Specialist Financial Adviser, David Baker, from Wesleyan Financial Services, discusses the impact that financial wellbeing can have on the lives of teachers and senior leaders in the education profession.
What is financial wellbeing?
‘Money makes the world go around’, is a well-known idiom, and there is good reason for this. Regardless of differing personal views towards money and finances, the reality is that most people in today’s society, have to make decisions about using money every single day – from smaller decisions such as the groceries we choose in the supermarket, through to larger commitments such as mortgages, loans, investments, pensions, retirement planning, and estate planning.
The Money and Pensions Service defines financial wellbeing as feeling secure and in control of your finances, both now and in the future. According to their last Financial Wellbeing Survey in 2021, 57% of those who have experienced a mental health problem in the three years prior to the survey, say that thinking about their financial situation makes them anxious.
Mental health and teaching
As a someone who was a secondary school teacher for 18 years, during which time I worked as a classroom teacher and as a deputy head teacher, I can speak from experience. Teaching can be an extremely rewarding career in many ways – as well as the lifelong impact teachers can have on individuals and communities, there are many other advantages including salary, pension, career development opportunities and employment stability. On the downside however, stress and poor wellbeing due to the pressures of the job and the high workload, are commonly reported amongst teachers and those in leadership positions.
Unfortunately, many of my clients are wanting to leave the profession, whether that is to retire completely, or, like myself, to change career path. The reasons that clients give are usually to do with the stress of the job, work-life balance, and to improve their mental health.
The latest, ‘Working Lives of Teachers and Leaders 2024’, was recently published by the Department for Education. This annual survey of teachers and leaders in state schools in England, explores teachers and leaders’ workload, wellbeing, flexible working arrangements and future career intentions, amongst other things.
The report found that one in three teachers are considering leaving the profession in the next 12 months for reasons other than retirement. The two most commonly cited reasons for considering leaving – highlighted by nine out of 10 people – were high workload and stress, or poor wellbeing. Of those staff who had reported considering leaving in 2023, 15% had done so by 2024.
NASUWT’s Wellbeing at Work Survey 2024 ran from mid-September 2023 through to early January 2024 with 11,754 teachers participating in the survey. The results showed that 84% of teachers have experienced more work-related stress in the last 12 months and 86% report that their job has adversely impacted their mental health in the last 12 months.
Stress and stress management can contribute greatly towards our mental health and massively impact the lives of teachers. Any type of financial worry can create an additional burden – resulting in feelings of overload, which can have further knock-on effects, and exacerbate stress levels and poor mental health.
How can sound financial planning help teachers?
Professionals in the education sector generally lead busy lives; after a hectic week at work and tending to the demands of home life, taking time out for financial planning can understandably be of low priority. Financial wellbeing, however, is important and arguably a contributing factor towards general wellbeing.
Having your finances in order can help to reduce the potential of additional stress. This is where it can be extremely useful to seek the professional support of a specialist financial adviser – someone who understands the teaching profession and is an expert in finance.
An adviser can offer holistic financial planning to help to define your goals and priorities, as well as assisting you in making the right choices to ensure that you are financially protected and have a solid plan to reach your financial goals. They will also be able to identify any opportunities to make the most out of your hard-earned income – whether that means getting better at saving or making sound investment decisions that align to your future goals – there are lots of ways that they can help to maximise your finances and support you at each milestone. This could include anything from getting onto the property ladder and buying your first home, remortgaging, or purchasing your forever home; starting a family and protecting you and your families’ financial future; retirement planning to help you achieve a comfortable life in your next chapter – right the way through to estate planning.
Having regular financial reviews can help you to feel in control of your money and help to ensure that you have enough money to do the things that make you happy.
Better financial wellbeing offers greater freedom of choice, as well as peace of mind – giving teachers one less thing to worry about during their precious free time.
At Wesleyan Financial Services, I, or one of my colleagues, who specialise solely on professionals from the education sector and their unique financial planning needs, are there to support teachers and senior leaders on each stage of life’s journey. From the newly qualified, to post-retirement, and every step in between.
Bear in mind that the value of investments can go down as well as up and you may get back less than you invest.
Your mortgage is secured on your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
Wesleyan Financial Services is a broker and will be paid a fee upon completion of the loan.
The NAHT is an introducer appointed representative of Wesleyan Financial Services Limited.
If you would like support or guidance on understanding your financial position, speak to a Specialist Financial Adviser at Wesleyan Financial Services for a financial review by visiting: A better financial future for teachers. Charges may apply. You will not be charged until you have agreed the services you require and the associated costs. Learn more about our charges here.
About: David Baker is a Specialist Financial Adviser, at Wesleyan Financial Services, supporting teachers, school leaders and their families with financial planning to secure their financial futures.
Advice is provided by Wesleyan Financial Services Ltd.
NAHT is a trade union whose registered office is situated at Centenary House, 93-95 Borough High Street, London SE1 1NL. Telephone: 0300 30 30 333; website: www.naht.org.uk. NAHT is an introducer-appointed representative of Wesleyan Financial Services Limited.
‘WESLEYAN’ is a trading name of the Wesleyan Group of companies.
Wesleyan Financial Services Ltd (Registered in England and Wales No. 1651212) is authorised and regulated by the Financial Conduct Authority. Registered Office: Colmore Circus, Birmingham B4 6AR. Telephone: 0345 351 2352. Calls may be recorded to help us provide, monitor and improve our services to you.