What Is Your New (School) Year Resolution?

Pool toys to pencils

In my local big box supermarket, the seasons have changed. Despite weeks of summer still in the tank, beach toys have given way to Pee Chees and lunchboxes. While the retail industry may call it Back To School, as educators, we’re approaching another New (School) Year.

For virtually all of my life, the school year defined my personal calendar. Before I entered kindergarten, summer meant my dad, a teacher, was at home during the day instead of just evenings and weekends. When I became a student, September signaled another new year from kindergarten through graduate school. Once I got my teaching certificate and my first teaching job, I put in almost 30 years working September to June (or July when I became an administrator.)

For these reasons, celebrating the new year on January 1st (or the Lunar New Year) always seemed out of place. For all practical purposes, my new year began either in August or early September, depending on the district calendar and which educator hat I was wearing at the time.

Even though I am now a Free Range Educator and don’t belong to a school or district, a lifetime spent as a student, educator, and administrator makes this time of year uniquely special. For me, it remains a new year, even if I’m not returning to work in a school or office.

My new school year resolutions

While I can’t say that I was a particularly ‘goal-y’ person, each new school year represented an opportunity to take stock and identify some growth opportunities. Throughout the years, I would make informal new school year resolutions.

As an elementary student, it was usually something about getting along with Mrs. Stolee or Mrs. Hughes. Because they were perceived as ‘the mean teachers.’ (We got along fine.)
In junior high, it was likely about improving my dorky wardrobe and my social status as a Shumway Trojan. (Nothing but fear and loathing.)
In high school, it was all about grades. That, and trying to navigate my relationship with the girl that I went to prom with. (We’ve pretty much been together since then.)
In college, it was about sorting out what I wanted to be when I grew up. And where I wanted to go to school next. (I went to three different colleges in four years.)
In grad school, it was about getting a teaching job. (And a real paycheck.)
And as an educator, new adoptions, renovations, strategic plans, and/or bosses often guided my professional goals for the year. (For better or worse.)

The new school year is one of the reasons that I’m launching FIRE Me | Financial Intelligence for Educators now. While I’ve been writing posts and learning WordPress for some time, it only seemed appropriate to begin 2024 (the school year) with this new adventure.

What’s your new (school) year resolution?

Whether you are returning to a classroom, cubicle, or school office, I’d like to challenge you to make a financial resolution for this new school year. I know that this time of year is hectic as kids, parents, and staff are returning. But the following suggestions are relatively simple, concrete, and can help you begin your school year on a stronger financial footing for the future. And for every idea, there is at least one FIRE Me post to get you started!

Start an emergency fund

In Why Educators Need an Emergency Fund, I share the persistent statistic that, “…as of January 2023, 57% of Americans can’t afford a $1000 emergency expense.” I write that,

“An emergency fund is a savings account to cover unexpected costs. It’s also a simple way to build your financial intelligence and independence, offering you a win-win-win. Here’s why.

Having ‘money in the bank’ can help pay for a new dryer when the old one dies vs. adding the cost to your already heaving credit card balance.
Due to recent increases in interest rates, many savings accounts offer some level of return on your money. Even though these rates may not keep up with inflation, they are far better than what existed a few years ago when savings interest rates were at or near zero.
Any contribution to savings builds your personal or household net worth.”

An emergency fund is like a personal finance go bag. You pack it and hope you don’t have to use it. But when you have an unexpected expense, you’re glad you have one.

You. Can. Do. This.

Now: If you don’t have an emergency fund, start one. Deposit or transfer some money to get it started. $50 is good. $100 is great. $500 is awesome.

Next: Set up an automatic transfer at your bank or credit union for $50 a month to go into your emergency fund to build on your initial investment.

Embrace your pension

In Three Reasons Why You Should Hug Your Pension, I write, “For most American adults, Social Security is the only ‘guaranteed’ retirement income source outside of personal retirement savings and investments….educators are some of the last workers who have access to and can benefit from retirement pensions.”

Unfortunately, pensions can be confusing. And because most adult workers don’t have them anymore, finding good information about pensions is difficult. That’s why I wrote not one, but three posts to help you better understand your educator pension.

You. Can. Do. This.

Now: Scan or read my posts on pensions. They are listed below from basic to advanced.

Next: Set up an account and/or log onto your pension website. When you’re in, check to make sure your personal information is up to date and that your service history is accurate.

Start (or jump start) your retirement investments

In Four Legs are Better Than Two When Planning Retirement, I explore retirement planning and introduce a four legged approach that complements your pension and Social Security benefits with additional investments to provide security and flexibility. While non-educators likely have investments in 401(k) retirement plans, educators normally work with 403(b) and 457(b) plans.

Supplemental retirement (and other) investments are an essential puzzle piece for financial independence. Unfortunately for educators, it can be hard to find good information to sort out what options are available. While I can’t offer up an Easy Button, I can help you get on the right path to find more information in order to make good decisions about saving for your future.

You. Can. Do. This.

Now: Find out what 403(b) or 457(b) providers are offered in your district or system. If you’re confused, you can read Tax-Advantaged Investments for Educators. It’s got a good beat and you can dance to it.

Next: Identify one or more investment options to research online. If necessary, call or make an appointment to meet with a representative to answer questions you may have.

Pay yourself forward

For 30-some years, I returned to school (or central office) after the summer break with a blend of anticipation and that feeling of ‘ugh, I have to go back to work.’

In many ways, this is what financial intelligence is all about. There is work associated with understanding and managing your personal finances and planning for a future that can be hard to make time for in the present. Truth be told, there are more than a few ‘ugh’ things that are part of personal finance.

At the same time, we all have financial goals that we aspire to.

Saying goodbye to student loans
Paying your monthly credit card balance in full
Sending a kid to college
Buying a home
Paying off a mortgage
Becoming debt-free
Retiring (early, on-time, or at all)

As I share in other posts, my path to financial intelligence and independence included almost all of the items above. None of them happened overnight. Like putting in another year as an educator, new learning, small resolutions, and changes to my habits (both good and bad) helped build wealth, confidence, and financial maturity.

So as you return to school and settle into a new school year, I challenge you to pay it forward in one small way by taking care of your financial self.

Then you can get back to the great work you do with kids, parents, colleagues, and your community. FIRE Me will be here when you’re ready for more!

Happy New (School) Year!