Teachers have one of the noblest professions, but they have recently experienced a bad rap, primarily because of their financial habits.
I've also been a teacher for over three years, though I was in tertiary education. Regardless, the experiences are still pretty much the same. Too many teachers are deep in debt, have lavish but unsustainable lifestyles, have no savings and investments, and more.
Ideally, I want to write for most teachers, but at this point, it's hard. Instead, I'll focus on those who just recently got their item and started earning.
Here are some ways to save money if you're a young public school teacher:
#1. Create a budget.
A budget will help you know where your money will go even before receiving it. A Teacher I salary is at SG 11, or P30,024. As you can see, it's not as "small" as people think. It's higher than that of many professionals in various fields.
While this amount is relatively higher, I believe it's still not enough to properly compensate for what teachers' roles in our society mean. Young teachers should learn to budget, allocating a percentage of their salary for wants, needs, and savings.
#2. Track your expenses.
On the flip side of budgeting is tracking your expenses. As a young teacher, you should know where your money goes. This will help you audit your expenses and recalibrate your budget.
#3. Avoid debts and loans.
Huge debt gives teachers a bad reputation, especially since many only earn P5,000 monthly. Can you imagine losing most of your salary for loan payments? It's a systemic issue in the profession that young teachers should avoid. If you want to save money, don't get into debt. Slowly save until you have enough to buy what you want.
#4. Limit lending money to non-payers.
On the other end of the spectrum, teachers lend their co-teachers money they can't afford to lose. Other times, administrators will borrow money from their subordinates, which is considered prohibited conduct. If you want to lend money, lend the amount you're comfortable losing. It's easier to accept once someone doesn't pay.
#5. Limit expenses in luxurious things.
There's a sense of pressure once you see your co-teachers taking lavish loans to buy big-ticket items, like cars or motorcycles, gadgets, dresses and shoes, etc. This habit will only force you toward lifestyle inflation, making it harder to save money.
#6. Save portions of your bonuses and allowances.
Teachers have a lot of bonuses and allowances coming their way every year. Aside from the 13th month and Mid-Year bonus, they also have a Performance-Based Bonus (PBB), Clothing Allowance, Paid Vacation Privileges, Teaching Supply Allowance, Teacher's Day Incentives, Year-End Bonus, Cash Gifts, Productivity Enhancement Incentives, and more. If you could save a portion of these bonuses, you'd save a lot.
#7. Avoid agreeing to become a co-maker.
Becoming a co-maker for your co-teacher's loans is often not a good idea. Regardless of whether they can pay or not, you're putting your name on the line, risking for something you won't benefit from. However, if worse comes to worst, you'll suffer the consequences of paying for someone else's debt you never enjoyed.
#8. Have a separate "helping" fund.
I have high regard for teachers, especially those teaching in far-flung areas. Since they are exposed to the harsh realities of life of poverty, they typically spend their money for their students' food and other expenses. To prepare for these expenses, it's good to allocate a separate fund to extend help.