Personal Financial Considerations for Physicians

It is often difficult for medical students to understand the extent of the educational debt that they may incur. They often struggle with managing their finances during training and after they begin to practice medicine. Students make their choice of specialty without fully considering how their decision may affect their lifestyle and their ability to pay off their loans. This has led to a serious shortage in primary-care physicians. In addition, because physicians undergo an extensive training period, they are often late in planning for and funding for their retirement. Understanding the time-value of money and being able to make informed decisions regarding repaying loans versus meeting other financial obligations are important factors to addressing this problem. Financial literacy is not being taught in medical schools and residency programs, although there is a perceived need. Developing a financial plan that involves both paying off debt and saving for retirement is usually the best course of action.