“Teachers are too smart to fall for money mistakes.”
If only that were true.
As educators, we teach Newton’s Laws, Shakespeare’s sonnets, and the Pythagorean Theorem. Yet many of us get tangled in credit card debt, fall for costly insurance policies, and assume the General Provident Fund (GPF) alone will fund our retirement.
Why? Because money myths are everywhere — whispered in staff rooms, repeated by well‑meaning friends, and pushed by aggressive sales agents.
As a school head, I’ve seen some of the most intelligent, hardworking teachers quietly suffer because of these myths.
One colleague once told me, “Charak Sir, I’ve been teaching maths for 20 years — but I still don’t understand how SIPs work.”
That’s when it hit me: this isn’t about intelligence — it’s about awareness.
And we need to talk about it — openly, often, and without shame. Because financial wisdom should be as common as classroom lessons.
Myth #1: “GPF Is Enough to Secure My Retirement”
You’ve heard it: “I’ll just contribute to the General Provident Fund (GPF) and I’ll be set.”
The truth:
Relying solely on GPF is like expecting a single textbook to prepare your students for life. GPF contributions and interest rates haven’t kept pace with inflation or the rising cost of living. In 2025, only 27 % of Indian adults are considered financially literate which means most people—even graduates and professionals—don’t fully grasp how inflation silently erodes savings.
Real inflation‑adjusted returns from bank deposits can be much lower than the headline interest rate. For example, Religare Broking notes that if an FD pays 6 % while inflation is 4 %, your real return is just 2 %—and that’s before taxes. Compound this over 20–30 years and the gap between what you need and what GPF delivers becomes enormous.
What to do instead:
Treat GPF as one piece of your retirement plan—not the whole plan.
Explore Systematic Investment Plans (SIPs) in diversified mutual funds; long‑term equity funds have historically delivered 12–14 % average returns over a decade, compared with ~10 % in real estate
Consider opening a Public Provident Fund (PPF) and National Pension System (NPS) account for tax‑efficient, inflation‑beating growth.
Allocate some savings to short‑term fixed deposits or debt funds for stability, but don’t expect them to make you rich.
Myth #2: “Insurance Is an Investment – It Will Make Me Rich”
In March 2023, Bima Samadhan highlighted the plight of a government teacher who approached Purvanchal Bank (now Baroda U.P. Bank) for a loan top‑up. Instead of processing his application, bank employees told him he would have to buy a ₹ 50,000 per‑year SBI Life policy before the loan could be approved.
Feeling cornered, he signed up for the policy. During a verification call, he explicitly said he did not want the policy, and the caller assured him it would be cancelled. Yet the bank proceeded to issue it anyway and deducted the first premium from the loan amount. When he asked for cancellation and a refund, he was ignored. The bank even refused to provide him with the policy document, claiming it would only be given after he had paid at least three premiums.
The teacher still hasn’t received his refund. His experience shows how banks and insurers can coerce customers—especially trusted public servants—into buying expensive products they neither need nor can afford. It underscores why asking questions, documenting every interaction and knowing your rights as a consumer are critical steps when dealing with financial institutions.
Myth #3: “Credit Cards and Loans Are Evil—Avoid Them Completely”
Many teachers either avoid credit cards altogether or, conversely, treat them as free money. Both extremes can be dangerous.
The truth:
Credit cards are tools. Used wisely, they earn rewards and build a credit score. Used recklessly, they become traps. India Today reported that credit‑card defaults climbed to 1.8 % in the first half of 2024, with outstanding dues hitting ₹2.7 lakh crore. Many millennials and Gen Z users max out cards on EMI‑based purchases and Buy‑Now‑Pay‑Later schemes, and then slide into a spiral of minimum payments and 48 % annual interest.
What to do instead:
- Treat credit cards like sharp knives: use them carefully. Pay the full balance every month to avoid interest.
- Limit the number of cards you hold; two is enough for most people.
- Build an emergency fund of 3–6 months’ expenses so you don’t rely on credit for medical bills or car repairs.
- If you’re already in debt, prioritise paying off the highest‑interest loans first.
Myth #4: “Property Is the Best Investment – Rent Is Money Down the Drain”
We often believe owning a house is the ultimate sign of success. Parents, relatives and society push us toward property—even if it means taking huge loans.
The truth:
Real estate isn’t always the golden goose. Analysis by ET Money shows that over the last decade, the average real‑estate return has been around 10 %, whereas mutual funds delivered 12–14 %. Property investments are also illiquid—you can’t sell a room to pay your daughter’s college fees. Maintenance costs, property tax, and the opportunity cost of a large down payment often make real estate less attractive than diversified financial assets.
What to do instead:
- Buy a house when you truly need one for living—not as your primary investment.
- Calculate total costs (registration, maintenance, taxes, interest) before committing.
- Diversify—spread your money across mutual funds, FDs, gold, NPS and, yes, real estate (once your finances are secure), rather than sinking everything into a single asset.
Myth #5: “I’m a Teacher—Investing Is Only for the Rich”
Many teachers believe that investing is complicated and only for high‑income individuals. They assume their modest salaries won’t make a difference.
The truth:
It’s not about how much you earn—it’s about how early and consistently you start. Even investing ₹2,000 a month in an equity mutual fund can grow into a substantial corpus over 20–30 years thanks to compound interest. Financial literacy isn’t tied to income levels; only 27 % of Indian adults are financially literate, which means many high earners are equally misinformed. Starting small is better than waiting for the “perfect” moment.
What to do instead:
- Begin with small SIPs; increase the amount as your income grows.
- Keep an eye on inflation. Remember the inflation‑FD example: a 6 % FD with 4 % inflation yields just 2 % real return.
- Invest in yourself. Spend time reading, attending workshops and discussing money matters. The more you learn, the more confident you’ll become.
Final Thoughts: Your Classroom and Your Bank Account
Teaching is a calling. But that doesn’t mean your finances should suffer. By recognising these myths and embracing the truths, you’ll not only strengthen your own financial future—you’ll model healthy money habits for your students. When teachers become financially confident, they inspire a generation to be both book‑smart and money‑smart.
So, the next time someone says, “Why teach teachers about money?” smile and say, “Because knowledge is power—and that includes financial knowledge.”
Ready to Take Charge?
If this post resonated with you, don’t let it stop here. Financial empowerment starts with a single conversation—and grows when we share what we learn.
- Join the Chalk2Wealth movement. Visit chalk2wealth.com to explore guides, calculators and community stories tailored for educators and families.
- Share the message. Forward this post to a colleague, parent or student; your word could be the spark that ignites someone’s financial journey.
- Talk to us. Have questions or a story to share? Start the dialogue on WhatsApp at 9816480765 and let’s walk the path to financial confidence together.
Knowledge doesn’t just belong in textbooks. Let’s make money lessons a part of everyday life—and build a future where teachers retire with clarity, not confusion.
Which of these myths have you encountered personally? Let us know in the comments or on WhatsApp
