Financial Wellness:
An Introduction.
by the iRise Wellness Board
As educators, thinking about finances can be complicated.
After all, we don’t think many (read “any”) of us entered the field with expectations to be wealthy. Instead, we wanted to give back to our communities, engage in transformation and change efforts, and support the next generation of thinkers and leaders.
Despite our intentions, modest entry-level salaries and hefty workload and labor expectations force us to closely monitor our pockets. Below, we offer a definition of financial wellness and share some of our major learnings about money management.
Definition: Financial wellness describes the extent to which we manage money, capital, investments, and economic shifts. It refers to one’s ability to make decisions about finances that position themselves, loved ones, and communities in better financial situations. Individual and collective efforts shape one’s financial wellness.
Jordan:
I had to learn what it means to save and how to use credit. I avoided credit for the longest until I worked for Bank of America in card services. Helping other people manage their credit showed me how to do it before I got my own credit cards.
Saving money and building credit are key to financial wellness. As you begin your savings journey, don’t be afraid to start small. Instead of focusing on the amount, focus on consistency. You may consider setting up an automatic transfer from your checking account to your savings account on a specific date each month. Further, when building credit, rely on experts.
In Jordan’s case, that meant a major bank, but you can also consider a financial advisor or accountant.
LaTecia:
I had to learn how to make calculated risks with money, like investing more. After college, in 2013, I made close to 73k a year, and I lived paycheck to paycheck because I did not know how to manage money. When I left my job, I was broke and decided to go back to school, which meant taking a pay cut as a graduate assistant, making pennies to the dollar. After that, I learned how to budget, invest, and also have fun.
Our jobs as educators often dictate the extent of our financial wellness. We feel that, since we only make a limited amount, we have limited options toward financial mobility.
LaTecia learned that investing helped level her financial playing field. Think about ways you can make “calculated risks” to better your financial situation.
Devore:
My thoughts about money have changed tremendously over the years. I now think long term with my money and how it is utilized versus when I was younger, I thought of money with a short term mindset.
As we grow in our careers, we start to think about money in respect to time. The idea of “stretching a dollar” becomes less about the upcoming days, weeks, months, and it evolves to being about the next few years and decades. Topics like retirement, college funds, and life insurance become imperative.
Kamia:
I have more bills now, but I realize that I do not compromise on how much I budget for fun, leisure, and relaxation. I refuse to devote all my money to what many deem to be “the essentials.”
Budgeting is not just for utility bills, rent/mortgages, and car insurance. Of course, those are important budget lines, but we must make financial space for so much more. Self care and leisurely activities are a necessity for Kamia, so she considers them to be required expenses. Like Kamia, we all have non-negotiable spending habits outside of our basic needs. Though you may consider how to scale the frequency or extent you engage with them, you don’t need to abandon them. You deserve to treat yourself.
Cultivating your financial wellness takes time.
Some of the tips we suggested take years to see a return on investment; however, it is worth it. For many of us, the stakes are high, as our individual financial decisions impact our families and communities.
Take the first step, and get to know your finances. You owe it to yourself and your loved ones!