Teachers are often celebrated for guiding our children yet we often overlook the fact that they also need guidance and counselling. They teach students how to become financially independent and make wise financial decisions but when it comes to planning and managing their own finances, they often find themselves uncertain and overwhelmed. If the people responsible for shaping future generations are emotionally and financially exhausted, the consequences will not remain confined to their families. It will reflect in classrooms, student outcomes and the overall quality of human capital.

A recent online survey of government teachers in Jammu and Kashmir reveals a worrying picture of financial vulnerability within the profession. Among the 337 participants from the school and higher education departments, 307 reported being in debt. The data reveals that behind the dignity of the profession lies a growing financial fragility. Put debt aside for a moment and think about what it means for society when its educators lack financial understanding. The data shows that 68% of indebted teachers failed to seek professional advice prior to borrowing and 22% are unfamiliar with compounding interest. Academic qualifications, no matter how advanced cannot substitute for financial literacy.

The educated class expected to plan better is often seen borrowing more for status, comfort and social expectations. The data shows that debt usage is largely consumption driven with 87% of loans spent on housing, cars and weddings while wealth creating investments receive almost no attention. Although housing loans can contribute to asset creation, they do not generate income unless monetised. Even the latest Financial Stability Report (2025) from the RBI shows that Indian households borrow more for consumption than for asset creation owing a total of 41% of the nation’s GDP to financial institutions. This heavy reliance on consumption driven debt not only leaves households financially vulnerable but also poses paramount risks to the stability and growth of the national economy.

These days, life feels optional but showing off feels mandatory. This ego driven mind set can slowly damage our way of living overtime. Behind the image of being stable and successful, many teachers are quietly struggling. The data reveals that 73% of borrowers experience mental health challenges while 88% keep their financial struggles to themselves. What is troubling is that debt is often seen as a personal failure rather than societal and structural issue. Shame and fear prevent people from seeking help pushing them deeper into crises. The data further highlights that more than 60% of teachers feel compelled to borrow due to social pressure. The structural reasons like rising cost of living, high interest loans and inadequate social protections, rarely get the attention they deserve.

The story does not end there. Most teachers are grappling with money issues as 87% manage their debt entirely from their salaries without any supplementary income. For many, the money is gone before the salary even arrives. EMIs are eating it up. The data shows that 62% of teachers are taking extreme steps to manage their debt by selling family assets such as gold to repay loans. Even they have cut spending even on essential items just to keep up with repayments.

The situation is even more serious. With salaries largely consumed by debt, only 10% of teachers invest in equity or gold well below the national average of 23% according to the RBI report (2025). Savings are the starting point of investment and investment is what drives economic growth. When people save, they create security for themselves and strength for the economy. But when savings vanish, both households and the nation pay the price. This is particularly concerning at a time when India is actively promoting investment, savings and asset creation among its citizens. With lower savings and rising borrowings, teaching community is becoming financially vulnerable. Viksit Bharat is not only about modern cities and big projects, it’s about families being financially secure too.

When teachers are financially distressed, the quality and stability of education itself are at risk. The hard-hitting statistics call for an examination about what this silent crisis means for teaching community, their families and the education system as a whole. The crisis cannot be solved by asking teachers to ‘budget better’. The problem is deeper and more structural. On a positive note, 55% of indebted teachers report that they would avoid debt in the future and 42% believe they could have managed expenses without borrowing. However, a staggering 62% of teachers are of the opinion that debt has not improved their living standards showing a significant gap between expectations and outcomes. If debt is not making life better, it raises important questions for financial institutions, policy makers and society at large. Borrowing is supposed to be a tool for progress rather than a source of financial distress. When debt enslaves, society has failed its people.

Teachers represent the educated and relatively stable segment of society yet many among them are quietly sinking under the weight of debt. If this is the condition of intellectuals with fixed salaries and job security, what might be the reality for small traders, private employees, daily wagers or young professionals in unstable jobs? We are moving towards a society where no one owns anything and everyone owes everything. It should be recognised that debt is no longer just a household problem. It has become a growing headache for businesses and governments across the world. When corporates and governments find debt difficult to handle, it is not hard to imagine how devastating it can be for ordinary families.

The crises is indeed deep and dealing with it requires action at personal, institutional and policy levels. At the personal level, strengthening financial knowledge, emphasizing savings and differentiating between needs and wants are critical for maintaining good financial health. At the institutional level, educational departments could introduce structured financial empowerment programs for teachers similar to faculty development initiatives. Dedicated financial wellness cells within institutions could provide practical guidance, debt counselling and investment awareness.

On the policy front, financial institutions must ensure transparent lending practices, clearly explaining risks alongside benefits. The Reserve Bank of India has a role to ensure responsible lending norms so that easy credit does not turn into long term distress for borrowers. It must explain why 81% educators believe that the debt has become so normalized in our society that it no longer feels like a serious financial decision. If India’s vision of inclusive and sustainable growth is to be realised, the financial well-being of its educators must become part of the national debate. A society that values education must also value the financial stability of those who deliver it.

Aasif Shah, Assistant Professor of Commerce at Degree College Chrar-i-Sharief Budgam.

© Greater Kashmir