Top 5 Financial Planning Questions for Teachers

As a former teacher, I’ve heard the phrase, “I don’t make enough to need financial planning,” more times than I can count. I’ve even said it myself. But here’s the truth: financial planning isn’t just for people with huge salaries or massive investment portfolios, it’s for everyone, especially teachers.

In this post, I'll dive into the five key financial planning questions every educator should consider when thinking about your financial future.

But before you start reading, make sure to subscribe to the K-12 Planning weekly newsletter to stay up-to-date on all teacher related financial issues!

5 Financial Planning Questions for Teachers

1. Do You Know Where Your Money Is Going?

The foundation of any financial plan is understanding your cash flow—how much money is coming in and where it’s going out. This starts with a budget.

Let’s say you bring home $8,000 a month. Do you know how much you’re spending on essentials, savings, and discretionary expenses? If you’re not tracking this, you’re missing a key piece of the financial puzzle.

Why does this matter?

Because your spending habits directly impact your retirement goals. If you’re used to spending $3,000 a month, your retirement needs will be much lower than someone spending $10,000. Understanding this now helps you plan for the future.

2. What Will Your Retirement Income Look Like?

As a teacher, you’ll likely have a pension if you retire from education. Depending on your career path, you might also qualify for Social Security benefits if you’ve contributed for at least 40 quarters (10 years).

But here’s the thing, relying on just one or two income sources might not cut it. It’s essential to understand how much income you’ll receive and whether you’ll need additional funds to maintain your desired lifestyle.

3. Are You Saving Enough for Retirement?

Once you’ve figured out your spending (#1) and projected your retirement income (#2), the next step is determining if your current savings will cover the gap.

A popular guideline suggests having 25 times your annual expenses saved by the time you retire. This isn’t a hard-and-fast rule, but it’s a good starting point.

For example, if you need $30,000 per year on top of your pension and social security, then you should aim for a portfolio of roughly $750,000.

If there’s a shortfall, it’s time to consider increasing your contributions to a 403(b), Roth IRA, or other retirement accounts.

4. Are You Adequately Insured?

No one likes to think about worst-case scenarios, but insurance exists to protect you and your family from financial hardship in case the unexpected happens.

As a financial planner, I always review two key types of coverage:

• Life insurance: Protects your family if something happens to you.

• Disability insurance: Replaces your income if you’re unable to work.

  
  

I often recommend purchasing insurance outside of your school district or employer so the coverage stays with you if you change jobs. That said, there are situations where employer-sponsored policies might be the best option, especially if you’re considered uninsurable on the private market.

5. Do You Have Peace of Mind?

Finally, the most important question: Do you feel confident about your financial future?

Financial planning isn’t just about crunching numbers or balancing budgets, it’s about peace of mind. Having a trusted advisor on your side can help you:

• Stay calm during market ups and downs.

• Feel reassured that your goals are achievable.

• To be held accountable for the action items you want to get accomplished.

• Know that someone is thinking about your financial future!

  
  

Final Thoughts

You don’t need to be a millionaire or have it all figured out to start financial planning. My goal is to help everyday people, teachers, public servants, and their families, gain clarity and confidence in their financial lives.

Whether it’s creating a plan to pay off debt, tackling student loans, or preparing for retirement, I’m here to help. Bring your questions, your goals, and even your financial “mess.” Together, we’ll make a plan that works for you.

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David Gourley, CSLP® is the Founder and lead Financial Planner at K-12 Planning, an independent financial planning firm specializing in finance for teachers. He served for eight years as a high school mathematics teacher before transitioning into the financial services industry. He started K-12 Planning in 2024 and his passion for serving as a fiduciary for teachers and a student loan planning expert runs deep, as his wife and several other family members have served as educators for years.