Congrats! The ink is still wet on your first contract. You are nervous and excited at the same time. You’re about to be in charge of a room full of kids who will want to push your limits on a daily basis, but that’s not why we are here. We are here to talk about the things they don’t teach you in teacher prep classes. What decisions do you have to make outside the classroom?
Human Resources (because that’s what you are now)
The first person you will meet after you are hired will be the district human resources person. They will be the ones to “guide” you through all of the paperwork that we will be talking about.
Some questions that will be very important to ask:
- What will you enter in your W-4?
- What is the frequency of pay? Monthly? Bi-Monthly? Every 2 weeks?
- Can you split your paycheck into multiple accounts?
- How is summer pay handled?
- How much are union dues?
- How often are they deducted?
Let’s tackle each of these questions one at a time…..
W-4
The W-4 is the first step in that joyous process of paying taxes. The best thing to do is to go to the IRS Withholding calculator. This site will give you the “best” idea for setting up your withholdings. I say best because with the recent changes in the tax laws, it was a point of angst this past year that the withholding calculator might not be completely accurate.
Pay Frequency
This question is pretty straightforward. Some school districts will pay once per month. Others will pay twice a month. Others might pay every other week. This isn’t a major concern once you get going but at the start chances are you’ll be a paycheck to paycheck person. Which is what this blog will work to correct….. The timing of your first check will surprise you. Typically, every month you get paid for the previous months work. So, say you start teaching mid August, that very first check isn’t coming until mid-September so brace yourself. Those first couple months will be financially stressful. You will also need to ask if you are paid over 10 months or over 12 months. If you are paid over 12 months, no worries. If they pay over 10 months, make sure to carefully read the next paragraph…
Paycheck Split
This is an important question to ask yourself. Most people will opt to have their whole paycheck deposited right into their checking account. I’ll ask that you press pause and think for a second. Automating your savings makes it much easier and more effective for you. After figuring your budget, determine how much you can afford to put into savings. Have that amount sent directly to a separate savings account you have set up. Personally, I currently send $200/month sent to a separate savings account with our teacher credit union. This account isn’t one that I can go online and transfer money. I have to physically call them and order a check withdrawal that is mailed to me. Sounds time consuming right? Well that’s the point! I want it to be a little painful to get that money out. If it is too easy, then I’ll be tempted to use that money on an impulse purchase. Something to think about…
Summer Pay
After my first year of teaching, I had accepted a position with another district. The district I was at thanked me for my year of service and handed me three paychecks on my last day of workshop. June. July. August. That district was one that paid us monthly. On that last day, I was given all three months of paychecks. Imagine handing an impulsive 23-year-old 25% of their yearly salary all at once! Luckily, I showed some restraint and waited to deposit each check until the first of each month.
Union Dues
Since the Supreme Court’s Janus Decision in 2017, union membership has become highly political. The T.A. and I are members of our union, but that is a decision that you must make for yourself. We will discuss our view of union membership in a later post. If you do decide to join, you will need to find out the total dues and how they are deducted. Each district does it differently. In our district, union dues are only deducted from our paychecks during the school year, so our checks in the summer are a little bit bigger.
In Summary
The last thing on your mind when you get that first job is the stuff outside the classroom, but that’s exactly where your focus needs to be. At least until all of these points are covered.
This gives you a good start on your path to financial stability. Our next post will deal with an the first step to financial freedom… BENEFITS!
Keep Stackin!