How much money does a teacher make Who
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How much money does a teacher make? Who Makes More Money? New Teacher vs. Restaurant Manager
Benefits Starting Salary New Teacher (30 years old) Restaurant Manager Textbook = $31, 340 DOE = $43, 157 (BEd) Manager = $50, 000 Lifetime or 80%, Pay 40% premium Not Lifetime (< 80%) Premium depends on employer Dental Medical
Benefits New Teacher (30 years old) Restaurant Manager Sick Days 18 days per year (5 days can be used as personal day) (accumulates and can apply to retirement ) Probably, but fewer days (no accumulation) Schedule Holidays and summers off No holidays. Two weeks vacation
Benefits Amount of Hours Worked $/hour Restaurant Manager New Teacher (30 years old) About 63 hours/week. About 40 -60 hours/week. Weekday: 6: 30 am – 4: 30 pm + 1 hour evening (11 hours x 5 days = 55 hrs) Weekend: Sat/Sun = 8 hours = 63 hours per week 182 school days or 26 weeks x 63 hrs/week = 1638 hours 48 weeks x 50 hours = 2400 hours $ 26. 3/hour $20. 8/hour
Benefits New Teacher (30 years old) Restaurant Manager Job Security Yes, Tenure/Union – paycheck for life No guarantees! Advancement Yes, clear salary scale Yes, not clear – up to boss Retirement (social security) Yes, receive SS
Benefits New Teacher (30 years old) Teach for 30 years! Retirement (Savings) Current salary at $43, 157 and estimate 3% pay increase over 30 years = $104, 000 final salary when retire. Retire at 80% of $104 K = $83, 200 per year to retire comfortably on. Restaurant Manager
Benefits Retirement (Savings) New Teacher (30 years old) How long do you plan to live? 85? That would mean you need 25 years of retirement income. To generate $83, 200/year for 25 years, how much would you need to save up? 2 million dollars!!! Restaurant Manager
Benefits Retirement (Savings) New Teacher (30 years old) The DOE helps you save for retirement by taking 6% out of your salary each year: $43, 157 x 6% = $40, 567/ year The DOE has a retirement calculator that says (based on 30 years in DOE), you will receive $65, 000 year. You are about $83, 200 - $65, 000 = $18, 200 short/year! Need extra 375 K Restaurant Manager
Benefits Retirement (Savings) New Teacher (30 years old) To save an additional 375 K over 30 years, need to take out an additional $3, 000 out of your salary for 30 years in a retirement account (based on 8% annual growth) Restaurant Manager
Benefits Retirement (Savings) New Teacher (30 years old) Restaurant Manager So, $40, 567 - $3, 000 = $37, 567 But, remember you only work 9 months/year. You teach a class during the summer! Need to save $2 million. $37, 567 + $4, 000 = $41, 567 Actual salary 50 K -18 K = $32 K w/ shaky lifetime benefits and a shaky retirement based on investments. Must constantly worry about it. w/lifetime benefits and secure retirement. PAYCHECK FOR LIFE!!! Advantage – Lifetime payments until you die (not 25 years), and spouse can continue to receive your payments (less money per month) To do this, need to save $18, 000 /year at 8% return for 30 years Advantage – Get to pass money onto children when die!