28. Finances
Is there any way to make it work?
According to the 2017 Nishma Research Survey, the most pressing issue people feel is facing the Jewish community is the cost of Jewish education. The fourth spot on the list was the cost of maintaining an Orthodox home.1 Finances represent a major concern for our community, even while our median income is almost two to three times higher2 than the average in America!3 What can be done to address this issue?
(Full disclosure: Tuition is of course the largest expense, and also the most difficult to tease apart. The issue has been discussed for years already, and a viable solution still does not seem to have been found. I don’t have the background needed to make any intelligent comments; I leave it to the accountants and educational consultants who have studied the issue. The following is two very general and very basic suggestions, and it is up to each individual to think about how to apply the concepts.)
Income and Expenses
One way of thinking about it is that there are two numbers are at play: whatever you’re making now, and whatever you need to be making to make ends meet (including saving for costs down the line). Any suggestion for improving finances will deal with either number: either raising the current income, or bringing down the target.
Know Your Numbers
One of the most basic prerequisites to dealing with finances is to know your numbers How much money are you making, and how much are you spending? As of now, financial literacy is not taught in schools, and many teenagers are given family credit cards to use, so they don’t have much incentive or opportunity to learn how to manage their money. Therefore, for many, marriage is the first time they have to manage their own money — and at that point, no one is teaching them how to do that. So they need to figure out, among other things: Credit cards, rent, home furnishings, life insurance, grocery shopping, eating out, clothing, medicine, taxes, investments, transportation, etc. It is all too easy to get lost in a haze of cards, bills, and bank statements, and lose sight of how much money is coming in and how much is going out. Without that clarity, though, there is no way to know where costs can be cut or money can be saved.
What can be done? When we were first married and living in Washington Heights, a local accountant sat with us and helped us work out a budget — fully pro bono. (Yes, I know that this is a way to attract potential clients. That doesn’t detract from the real benefit that can be gained from such a session.) Living Smarter Jewish, an organization funded by the Orthodox Union, is now offering a similar service for new couples, as well as coaching for families who need more help. Both initiatives can be expanded with a team of financially savvy volunteers. Especially the session for new couples, where the goal is to introduce basic concepts of financial literacy and get them set up with bank accounts, a budget, etc., can be done by college-aged students who are knowledgeable about the basics.
Side Hustling
To address the other side of the equation by raising one’s income, a side hustle can have a significant impact for a family. Earlier, we explained the importance of investigating interests, practicing skills, and cultivating hobbies. Nowadays, almost any hobby, skill or interest can be monetized: If you’re skilled with an instrument, you can play at s’
machos or teach people how to play. If you’re artistic, you can run group events like a Paint Night, teach kids in after-school programs, or run events for parents and children together. A person interested in nutrition and personal fitness can get certified relatively easily and work with people looking to lose weight or improve their health. The earlier this is started, the more time a person has to develop a reputation, build up a steady client stream, and establish competitive rates. Better to start something slowly in college and build up rather than realize a few years into marriage that you’re slowly falling into debt and need to turn things around.
This is potentially most needed, and also most possible, for teachers. While the profession is notorious for low salaries (and efforts are being made to change that), there is also a significant amount of flexibility, especially if a teacher is only teaching half the day. The extra hours, plus the summer off, should be available for a financially significant side hustle. In this case, I speak from experience: Among myself and my own friends, I know of teachers who are also: editors/copyeditors, writers, plumbers, data analysts, tax preparers, psychologists, life coaches, and photographers. For most, these are not only ways to make an extra buck, but an opportunity to exercise a part of themselves and utilize skills which would otherwise not be expressed.
Example: Financial Coaching
One example that brings both sides of this issue together is to work as a financial coach or consultant. Much of the work is focused on helping people gain clarity on their numbers and come up with a budget/spending plan for the future. If needed, they can brainstorm possible career paths or side hustles that fit with the clients interests and skills. The job is fully flexible, with the coach setting their own hours and conducting sessions on Zoom, and the benefit brought to the community is significant.
https://www.jewishdatabank.org/content/upload/bjdb/2017_Summary_-_Profile_of_American_Modern_Orthodox_Jews_09-27-17.pdf
http://nishmaresearch.com/assets/pdf/REPORT%20-%20Nishma%20Research%20-%20The%20Finances%20of%20Orthodox%20Jewish%20Life%20Dec%202021.pdf
https://www.census.gov/library/publications/2021/demo/p60-273.html