Medscape’s 2022 Medical Student Lifestyle Report found that med students’ top concerns deal with managing finances, debt, and contracts. As a follow-up to these findings, Medscape ran a poll of medical students to learn more about their financial issues. Over two-thirds (68 percent) of the 151 respondents said that they always/often worry about finances. Among first- and second-year med students, this percentage jumps to 75. Over half said that they are confused about money and only 42 percent—just 26 percent of female respondents—said that they feel prepared to manage their finances.
Most students named debt as their primary concern (86 percent). This was followed by investments (52 percent), contracts (27 percent) and business operations (16 percent). Some addressed their difficulty in balancing spending for necessities and “fun” items, and cited issues with budgeting for the residency application process in the fourth year.
Financial planner and advisor to young doctors, Paul Morton, spoke with Medscape, noting that medical students are often asked to make binding decisions, many of which they don’t feel confident making, about loans and investments. He also acknowledged that student loan rules have become more complex.
James Nutter, Director of Client Experience for IM Wealth, also spoke with Medscape and reassured medical students that loans for medical school are a remarkably safe investment for their future.
In addition, he encourages medical students to consider the following:
Examine your relationship with money. Are you being overly influenced by your childhood experiences, your parents struggle with money, or other external factors such as social media? What personal experiences may be driving or coloring your spending behaviors?
Take note of exactly how you spend your money on a monthly basis. What types of items are buying? Detailed knowledge of your spending habits can inform how much you need to borrow.
Identify three core values, and spend your money in ways that align with those values. This will help to reduce the noise of external pressures on your spending and ensure that your spending is reflective of who you are.