When Sean Morgan, 31, started going down the personal finance rabbit hole a little over five years ago, he realized that a lot of the classic advice didn’t apply to him.
Morgan, who was a seventh-grade world history teacher at the time, didn’t resonate with podcasts that told her to negotiate raises and overtime pay because teachers’ salaries are typically negotiated with unions. Obtaining 401(k) eligibility is often an early step in a financial framework, but it does not apply to public school teachers who instead obtain a 403(b).
“Not many people talked to teachers about their personal finances,” he says.
So in addition to her full-time job as an educator, Morgan began talking to her peers about money, first by blogging and hosting virtual summits, and now by hosting The Teacher Money Show, a podcast focused on helping teachers build wealth. He currently works as an administrator and personal finance teacher at an online public charter school.
Morgan says that while the profession is generally considered to be poorly paid, much of the money-related work that teachers do comes down to mindset.
“I think the most important thing is for teachers to overcome the idea that “I’m poor because I’m a teacher,” he says.
Here are his top tips for educators looking to build wealth.
1. Don’t accept the “Teacher Poverty Vow”
Morgan coined the concept of not getting rich among teachers the “Teacher Poverty Vow.”
Many educators “become a teacher and walk into the lunchroom and hear, ‘Oh, I’m poor. I’ll never make enough money,'” Morgan said. “They just hear it over and over again. They don’t have a chance to believe that it’s possible to get rich as a teacher.”
But Morgan says it’s possible. He pointed to a Ramsey Solutions survey of 10,000 millionaires showing that teaching is one of the most common occupations among people with seven-figure net worths.
Part of the reason is how common teaching is as a profession, Morgan says. But part of it requires smart money management, even with nominally lower salaries.
“It’s not about how much you make, it’s about how much you keep,” Morgan says. “And you have more control over it than you think.”
2. Save wisely
One way teachers can build long-term wealth is by investing in a 403(b), the workplace retirement plan offered to many public employees.
While it may be tempting for educators to follow blanket advice for more common 401(k) plans, Morgan says there are important differences in 403(b) plans. While 401(k) plans are subject to ERISA laws that require plans to meet minimum standards for investor protection, many 403(b) plans are not. That means 403(b) plans can have many providers selling products such as high fees and annuities that may be inappropriate for some teachers, Morgan said.
Additionally, many school plans allow you to choose from dozens of vendors. “Who has time to organize and find the right one?” Morgan says.
Research shows that high investment fees are a major drag on long-term returns. Additionally, the absence of specific investor protections may incentivize plan sponsors to sell products that are inappropriate for your financial situation.
For teachers looking to save for retirement, an important consideration is finding a good vendor with low prices, rather than choosing a vendor who brings donuts to school one morning, Morgan said.
His recommendation: Visit 403bwise, a nonprofit that lets teachers know what plans are available in their districts. “Their mission is to educate people about 403(b)s and help them choose the right one,” Morgan said.
3. Define wealth for yourself
Although teachers may earn less than people in other professions with comparable levels of education, they enjoy some unique financial advantages.
For example, public school teachers typically receive a pension, which is all but gone in the private sector and could be worth more than you realize, Morgan said.
“If you’re receiving a $40,000 annual pension, that’s the same as putting $1 million in a retirement account and withdrawing 4% a year,” Morgan said, referring to common retirement income strategies. “That’s a big deal.”
Teachers looking to increase their income also have some unique tools. Public pay transparency generally allows educators to see how much more they could earn if they moved to another school district, Morgan said. Taking a few months off in the summer gives you the opportunity to increase your income with a side hustle.
But ultimately, “money is not as important as freedom and happiness,” Morgan said.
Like other professionals, teachers can use their money as a tool to buy comfort and flexibility. He says the incredible savings give educators the freedom to take time off, pursue their profession on their own terms, and even retire early.
Want to level up your AI skills? Sign up for CNBC Make It’s new online course, “How to use AI to better communicate at work by Smarter by CNBC Make It.” Get specific prompts to optimize your emails, notes, and presentations for tone, context, and audience. Register now using coupon code EARLYBIRD and receive a 20% off introductory discount. Offer valid from October 21st to October 28th, 2025.
Plus, sign up for the CNBC Make It newsletter for tips and tricks to succeed at work, money, and life, and request to join our exclusive community on LinkedIn to connect with experts and colleagues.
