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Financial Planning for Educators
Educators have a lot of responsibilities that include planning lessons, preparing for parent-teacher conferences, and creating learning resources. As educators, we work long hours in school and at home to complete our lesson plans or portfolios. At work, we learn how to hold our pee till the next teacher takes over the class, we carry our infants and preschoolers, we climb up and down to decorate the classrooms and the lists go on.
I didn’t know how to manage and every trip to Daiso was filled with ideas on what I could do to enrich my lessons. Most of the time, we don't claim for it cause it is just a small amount.
I wish I knew this earlier, and here are some tips to start taking care of your finance.
Start by tracking your monthly expenses to understand where your money is going. Then build a financial plan for your daily expenses, savings and protection. You can keep a simple journey to track your expenses.
Instead of reaching into your pocket to get the resources you want, there are Facebook communities like Art Don’t Throw, where you can request resources. You can also reach out to your student’s parents, shops and also companies to get the resources you want. Preschool Market (Kindred Studio) runs a recycling resource hub to which you can reach out to them!
As part of good financial health, set a fixed amount to save every month. If you have two bank accounts, set up an option where a certain amount will be auto transferred into this saving account. Take a small step, even if you are just saving your bubble tea money.
Protection plans help us to pay for our expenses when we are unable to work due to Total and Permanent Disabilities (TPD) or when are diagnosed with a critical illness. There are protection plans that fit different budgets - Whole Life Plan or Term Plan. You can review your Integrated Shield Plan for your hospital needs based on the type of treatment you would like to be covered.
Long-Term Disability Insurance gives you a monthly salary when you are unable to perform 2/3 out of 6 Activities of Daily Living (ADLs). It will continue to give you the monthly salary that you have chosen for as long as you are medically certified. Thankfully in Singapore, we can enhance our CareShield Life and up to $600, which can be paid via Medisave.
From the funds you set aside, invest the funds for your retirement or your child’s education. Most investment plans have about 3 to 20 years of premium term. It is always good to save when you are still working. A good time horizon for saving plans will be 10 years. You need a long time horizon to be able to see your returns.
These are the taboos, the unspoken “Choy!” However, these are important as part of our financial planning and for our family. Without proper planning, your family members will be delayed in receiving payments that are used to offset hospital bills or for their daily expenses. It could also save your family money as, without Wills and LPA, your family may have to pay up to 6% of the lawyer fee for the process.
You should always re-examine your finances to make sure your expenses are within your ability and to make sure you are not overcommitting on your liabilities. Take control of your finances and you win half the battle.
As educators, we are so good at planning resources, and budgeting for excursions and activities for our preschoolers but, we forgot how important to plan for our own financial needs.
I help educators by reviewing their policies to ensure they are not overpaying as I have access to policies from different companies. I recommend only based on the financial situation for your needs. I offer suggestions on increasing cash flow, show you what is available, and review your current situation.
