Empowering educators: financial literacy for teachers

For me, that exceptional teacher was my geography teacher in middle school. Every afternoon, as she entered the classroom, she began with a freehand yet accurate drawing of the map of India, gradually expanding it to the world map. The discussions deftly interconnected natural resources, climate, countries and politics. Her storytelling seamlessly intertwined economic changes, historical events and critical policies, making the learning experience not just informative but also enjoyable. I often wonder about her life after retirement, particularly concerning her financial well-being.

With 9,507,123 teachers on record for the 2021-22 academic year, according to the latest UDISE+ report, India boasts one of the largest contingents of educators globally. This formidable educational army operates out of an extensive network of schools, colleges, and institutions. Yet, figures from Collegedunia reveal that the average annual salary for teachers in India post-training ranges from ₹2.5 lakh for pre-school and primary teachers to ₹6 lakh for lecturers. Based on input from teachers on Quora, salary revisions occur sporadically, typically every 3-4 years, with modest annual increases of 5-8% in urban settings.

Going by remuneration data, teaching is easily among the lowest paying jobs in India, especially at school level. The benefits for teachers vary widely, influenced by factors such as location, institution type (private/public), educational level, and years of experience. In general, they grapple with issues related to income fluctuations, job insecurity, insufficient retirement and healthcare benefits, and a lack of structured social security.

The demanding nature of the profession, time constraints, limited financial resources and lack of financial literacy, often leads them to overlook their own financial wellbeing. It is sad that these builders of society go through financial stress as most of them are underprepared for retirement years.

The recent announcement from the government regarding mandatory EPFO registration for all CBSE-affiliated schools is a step in the right direction. The new norm is expected to extend EPF benefits to teachers working at schools operational for three years or more. The NEP 2020 aims to upskill and achieve pay parity for teachers but overlooks essential life skills like financial management.

In the quest for financial well-being, teachers, like professionals in other fields, often lack a fundamental understanding of investments and financial planning. It is crucial to comprehend the basics of inflation and the power of compounding for all future planning.

Beyond their personal financial stability and improved quality of life, there are compelling reasons to empower teachers from a forward-looking perspective. With over ₹97 lakh teachers spread over 15 lakh schools impacting 26.5 crore students, India needs an urgent action plan for financial literacy to raise a financially savvy generation.

As role models, teachers possess the unique ability to break down complex subjects into manageable lessons. They have access to educational resources that can help tailor financial education and encourage students to grasp this multifaceted topic easily. Picture a geography teacher seamlessly incorporating financial literacy into her lessons.

Empowering teachers with financial literacy requires a multifaceted approach, including integrating it into teacher training and professional development programs. Fostering open discussions on finance and helping teachers with their finances can enable this transformation rapidly.

On this Teachers’ Day, as we express our gratitude to those who shaped our future, let’s also acknowledge their need for financial literacy. Let’s work together to ensure a brighter future for both teachers and the generations they inspire. It’s a fitting honour to the educators and to our alma mater.

Anu Seth is co-founder at Pay it Forward.

Updated: 05 Sep 2023, 05:47 PM IST