While public school teachers enjoy hefty benefits including mid-year and year-end bonuses, performance-based and productivity-enhancement incentives, personal economic relief and clothing allowances, and many others, many private school teachers whine over low salary rates and limited benefits packages. Click link to read and find out How Much Private School Teachers Make.
Millennial teachers are also economy participants whose participation entitles them to occasional splurging on latest fashion and gadgets, budget stretch whenever expenses exceed paycheck, and debt struggles after costly hospitalizations of family members.
Given these instances, teachers also require a background on financial principles including saving and building emergency funds, engaging in and paying off debts, cutting expenses, taking advantage of compound interests, and making wise investments as grounded on the increasing value of money capital and other tangible assets over time.
In this article, I’ll walk you through the eight (8) investments that are always worth suggesting to millennial school teachers, both public and private, in the Philippines or elsewhere. As a non-expert teacher investor, I advise readers to do further research and consultations with financial experts for more informed investment advice.
(1) Continuing Education and Professional Development. Schools and universities need highly qualified and expert educators to improve the quality of education. Usually, promotions in the academe, that equate to better compensations, are mostly based on advanced graduate degrees. Teachers, who plan to dedicate their entire life to teaching, must then consider continuing education and professional development a premier investment.
(2) Building Professional Network. Expanding professional network has always played a vital role throughout teachers’ career. Teachers need to reach out and connect not only with their colleagues but with other professionals. Not only building a more collaborative school atmosphere, an expanded professional network brings more personal and professional opportunities, hence another practical investment.
(3) Getting Financially Literate. As I have always advocated, financial literacy must be on the forefront of education and economic policies. Teachers, being the front liners, must be armed with a sound financial background. According to Investopedia, the world’s leading source of financial content on the web, financial literacy is the confluence of financial, credit and debt management and the knowledge that is necessary to make financially responsible decisions—decisions that are integral to our everyday lives.
Other personal finance articles worth reading:
- 27 Passive Income Ideas and Other Opportunities for Teachers
- 20 Ways on How Teachers Can Manage Finances Efficiently
- 15 Frugal Practices of Financially Literate Teachers
(4) Maintaining Health and Wellness. Although most public, even private, school teachers have health cards and health insurance policies, in addition to usual PhilHealth benefits, to cover costly hospital expenses whenever unexpected circumstances happen, they must always invest in physical and psychological health. However tight schedules are, they must find time for daily fitness routines and assessment of healthy diet.
(5) Maximizing Retirement Contributions. Unfortunate turn of events might fall to teacher retirees as what happened to the former teacher and principal, Pacita Piano, who lost all her pension fund from her 40 years of government service. Aside from Government Service Insurance System (GSIS) and Social Security System (SSS) retirement funds, millennial teachers should also consider maximizing retirement contributions through different investment vehicles that promise secure long-term returns.
(6) Acquiring Real Estate Properties. As I have written, real estate as an investment can sometimes worth a good argument. Generally, buying a real estate property such as a house, a condo unit, or a parcel of land solely for residential purposes does not qualify a good investment rather a possible liability. Then again, it can be a profitable investment if it promises income from rentals and price appreciation. Teachers can make investments in real estate properties, also for retirement preparations, whenever having a salary lump sum or even through amortizations.
(7) Buying and Holding Blue-Chip Equities. Investing in stocks may pose an extremely high investment risk, but this should not prevent teachers from allotting another fraction of investment. With sophisticated technology, millennials can easily access credible resources on stock investment and manage stock portfolios at their own comfort. Interestingly, teachers can purchase shares of blue-chip stocks issued by giant companies that have been in operation for over generations. Aside from blue chips, there are also tradable education and school stocks from for-profit schools and universities.
(8) Making Short-Term Investments. While teachers receive regular compensations, savings can be dished out to short-term liquid investments that promise higher interest rates than what can be earned from regular savings accounts. Short-term liquid investments include high-yield certificates of deposit or CD’s, money market funds, treasury bills, and bonds.
Making investments can be an informed move to build wealth, but it is not only for the wealthy. Yes, teachers may not have large capital to purchase huge investments but always have the opportunities, through these suggestions, to improve their economic conditions. Therefore, making wise investments can be a proactive response of millennial teachers to their less satisfying yet decent salary rates.