Only 71% of U.S. workers earn stable, full-time pay year-round according to the Bureau of Labor Statistics. This leaves nearly a quarter of the workforce with irregular income and the financial instability that comes with it.

Financial instability and income irregularity apply to various professions, including seasonal and gig workers. However, the issue is especially pressing with educators. Roughly 22% of teachers are only paid during the 10-month school year, leaving a two-month gap in earnings every summer according to the online resource platform, We Are Teachers. This is despite the fact educators often spend their summers preparing for the next school year.

So it’s no surprise that income-related anxiety is especially common among educators. A recent Stanford-led study showed that nearly half experience frequent financial anxiety compared to only 17% of the general population.

This financial stress can significantly impact job performance and overall well-being, making it crucial for employers to find ways to support educators earning irregular incomes. Here are four simple ways employers can help.

1. Encourage budgeting and savings plans for your employees with irregular income

One of the most practical ways for employees with fluctuating incomes to gain financial stability is strategic budgeting. Employers can offer guidance on creating a budget that accounts for months of high and low income. Then, take pains to help employees to avoid financial stress during low-income periods. Financial advisors have recommended identifying months when income is expected to dip and planning spending accordingly. This approach to budgeting can prevent unexpected expenses from throwing an employee’s finances off track​.

Additionally, setting aside a portion of higher earnings during peak months can create a cushion during lower-income periods. Employers can support educators by providing access to budgeting workshops or digital financial tools like those included in Best Money Moves. Creating a workplace culture that promotes financial security and preparedness can alleviate stress and help employees feel more confident in managing their futures.

2. Support employees in building an emergency fund

Emergency expenditures can cause considerable strain on workers without consistent year-round income. A study from the Aspen Institute shows that many lower-income employees with irregular earnings experience “spending spikes” due to unplanned expenses. For these employees, an emergency fund is a crucial financial safety net​.

To help employees build an emergency fund, employers should offer programs that make this type of saving easier to attain. One way to support your employees is by establishing a payroll deduction program. This would allow employees to automatically put some of each paycheck into a designated savings account. Employers could also match contributions up to a certain amount or offer other financial incentives to encourage these helpful saving habits.

3. Educate employees with Irregular Income about predatory lending options

For employees struggling to make ends meet during low-income months, payday loans or other high-interest lending options can be tempting but often come with steep consequences. Payday loans carry exorbitant costs, with an average annual percentage rate (APR) of roughly 400% and some reaching as high as 600% according to the Consumer Protection Financial Bureau. These loans can quickly become a trap, as over 80% of payday loans are either rolled over or followed by another loan within two weeks, leading to a cycle of debt that is difficult to escape​.

Employers can play a crucial role by offering financial education through programs like Best Money Moves that highlight the risks of payday loans. Additionally, they can point employees toward safer alternatives, such as credit unions, low-interest loan programs or paycheck advance services, all of which provide more secure options for managing financial strain during challenging times.

4. Invest in employee financial wellness

Financial wellness programs are one of the most effective ways employers can support employees with irregular incomes. They offer tools designed to help employees manage their financial lives effectively such as budgeting, saving and debt management tools, customized user journeys, and articles that guide employees through common financial challenges.

Programs like Best Money Moves have also been shown to improve employee retention and morale. In a recent Bank of America study, 84% of employers noted that these programs help keep employees engaged. Financial wellness programs can be particularly impactful for teachers, who face unique challenges. Around 71% of teachers with student loan debt have considered quitting or changing careers due to financial stress according to a study.com survey.

By reducing financial stress, employers can help employees spend less time stressed about money and improving quality of life.

Looking for a fintech solution to support your employees? Try Best Money Moves!

Best Money Moves is an AI-driven, mobile-first financial wellness solution. BMM is designed to help employees with varying experience dial down their financial stresses. Best Money Moves offers comprehensive support toward any money-related goal. 

Our dedicated resources, partner offerings and 1000+ article library make Best Money Moves a leading benefit in bettering employee financial wellness. To learn more, contact us at customersupport@bestmoneymoves.com and we’ll reach out to you to schedule a call!