Besides retirement planning, more educators, like many people, are seeking help managing their financial commitments, said Barry Hudson, the NEA’s vice president of member relations.
“We’ve done research over the past two or three years to get ideas of what members need," he told Education World. “And they are leveraged -- it’s affecting their credit rating, ability to save, and ability to build a financial fortress."
“Look for a person with whom you are willing to get financially naked."
In response to member needs, the NEA launched a partnership with the National Foundation for Credit Counseling. NEA members can get advice about managing and reducing their debt over the phone or in person for free or for a nominal charge. “They need help with paying day-to-day bills so they can look to start investing," Hudson noted.
Since the partnership began about 18 months ago, several thousand educators have sought advice and the NEA is continuing to spread the word.
One reason some educators might accumulate debt is they have high aspirations for their children, speculated Hudson. Teachers are educated and education-minded and want their children to be well-educated as well. So they spend money on college tuition the way people in higher income brackets do. “They take on more debt than most people for educational expenses," he said.
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