Financial Wellness Spotlight: 4 Surprising Reasons Educators Need Support
Teachers are trusted with shaping the minds of the next generation. But behind the scenes, many struggle with financial wellness, which impacts job performance and well-being.
A Stanford-led study revealed that nearly half of teachers surveyed were frequently anxious about their finances, compared to only 17% of the general population. Another study showed that teachers experiencing financial anxiety were 50% more likely to leave their jobs within two years as well as having worse attendance records. Both of these could negatively affect student performance.
With teachers’ financial burdens mounting, financial wellness programs are essential. However, many teachers do not get the help they need. According to RAND Corporation, about 35 percent of teachers report that they do not have access to or are unaware of employer-provided mental and financial health supports.
Here are four reasons why financial wellness programs like Best Money Moves are vital for educators.
1. Educators often struggle more with financial wellness than professionals in other industries
On the whole, educators may experience higher levels of financial stress than other professionals. This trend may be due to a number of factors including lower salaries, rising inflation and the added burden of classroom expenses. According to the National Center for Education Statistics, 94% of teachers report spending their own money on classroom supplies. Additionally, inflation-adjusted earnings show that, adjusted for inflation, teachers are bring home $2,179 less per year than they did a decade ago.
Because of stagnant salaries, educators face challenges not only in managing their daily finances but also in planning for larger expenses. This financial pressure can lead to high levels of stress, which negatively affects their ability to focus and teach.
A targeted financial wellness program like Best Money Moves resources and tools to help teachers navigate their finances. Best Money Moves includes a “Stressometer,” an interactive measurement tool that gauges financial stress. It then offers personalized suggestions to resolve the user’s financial issues.
2. Financial education can help teachers understand their unique retirement and health insurance plans
Teachers also have unique and complex retirement and health insurance plans that can be difficult to navigate. According to the National Center for Education Statistics, roughly 90% of public school teachers are enrolled in defined-benefit pension plans, which guarantee a set retirement payout. However, only about half of teachers remain in the profession long enough to qualify for full pension benefits. Many educators do not understand how their pension plan works and therefore do not take full advantage of it.
Health insurance costs are another area where teachers often face significant financial stress. Since 2018, the average monthly premium educators pay for health insurance has risen faster than their salary increases. Because of these high costs and their low salary, nearly half a million teachers do not have access to health insurance, compounding their financial difficulties.
3. Financial wellness programs can help with teachers’ student loan debt
Student debt is easily one of the largest problems most educators face. According to a survey by Study.com, roughly a quarter of all teachers have more than $40,000 in federal student loan debt and 23% have between $30,000 and $40,000. This debt can easily take a decade to pay off, which could potentially be even more difficult given teachers’ lower salary.
The financial burden of student debt is a major contributor to teachers’ turnover rate. 71% of teachers with student loan debt are considering quitting due to financial stress. However, through effective budgeting and student loan management, these stresses can become more manageable.
4. Because some teachers are only paid seasonally, budgeting tools help their financial wellness by accounting for their irregular income
Because most educators only teach during the school year, it can be very difficult for them to budget effectively. Many educators are only paid during the school year, leaving them without income over the summer months. As a result, one in five teachers takes on a second job during the summer to make ends meet.
However, this time off isn’t entirely free from responsibility. Nearly all teachers continue to work informally over the summer, preparing their classrooms or purchasing supplies, which can put further strain on their finances.
Financial wellness programs like Best Money Moves offer budgeting tools that can help teachers manage their finances throughout the year. These tools can help teachers create effective plans for saving during the school year to cover expenses in the summer months when they are not receiving a paycheck. By providing tailored budgeting advice, financial wellness programs can help educators achieve financial stability.
Looking for the right wellness benefit in 2025? Try Best Money Moves.
Best Money Moves is an AI-driven, mobile-first financial wellness solution designed to help employees with varying levels of financial knowledge dial down their most top-of-mind financial stresses. As an easy-to-use financial well-being solution, Best Money Moves offers comprehensive support toward any money-related goal, ranging from debt management to purchasing a home. With 1:1 money coaching, budgeting tools and other resources, our AI-driven platform is designed to help bolster employee financial wellbeing.
To learn more about Best Money Moves Financial Wellness Platform, let’s schedule a call. Contact us and we’ll reach out to you soon.
