An assessment of residents’ and fellows’ personal finance literacy: an unmet medical education need

Abstract

ObjectivesThis study aimed to assess residents’ and fellows’ knowledge of finance principles that may affect their personal financial health. MethodsA cross-sectional, anonymous, web-based survey was administered to a convenience sample of residents and fellows at two academic medical centers. Respondents answered 20 questions on personal finance and 28 questions about their own financial planning, attitudes, and debt. Questions regarding satisfaction with one’s financial condition and investment-risk tolerance used a 10-point Likert scale (1=lowest, 10=highest). Of 2,010 trainees, 422 (21%) responded (median age 30 years; interquartile range, 28-33). ResultsThe mean quiz score was 52.0% (SD = 19.1). Of 299 (71%) respondents with student loan debt, 144 (48%) owed over $200,000. Many respondents had other debt, including 86 (21%) with credit card debt. Of 262 respondents with retirement savings, 142 (52%) had saved less than $25,000. Respondents’ mean satisfaction with their current personal financial condition was 4.8 (SD = 2.5) and investment-risk tolerance was 5.3 (SD = 2.3). Indebted trainees reported lower satisfaction than trainees without debt (4.4 vs. 6.2, F (1,419) = 41.57, p < .001). Knowledge was moderately correlated with investment-risk tolerance (r=0.41, p < .001), and weakly correlated with satisfaction with financial status (r=0.23, p < .001). ConclusionsResidents and fellows had low financial literacy and investment-risk tolerance, high debt, and deficits in their financial preparedness. Adding personal financial education to the medical education curriculum would benefit trainees. Providing education in areas such as budgeting, estate planning, investment strategies, and retirement planning early in training can offer significant long-term benefits.

Financial Attitudes and Behaviors of Internal Medicine and Internal Medicine–Pediatrics Residents

“…Our findings were similar to those of previous educational studies, where residents from various specialties were mostly described to have high educational debt and limited financial preparedness. 5,6,8,9,11 In our study, we were able to categorize residents' financial behaviors and attitudes in relation to their concern over educational debt. Our data showed that while a significant portion of residents engage in positive financial behaviors, a subset have high debt, lower levels of concern, and fewer positive financial practices compared with their peers.…”

“…3 Surveys of residents reported low rates of financial knowledge, high levels of debt, and deficits in financial preparedness. [4][5][6] High levels of educational debt among internal medicine residents have been associated with high burnout and low quality of life. 7 Lack of financial planning during residency can have long-term effects.…”

Personal Finance Education for Residents: A Qualitative Study of Resident Perspectives

“…The high level of resident interest in financial education found in this study is consistent with the experience of faculty who lecture on this topic . This high level of interest combined with the low levels of financial knowledge reported here and described previously suggest that this educational need is not being met by existing resources …”

Financial Health for the Pathology Trainee: Fiscal Prevention, Diagnosis, and Targeted Therapy for Young Physicians

“…Medical training is woefully bereft of financial education, and freshly minted pathologists-like all new physiciansare often left rudderless when it comes to navigating their personal finances. [1][2][3][4] Most trainees would rather spend time learning how to diagnose disease than translating the foreign language of finance. Meanwhile, the burden of student debt, modest resident salaries, and the societal pressures of ''physician wealth'' can lead to financial despair, depression, and burnout during training.…”

“…Meanwhile, the burden of student debt, modest resident salaries, and the societal pressures of ''physician wealth'' can lead to financial despair, depression, and burnout during training. 2,3 The lack of fiscal knowledge can also leave pathology graduates vulnerable to monetary missteps that can impact them for the rest of their lives: allocating investments inadequately and haphazardly, sitting on debt unnecessarily, and escalating spending carelessly. Fortunately, prudent moves early in one's career can prevent these problems and set up new-in-practice pathologists for a stable financial future.…”