A Guide to Managing Finances

As the cost of living increases, teachers and other education staff find it tougher to make ends meet while maintaining an effective work-life balance. With 90% of teachers stating they've experienced elevated work-related stress in the last 12 months, it's clear that money problems could have a severely negative impact on education staff wellbeing.

Wellbeing covers several aspects of life, including overall physical and mental health. However, financial wellbeing is critical because it supports employees' overall health and happiness. School staff pay has been under immense scrutiny in recent months as unions and the government have failed to come to agreements regarding pay. Considering the rate of education staff pay falls well below the rate of inflation in the U.K., these are worrying times for many teachers and teaching assistants. Finding ways to improve your finances could help reduce the burden on your overall wellbeing.

Why is financial wellbeing important?

The U.K. Money and Pensions Service defines financial wellbeing as "feeling secure and in control of your finances, both now and in the future." Everyone aims for that feeling, whether that's via a good salary, regular savings, or the security of arranging a pension.

What this definition doesn't cover, however, is the impact when you don't feel financially secure. Financial wellbeing directly correlates to health outcomes, including both physical and mental health. Current statistics suggest that in financially deprived areas, life expectancy is around eight years less on average than in more affluent areas. A study of 5,500 people showed that 86% of respondents had experienced mental health problems caused or worsened by money problems.

For teachers, financial wellbeing could be the difference between feeling confident and healthy enough to take classes every day and being tired, overstressed, and susceptible to illness. Teachers, unfortunately, have to deal with the impact of the cost-of-living crisis on children, too. Six out of 10 teachers state they've experienced children coming into school hungry, and 63-67% said pupils had no appropriate footwear or clothes that were damaged or dirty.

While teachers can't take away the financial problems of their pupils, there are ways to manage their own finances more effectively. Feeling more in charge of finances can improve overall education staff wellbeing and help head off money problems before they become a source of anxiety.

Financial management tips for teachers

These tips on managing your finances could help you save money and reduce the feelings of helplessness often associated with poor financial wellbeing.

Check your energy usage

Soaring energy bills are a hot topic right now. Electricity prices have risen a shocking 66.7%, while gas has dialled up by 129.4%. Teachers who work from home for many hours, marking and organising paperwork, may use more energy than those who stay at the office for long hours. You can stay on top of your energy bills by:

• Using a smart thermostat to ensure no devices or heating comes on while you're at work
• Staying at work or going to another quiet, safe place, e.g., a library, to finish marking or class preparation
• Using a smart meter to understand what uses the most energy in your home
• Checking with your energy supplier that you're on the best tariff for your usage

You can also gain more advice from the Energy Saving Trust.

Compare providers for multiple services

Find some time to make a list of the services you have in your home/life that you pay for monthly. These may include:

• Personal mobile phone
• TV services
• Streaming services
• Multi-service packages such as Amazon Prime
• Internet
• Insurance
• Services that help with your work or career, e.g., graphic design services like Canva or online storage solutions

For each service, check that you're on the best tariff and with the best provider. Also, try and discover if there are any free alternatives. For example, if you pay for Microsoft 365, you will likely have access to a terabyte of online storage, which might mean you can cancel payments to a separate storage provider.

Insurance providers often cut costs if they think you are leaving, so shop around using price comparison sites to get alternative quotes. It's also worth going to some providers direct to see if the quotes are lower than on the comparison sites. Call your insurance provider and tell them you've found a lower quote. They will often not only match the lower price but beat it.

The same principle applies to mobile phone operators. They're targeted heavily on customer retention rates, so if they can't lower the price of your tariff, they may offer another benefit, such as upgrading early. If this happens, you could try trading in your old phone to get money off your new deal or simply selling it to get some extra cash.

Careful budgeting

One of the best ways to prevent money problems is with proper budgeting. Knowing your incomings and outgoings for each month, you can quickly see how much disposable income you have and where you might need to cut back on spending.

A simple spreadsheet can help here, or you could use the government's Money Helper budgeting tool or a similar digital option.

You can find out more about effective budgeting using the Welbee Toolkit [budgeting link placeholder].

Save for the holidays

School holidays can become expensive, even if you don't actually travel away anywhere. Your energy bills will increase, and you may buy more on-the-go food, tea and coffee or indulge in more leisurely pursuits such as theatre or cinema trips.

To avoid your finances taking a nosedive during the holidays, consider setting up a savings account that you put a set amount into every payday. Set up a standing order so you don't have to remember to do this. You could even talk to your bank or financial advisor about the best type of account to use for this to get the best interest rate and possibly boost your savings.

Keep this account solely for use during the holidays; that way, you can ensure that you can enjoy your time off work without feeling guilty or anxious about overspending.

What to do if you are worried about debt

Dealing with everyday finances can be stressful, and when debt starts to build up, it helps to have someone experienced to talk to and to know where to turn if you need additional financial support.

Ensure you've checked the Help for Households support page to ensure you're already claiming everything you're entitled to from the government. There may also be the option for certain teachers to claim back their student loan repayments.

Talk to a financial advisor, the Citizen's Advice Bureau, or find out if your union offers financial advice.

For teachers and education staff who need help with the essentials, Education Support offer grants. It's worth noting that their application process is taking longer than usual, so make sure you have all the relevant supporting documentation before you get started. The Teaching Staff Trust may also offer grants for those in financial hardship.