacher Loans
The Teacher Loan Forgiveness Program provides forgiveness of up to $17,500 on Subsidized and Unsubsidized Direct Loans and Federal Stafford Loans. To be eligible, teachers must have taught full time for a minimum of five complete and consecutive academic years in a low-income school, among other qualifications.
Public Service Loan Forgiveness Programs
The Public Service Loan Forgiveness Program forgives loans for full-time employees who work for federal, state, local, or tribal government or nonprofit organizations, including teachers. Applicants must have made a minimum of 120 qualifying payments toward their loans to be eligible.
Perkins Loans Cancellation
Graduates can qualify for up to 100% of their Federal Perkins Loan cancellation if they have served full time as teachers in a public or nonprofit school, serving low-income families or special education students. Teaching in subjects experiencing teacher shortages can also qualify for full or partial loan cancellation.
Teachers may also be eligible for overseas opportunities. They are highly sought-after professionals and can secure employment in any location they desire.
Disclosure: This information is for educational purposes only and should not be construed as financial advice. Please consult with a qualified financial advisor before making any investment decisions.
About Author
Bill Wallace blends his academic background in Literature with his ventures in International Business and finance. His professional journey took him across Europe, especially in Spain, where his passion for writing evolved. Since then, armed with his literary finesse and investment acumen, he has been crafting financial content for teachers worldwide. More about me.
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