Disclaimer: While in this post, I might discuss our personal finances and go on a bit of rant, we are actually not doing that badly financially. When you read stories that 47% of Americans couldn’t cover a $400 emergency, it really starts to depress you.
A Bit of History
I never really intended to be a teacher. When you graduate with a BA in History, your prospects are rather limited. It wasn’t until I did some long-term substituting that I realized I actually didn’t hate teaching. I liked the idea that every day was different, and I loved that I could help students achieve beyond their potential.
I started my teaching career in the UK. I was lucky to have a Scottish mother, thus an EU passport (at least for the next two years!) In that time, I gained increasing expertise in the International Baccalaureate. (A curriculum that is growing dramatically in the United States)
For the next 10 years, I had the wonderful opportunity to teach abroad in a variety of countries; gain two masters degrees, see the world. What I didn’t do was save much money.
Fast forward to 2010, and I found myself back in the US, 32 with no real retirement savings. This might become a bit of a problem! Add a wife in 2012 and a son in 2015, and I soon realized that I needed to start considering the future a bit more!
Current Financial Prospects as a teacher
First of all, I have no idea how teaching couple in Florida public schools do it! Some colleagues (who are married to teachers) have 2 or 3 kids. We have one and while we live comfortably, the idea of adding a second child may be too much for us financially. I suppose it hurts us that we have no immediate family in the area.
Four years ago, we both started at Palm Beach County School District. I suppose we both knew what we were getting into – Palm Beach County eliminated steps about 10 years ago. Last year we got a 3% raise. Not bad I know. It seems that money is always tight for the district and any future raises can not be promised.
As for retirement, Florida teachers rely on the FRS (Floria Retirement System). Two options are the investment option and the pension option. The major benefit of the pension, as long as you stay for at least 8 years, is a Defined Benefit (DB) pension. This pension for a by-gone era guarantees an annual amount after retirement based on number of years served.
Because it would take 8 years to become fully invested, I opted for the investment option. 3% deducted from my salary and the district adds another 3.3%. This is pretty paltry.
We also have the option of adding a 403(b). I have mine through TIAA and currently have 10% of my gross salary going into that. Better than most.
As far as pre-tax goes we also take out the most for FHA Dependent-Care (currently $5000)
Minus all the usual taxes and out net pay is:
| Kevin | Lindsey |
|---|---|
| $1,276.46 | $1,032.86 |
Now that is pretty pathetic!
I do a few things on the side (coaching; $50 for every student who passes an AP exam; the idiotic Best and Brightest Scholarship
Our daycare costs $1,030 per month. And we want to have a second child and still have a retirement.
You do the math
Small Salary + Daycare + Potentially more daycare = broke
So that leaves us with a number of different options
- Pay around $1800 in daycare (we get a 10% discount on two!)
- Have one of us stay home (since daycare for two kids would basically be the same as one salary)
Both of those options probably won’t work since we still need to eat food and live in a house. If it did, it would require one of us to work until exhaustion!
3. Decide not to have a second child
Also not the most appealing prospect
Or…
4. Something else
That seems like the option left …
