Advice For Someone Starting a New Teaching Career In Minnesota
A few weeks ago, I had the honor of presenting to a class at a local university. These students had just finished their student teaching, making this their last class before entering the "real world." I met the professor while mentoring a student teacher, and she invited me to give a presentation on Minnesota TRA and teacher pensions/retirement in general.
Here are a few key points I shared, which I believe are crucial for anyone entering the teaching profession. These topics aren't typically covered in teaching classes, but they will significantly impact your life and future.
1. SET UP YOUR RETIREMENT ACCOUNTS
Typical 403(b) reps
As a new teacher, it's essential to visit your business office immediately and set up your 403(b) or 457(b) accounts. This is crucial because the earlier you start, the more time your investments have to grow. Time is your friend when investing. While most districts provide information, it's up to you to learn about these accounts on your own. Talk to other teachers in your district; often, there's someone who is the "go-to" person for financial advice.
Avoid financial "advisors" who come to your school to present their products. Many of these products are designed to benefit the advisors more than you. Remember Matthew McConaughey's character in "The Wolf of Wall Street" saying, "The name of the game, moving the money from the client's pocket to your pocket." This is how most of these products are designed. Research the vendors your school provides and ask a lot of questions, especially about their fees.
2. SET UP YOUR HEALTH CARE ACCOUNTS
Learn about your school's health care accounts and your options. Like retirement accounts, schools usually don't offer advice on which health care plan to select. Check if your school offers an HCSP or HSA plan and take the initiative to elect your investments. Some career teachers missed out on thousands of dollars in gains because they didn't do this early in their careers.
hospital bills add up as you get older. start preparing for them early!
3. BE PICKY!
Teachers coming into the profession today have a much more wide open job market. When I applied to my current job 25 years ago, I was one of 300 applicants for the position. Today, most schools are lucky to get a handful of applicants, if any! This means that new teachers can be more picky in the jobs that they look for. I strongly recommend looking for jobs in communities that are growing. A growing community usually means a growing school district. This means more money coming into the district and it also means you are less likely to be "cut", or laid off, due to declining enrollment, cutting of programs, or lack of funding. This is a huge concern in many rural schools in the state.
4. BE WILLING TO TALK ABOUT MONEY
Even today, talking about money is often considered taboo. However, wealthy people do talk about money. Many people are embarrassed about their financial decisions or their financial status. Don’t be embarrassed about your financial situation and don’t be jealous of others who may have more. Be open to discussing money, saving strategies, and ways to earn more. I learned at almost 50 that starting an LLC can help you write off many expenses and save on taxes, all perfectly legally!
These are some of the tasks you need to complete as you start your teaching career. Address them right away because once the students arrive, you'll be swamped with teaching duties. Before you know it, the first year will be over, and you might realize you forgot to set up these accounts. Don’t let that happen to you. Be proactive and prepare for your future.
I want to leave you with the final thought I shared with those college students: Nobody will care about your money or retirement as much as you do. Don’t let anyone tell you otherwise, and as always, KEEP STACKIN’!
