1. How much money does a teacher make? Who Makes More Money? New Teacher vs. Restaurant Manager

2. Benefits Textbook = $31,340 DOE = $43,157 (BEd) Lifetime or 80%, Pay 40% premium Starting Salary Dental Medical New Teacher (30 years old) Restaurant Manager Manager = $50,000 Not Lifetime (< 80%) Premium depends on employer

3. Benefits 18 days per year (5 days can be used as personal day) (accumulates and can apply to retirement ) Holidays and summers off Sick Days Schedule New Teacher (30 years old) Restaurant Manager Probably, but fewer days (no accumulation) No holidays. Two weeks vacation

4. Benefits About 63 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 $ 26.3/hour Amount of Hours Worked $/hour New Teacher (30 years old) Restaurant Manager About 40-60 hours/week. 48 weeks x 50 hours = 2400 hours $20.8/hour

5. Benefits Yes, Tenure/Union – paycheck for life Yes, clear salary scale Yes, receive SS Job Security Advancement Retirement (social security) No guarantees! Yes, not clear – up to boss Yes, receive SS New Teacher (30 years old) Restaurant Manager

6. Benefits Teach for 30 years! Current salary at $43,157 and estimate 3% pay increase over 30 years = $104,000 final salary when retire. Retire at 80% of $104K = $83,200 per year to retire comfortably on. Retirement (Savings) New Teacher (30 years old) Restaurant Manager

7. Benefits 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!!! Retirement (Savings) New Teacher (30 years old) Restaurant Manager

8. Benefits 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 Retirement (Savings) New Teacher (30 years old) Restaurant Manager

9. Benefits 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) Retirement (Savings) New Teacher (30 years old) Restaurant Manager

10. Benefits So, $40, 567 - $3,000 = $37,567 But, remember you only work 9 months/year. You teach a class during the summer! $37,567 + $4,000 = $41,567 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) Retirement (Savings) Need to save $2 million. To do this, need to save $18,000 /year at 8% return for 30 years Actual salary 50K -18 K = $32K w/ shaky lifetime benefits and a shaky retirement based on investments. Must constantly worry about it. Advantage – Get to pass money onto children when die! New Teacher (30 years old) Restaurant Manager