Financial Wellness Matters for Your Well-Being
Students are typically flooded with information on curriculum, clinicals, and more as they face a new and exciting chapter of their life when they enroll in medical school. As medicine becomes the main focus, it's tempting for other areas of their lives to get pushed to the side. However, students do not cease being a whole person with interests, hobbies, and goals when they begin medical school.
Individual areas of wellness such as academic, physical, emotional, spiritual, financial (and more) all work together to help students balance holistic well-being. When one area of wellness is lacking, it can significantly impact another area of wellness. Financial wellness plays a big part in this wellness ecosystem, especially in medical school when costs can really add up. When a student is financially stressed, it can negatively impact their academic, emotional, and even physical wellness if not addressed.
Taking time to focus on your financial wellness and pursue positive financial behaviors while in medical school is crucial for financial success now. This will also be important in the future. Learning to manage a student budget is equally as important now as it will be later, when you are managing a budget on a full physician’s salary.
Four Tips to Stay Financially Well in Medical School
How do you stay on top of financial wellness while in medical school? It starts with empowering yourself with knowledge of your current financial situation and utilizing resources to stretch your budget. Strive to continue building skills and increasing financial knowledge each year as you complete your medical education.
Tip 1: Understand Your Financial Aid.
Many students utilize financial aid to pay for their medical education and related expenses, but navigating financial aid can be difficult! Reach out to your financial aid office to meet with your aid coordinator to understand your personal federal and private financial aid options. Once you have met with the experts, consider setting a calendar reminder for important annual and semester financial aid deadlines. Complete your Free Application for Federal Student Aid (FAFSA) annually, review your tuition charges, accept or decline offered financial aid, and build a budget for any student aid refunds you receive each semester.
Tip 2: Set up a Budget.
Budgeting may not be your favorite task each semester, but it can significantly decrease financial stress when you outline a plan for your money. At the beginning of the term, map out your income and expenses. Income sources could be from employment, savings, financial support from your family, or financial aid. For expenses, think of all personal expenses you will have like living expenses, groceries, transportation, etc. Also think about school-related expenses like tuition and fees, study materials, and equipment. Don’t forget to anticipate upcoming expenses. Then, subtract your total expenses from your total income. If your expenses are more than your income, consider reducing your spending on personal expenses, or look for ways to increase your income, like utilizing financial aid or finding flexible employment.
If you need a little help setting up a budget, check out your school's financial wellness resources. Then, visit the AAMC FIRST webpage for a student budget template and create a free account on the interactive AAMC Financial Wellness program at aamcfinancialwellness.com.
Tip 3: Stretch Your Budget by Utilizing Resources.
There is nothing worse than running out of money during the semester. Utilize your campus and community resources to stretch your budget throughout the term. Consider these ideas:
- Search for free- and reduced-cost events and activities. Don’t forget to utilize student discounts!
- Cut grocery expenses by grabbing essentials at your school or community food pantry or by buying in bulk and splitting costs with a roommate.
- Utilize on-campus health and mental health resources at your student wellness center. You can often get reduced-cost care, annual immunizations, and potentially dental work (if you have a student dental clinic run by the dental school) all on campus!
- Prioritize applying for scholarships to help reduce reliance on student loans and to pay for additional expenses you incur.
Tip 4: Don’t Hide From Your Debt.
Know what you owe by monitoring the amount of student loan debt you are accumulating each year. At least once a year, log into studentaid.gov. Also, create a separate account with your student loan servicer. When you review your debt, you are better informed to make decisions about financial aid options for the upcoming school year and are better prepared to manage loan repayment once you graduate. AAMC’s Guide to Money Management and Student Loans will walk you through all the steps to get started managing loans and they have a robust calculator to help forecast your future repayment options.
Managing finances in medical school can be a daunting task, but it’s important for your well-being to take time to regularly check up on your financial health. By remembering these four tips each year, you will learn to build valuable financial capability skills that will serve you well during medical school, and beyond!
Kristian Brennon is an Accredited Financial Counselor® currently serving as the Financial Wellness Counselor at the University of Missouri-Kansas City School of Medicine. She is also the creator of Budget Blueprints (mybudgetblueprints.com), a personal finance blog that provides financial literacy resources and budgeting tools.