This paper addresses the financial value of the teacher librarian, outlines areas in which this value can be identified, and indicates measures that can be used to demonstrate this value. The four major financial areas in which the value of the teacher librarian can be assessed are: (1) capital investment, made up of the building, stock, and equipment--the teacher librarian maximizes capital investment by organizing the physical facility and resources to gain the maximum use by the school community; (2) recurrent operating costs, including site (cleaning, power, and telephone), acquisition of new library materials, maintenance of equipment, and staff salary costs; (3) cost benefit, the benefit derived by the school by hiring a teacher librarian, as determined by the teacher librarian's ability to save the school time and therefore money through their knowledge of the curriculum, the teachers' requirements and style, the students' learning patterns, and the resources in the library, other areas of the school, and the wider community; and (4) cost effectiveness, demonstrated by the teacher librarian showing that the cost of the current means of provision is more effective than an alternate model or source. As schools are forced to examine the possible alternatives for allocation of their funds, teacher librarians must be prepared to demonstrate the value of the cost of operating the library and the contribution that is made to the educational program. (SWC)