By Dr. Sumbul, MBBS, MD Anatomy

Medical students and residents receive thorough training in caring for their patients' health. However, when it comes to taking care of themselves, they often fall short. Burnout is common among medical students and residents. In addition to the unending working hours and the struggle to maintain a work-life balance, financial strain further contributes to stress and burnout. Financial literacy is a critical component of the overall wellness of medical students and residents. It is a well-documented problem that needs to be addressed. ^[1]

What is Financial Literacy?

Financial literacy is the ability to understand and effectively use various financial skills, including personal financial management, budgeting, and investing, for a lifetime of economic well-being.^[2]

During medical school, students are often so deeply immersed in learning medicine, patient care, and preparing for exams that they lack knowledge in other important areas relevant to their careers and personal lives. Financial literacy is one of them.

Medical Education Timeline and Costs

1. A Long Road to Becoming a Doctor
   The journey starts with preparing for the MBBS entrance exams. After getting in, students spend 4.5 years studying, followed by a 1-year internship.

2. Postgraduate Exams and Training
   After MBBS, students prepare for NEET PG, which is highly competitive due to limited seats. If selected, postgraduate training takes another 3 years. Some may also go for super-specialisation, which adds 3 more years.

3. Late Start to Earning
   Most medical students don’t start earning until much later, often after 8–10 years of studying. By then, many are already dealing with financial stress.

4. Rising Education Costs
   Medical education is expensive, especially in private colleges. Many students take loans and are under heavy debt before they even start working.

5. Lack of Financial Awareness
   Many students don’t learn how to manage money. This can lead to poor decisions and financial problems in the future.
   

6. Need for Financial Education
   Teaching basic money management in medical school can help students make better financial choices and reduce stress later in life.

What Financial Hurdles Do Medical Students Commonly Face?

1. High Cost of Medical Education

With the rise of numerous private medical colleges, the cost of pursuing a medical degree has significantly increased. Many students are burdened with substantial tuition fees and related expenses.

2. Rising Educational Debt

There is a growing trend of medical students taking out loans to fund their education, leading to long-term debt and financial stress early in their careers.

3. Dependency on Bank Loans for Clinical Setup

Establishing a clinical practice often requires substantial capital, prompting many doctors to rely on bank loans.

4. Lack of Financial Literacy Leads to Poor Decisions

Without adequate financial knowledge, students may end up paying high interest on loans or making poor investment decisions. Financial literacy can empower them to make informed choices, reduce financial burdens, and manage their money wisely.

Why is Financial Literacy Crucial for Medical Students?

1. Better Understanding of Financial Options
   Financial literacy provides a clear understanding of the available options for achieving financial stability. This can lead to early financial freedom and help prevent unnecessary debt, ultimately contributing to a stress-free financial life.
   
   

2. Improved Relationships with Family and Friends
   Early financial stability often leads to timely life decisions such as marriage and family planning, fostering healthy relationships with loved ones and reducing interpersonal stress.
   
   

3. Enhanced Physical and Mental Well-being
   Financial stress can be as harmful as any other form of mental stress, potentially impacting both physical and emotional health. With proper financial planning, medical students can manage their money effectively, afford essential breaks, and maintain a balanced lifestyle.

Closing the Financial Literacy Gap in Medical Education

1. Bridging the Gap in India
   Remarkably few foreign universities offer their medical students and residents a formal, structured co-curriculum to teach financial literacy ^[3]. This significant gap can be bridged by integrating personal financial education in Indian medical colleges, especially to help residents who may be financially unstable.
   
   

2. Integration Through Extracurricular Activities
   The program can be included as part of extracurricular activities and delivered through seminars, webinars, workshops, and conferences.
   
   

3. Practical Financial Skills for Students
   These programs help students learn how to manage their money, create budgets, plan for loans, and make smart financial choices before starting their careers.

Conclusion

Given that financial instability is linked to overall stress, physical and emotional burnout, low quality of life, poor academic and clinical performance, and relationship strain, it is important to address this gap in our medical education curriculum. Improving financial literacy among medical students can improve their financial situation, their physical and mental well-being, and, in turn, the quality of patient care.

References

1. Grewal K, Sweeney MJ. An Innovative Approach to Educating Medical Students About Personal Finance. Cureus. 2021 Jun 10;13(6):e15579. Doi: 10.7759/cureus.15579. PMID: 34277201; PMCID: PMC8270064.]

2. Ahmad FA, White AJ, Hiller KM, Amini R, Jeffe DB. An assessment of residents' and fellows' personal finance literacy: an unmet medical education need. Int J Med Educ. 2017 May 29;8:192-204. Doi: 10.5116/ijme.5918.ad11. PMID: 28557777; PMCID: PMC5457786.

3. Bar-Or YD, Fessler HE, Desai DA, Zakaria S. Implementation of a comprehensive curriculum in personal finance for medical fellows. Cureus. 2018;10:e2013.

_MSM/SE