Teachers Can Be Financially Fit: Economists’ Advice for Educators

Preface
	What Teachers Tell Us
	Reference
Contents
1: Yes, Teachers Can Be Financially Fit
	1.1	 Teacher Case Study: Makayla, the Unexpected Philanthropist
	1.2	 It’s Not All About the Money; It’s About Happiness
	1.3	 Finding a Financial Adviser
	1.4	 The Scorecard: Net Worth
	1.5	 Teacher Tip Sheet: Yes, Teachers Can Be Financially Fit
	1.6	 Q&A
	1.7	 Financial 911 for Teachers
2: Spending and Saving: A Guide for Teachers
	2.1	 Teacher Case Study: Liam Discovers Ways to Create Value
	2.2	 Budgeting for Life: Mapping Out Success
		2.2.1	 Let’s Get Started and Set Some Goals
		2.2.2	 Spend Less Than You Earn
	2.3	 Objective: Budget for Life and Analyze Tradeoffs
	2.4	 Objective: Maximizing Income and Benefits
		2.4.1	 Extra Income
		2.4.2	 Saving Regularly: Build a Rainy-Day Fund
	2.5	 Save Regularly and Invest: Compounding Interest
	2.6	 Spending Purposefully
	2.7	 Conclusion: Saving and Spending for Life!
	2.8	 Teacher Tipsheet on Spending and Saving
	2.9	 Q&A
	2.10	 Financial 911 for Teachers
3: Earning Extra Income
	3.1	 Teacher Case Study: Eric’s Story
	3.2	 Invest in Yourself
		3.2.1	 Investing in Human Capital
		3.2.2	 Comparative Advantage
	3.3	 Part-Time Work
	3.4	 Try Your Hand as an Entrepreneur
	3.5	 Tips for Starting a Business
	3.6	 You May Need to Move
	3.7	 Conclusion: Teachers and Income
	3.8	 Teacher Tipsheet: Earning More Income
	3.9	 Q&A
	3.10	 Financial 911 for Teachers
4: Teachers’ Wheels: Cars and Transportation
	4.1	 Teacher Case Study: Different Car Paths for Terry and Megan
	4.2	 A Love Affair?
		4.2.1	 You’ve Got to Be There
		4.2.2	 The “Happy-o-Stat” Applied to Cars
	4.3	 The Wealth-Building Power of Good Car Choices
	4.4	 Reliability, Used Cars, and Contingency Planning
	4.5	 Shopping and Buying: Two Principles
	4.6	 Terry’s Problem
	4.7	 Teachers and Negotiating
		4.7.1	 Negotiating Strategies
		4.7.2	 The Dangers of Long Loans
	4.8	 Car Maintenance
	4.9	 The Endgame: When to Let It Go
	4.10	 Conclusion: Teachers and Cars
	4.11	 Teacher Tipsheet on Cars and Transportation
	4.12	 Q&A
	4.13	 Financial 911 for Teachers
5: Walls and a Roof: Housing for Teachers
	5.1	 Teacher Case Study: Too Good to Be True?
	5.2	 A Roof Over Your Head: Rent or Buy?
		5.2.1	 Advantages of Buying
		5.2.2	 Advantages of Renting
	5.3	 How Much Can You Afford (Should You Stretch)?
	5.4	 The “Happy-o-Stat” Applied to Housing: Location, Location, and Location
	5.5	 Mortgage Loans
		5.5.1	 Size of the Down Payment
		5.5.2	 Length of the Loan
		5.5.3	 Deciding on the Mortgage Loan
	5.6	 House-Hunting, Start to Finish
	5.7	 After You Move In
	5.8	 Avoiding Refinancing Traps
	5.9	 When You Sell
	5.10	 Conclusion: Teachers and Housing
	5.11	 Teacher Tipsheet on Housing
	5.12	 Q&A
	5.13	 Financial 911 for Teachers
6: Managing Credit and Debt
	6.1	 Teacher Case Study: The School Human Resources Department
	6.2	 Credit Matters
	6.3	 Is Credit from Heaven or Hell?
	6.4	 Common Forms of Credit
		6.4.1	 How Credit Works
		6.4.2	 How to Get Credit
	6.5	 Credit Reports and Scores
		6.5.1	 What Is a Credit Report?
		6.5.2	 Your Credit Score
	6.6	 Conclusion: Teachers and Credit
	6.7	 Teacher Tipsheet on Using Credit and Obtaining Debt
	6.8	 Q&A
	6.9	 Financial 911 for Teachers
7: Investment Basics for Teachers
	7.1	 Teacher Case Study: Emma Loves Tech
	7.2	 Three Rules
		7.2.1	 Rule 1: Start Early
		7.2.2	 Rule 2: “Buy and Hold”
		7.2.3	 Rule 3: Diversify
	7.3	 Forms of Saving and Investing – Safe Investments
		7.3.1	 Savings Accounts
		7.3.2	 Certificates of Deposit
		7.3.3	 Money Market Mutual Funds
	7.4	 Forms of Saving and Investing – Riskier Investments
		7.4.1	 Bonds
		7.4.2	 Stocks
		7.4.3	 Real Estate
	7.5	 Risk and Reward
	7.6	 Mutual Funds
	7.7	 Exchange Traded Funds (ETFs)
	7.8	 Conclusion: Teachers and Financial Security
	7.9	 Teacher Tipsheet on Building Wealth for the Long Term
	7.10	 Q&A
