High costs can lead to stress and debt, but with smart financial habits, students can manage their finances, minimize debt, and build a foundation for future stability.
1. Create a Budget
Focus first on creating a budget—a roadmap for managing your income and expenses, living within your means, and avoiding unnecessary debt. As a medical student, your income might
come from scholarships, student loans, part-time work, or family support; your expenses will include tuition, rent, utilities, food, books, transportation, and personal items.
First, track your income and expenses for a month to see where your money goes. Record your financial transactions with an app like Mint, YNAB (You Need A Budget), or a spreadsheet. Categorize your expenses into essential (rent, food, utilities) and non-essential (eating out, entertainment, shopping). Now, review your financial situation and set realistic spending limits for each category.
Example: If you’re spending $200 a month eating out, you could save $150/month (or $1,800/year) by reducing that monthly amount to $50 and cooking at home more often. Use that savings to pay off debt or build an emergency fund.
2. Minimize Debt
Student loans are often essential for medical education but managing the amount you borrow is crucial. To minimize debt, only borrow what you need and understand the terms of your loans.
Before accepting a loan, review the interest rates, repayment terms, and any potential fees. Federal loans typically offer more favorable terms than private loans, such as income-driven repayment plans and loan forgiveness programs for public service workers. Use credit cards sparingly, as high interest rates quickly lead to unmanageable debt.
Example: Decline a student loan package that includes $5,000 more than you need. Instead, reduce your living expenses by, say, sharing an apartment with a roommate.
3. Seek Financial Aid
Many financial aid opportunities exist to offset your costs. Scholarships and grants do not need to be repaid!
Research and apply for as many scholarships and grants as you qualify for. Ask your financial aid office about institutional scholarships. Organizations such as the American Medical
Association (AMA) and the National Health Service Corps (NHSC) provide scholarships and loan repayment programs, too.
Example: If you're pursuing primary care, consider applying for an NHSC scholarship. It offers financial help in exchange for working in an underserved area after graduation.
4. Limit Non-Essential Spending
Enjoy life and take breaks from the rigors of medical school. But prioritize your financial health by living within your means.
Use your .edu email for discounts on software, news, and entertainment. Show your student ID to save locally. Rent vintage clothes for that party. Use coupon websites or apps like Honey,
Rakuten, or RetailMeNot for online discounts. Sign up for exclusive deals for students at UNiDAYS or Student Beans.
Stop spending that doesn’t improve your quality of life. Buy coffee from a chain for a splurge, but home-brew most other days. Dine out on special occasions, host movie nights with friends,
hike or attend campus events to economize.
Example: If your local café is pocketing $100/month, switch to homemade half the time and keep $600/year for yourself.
Conclusion
Achieving financial wellness as a medical student might seem challenging, but it’s absolutely within your reach with the right approach. Strategic planning and disciplined spending grant you control of your finances during medical school. Adopting a balanced and practical budget, minimizing debt, tapping into financial aid, curbing non-essential expenses, and uncovering savings will propel you over med school’s financial hurdles and lay the groundwork for a prosperous future as a physician. Embrace the goal of living within your means now so you’re ready for the financial responsibilities of a rewarding medical career. Your journey to financial success starts today!
About the Authors: The authors are all co-directors of a financial wellness elective at Hackensack Meridian School of Medicine called “Dollars and Sense for Medical Students”.
John Schiavone, MBA is the Chief Operating Officer at Hackensack Meridian School of Medicine.
Naomi Ambalu, DO is the Assistant Dean of Student Affairs and Wellbeing and Assistant Professor of Psychiatry and Behavioral Health at Hackensack Meridian School of Medicine.
Jojy Cheriyan, MD is an Assistant Professor of Neurology at Hackensack Meridian School of Medicine.
Joshua Josephs, MD is the Course Lead of Health Systems Science and Assistant Professor of Internal Medicine at Hackensack Meridian School of Medicine.