	7.11	 Financial 911 for Teachers
8: Retirement for Public School Teachers
	8.1	 Teacher Case Study: Tom Turns Out to Be Terrific at Getting a Comfortable Retirement
	8.2	 How a Traditional Teacher Pension Works
	8.3	 Retirement Realities: Understanding Teacher Plans
	8.4	 When Should You Retire?
	8.5	 Understand Your Social Security Choices
	8.6	 Considering Other Sources of Income
	8.7	 Conclusion: Teachers and Financial Security
	8.8	 Teacher Tipsheet on Public School Teacher Retirement
	8.9	 Q&A
	8.10	 Financial 911 for Teachers
9: Saving for Retirement: Options for Charter and Private School Teachers
	9.1	 Teacher Case Study: Donna
	9.2	 Charter School Teachers
	9.3	 Private School Teachers
	9.4	 Tax Advantaged Retirement Accounts: 403(b) Plans
	9.5	 Tax Advantaged Retirement Accounts: Individual Retirement Accounts
		9.5.1	 Traditional IRA
		9.5.2	 Roth IRA
	9.6	 Self-Employed Retirement Saving
	9.7	 Contributing to Multiple Accounts
	9.8	 Asset Allocation
	9.9	 Teacher Tipsheet: Retirement for Private and Charter School Teachers
	9.10	 Q&A
	9.11	 Financial 911 for Teachers
10: The Higher Education Connection
	10.1	 Teacher Case Study: Margaret Wonders What Went Wrong
	10.2	 Paying Down Student Loan Debt
		10.2.1	 How Much Do You Owe?
		10.2.2	 Repayment Plan
		10.2.3	 Pay More Than the Minimum
		10.2.4	 Refinancing
	10.3	 The Economics of Tenure
		10.3.1	 Arguments for Tenure
		10.3.2	 Arguments Against Tenure
	10.4	 Retirement Planning
	10.5	 Opportunities for Earning More Income
	10.6	 Teacher Tipsheet: Suggestions Regarding Consulting Income
	10.7	 Q&A
	10.8	 Financial 911 for Teachers
	Reference
11: Educators and Insurance
	11.1	 Teacher Case Study: Doing Everything Right and Getting It Wrong
	11.2	 Risk and Insurance
		11.2.1	 How to Manage Risk
		11.2.2	 How Insurance Works
	11.3	 Strategy for Good Insurance Decisions
		11.3.1	 Car Insurance
		11.3.2	 Insurance at Home
		11.3.3	 Life Insurance
		11.3.4	 Health Insurance
	11.4	 What Jayden and Alyssa Did Wrong
	11.5	 Conclusion: Getting a Good Deal
	11.6	 Teacher Tipsheet on Insurance
	11.7	 Q&A
	11.8	 Financial 911 for Teachers
12: Unconventional Risk Management
	12.1	 Case Study: Penelope’s Life Changes Suddenly
	12.2	 Managing Unconventional Risks
	12.3	 Be Prepared
		12.3.1	 Place All Important Documents in One Place
		12.3.2	 Have an Updated Will
		12.3.3	 Advance Directives
		12.3.4	 Insurance
	12.4	 Plans to Manage Your Financial House When the Unexpected Happens
		12.4.1	 Income Risks
		12.4.2	 Expense Risks
		12.4.3	 Credit and Debt Risks
		12.4.4	 Asset Risks
	12.5	 Conclusion: Unconventional Risk Management
	12.6	 Teacher Tipsheet on Unconventional Risk Management
	12.7	 Q&A
	12.8	 Financial 911 for Teachers
13: Teachers in a Market Economy
	13.1	 Teacher Case Study: Teaching in the Developing World
	13.2	 Natural Resources Paradox
	13.3	 Market Economies
		13.3.1	 Prices as Signals
		13.3.2	 Prices Are Incentives
	13.4	 Voluntary Exchange: The Haircut
	13.5	 The Profit Motive
		13.5.1	 Private Ownership
		13.5.2	 Economic Institutions
	13.6	 Why Do People Make What They Make?
	13.7	 Labor Markets
	13.8	 How to Increase Your Income
	13.9	 Conclusion: The Market Economy
	13.10	 Teacher Tipsheet on Participating in a Market Economy
	13.11	 Q&A
	13.12	 Financial 911 for Teachers
14: Don’t Keep It a Secret
	14.1	 Teacher Case Study: Anthony’s Story Shows How Teaching Can Change Lives
	14.2	 About Teaching Students to Be Financially Fit and Available Resources
	14.3	 Teach Others About Financial Fundamentals: Resources
		14.3.1	 Council on Economic Education Resources
		14.3.2	 Federal Reserve System Resources
		14.3.3	 Junior Achievement Resources
		14.3.4	 Other Resources
	14.4	 Teachers Engaging Parents
	14.5	 Teachers Helping Other Teachers and Others in Their Schools
	14.6	 Conclusion
	14.7	 Teacher Tipsheet: Don’t Keep It a Secret
	14.8	 Q&A
	14.9	 Financial 911 for Teachers
	Reference
Index