The majority of residents feel unprepared to manage their finances and want formal financial education to be incorporated into residency. Educating residents has the potential to reduce financial stress and improve physician wellbeing.
Summary:
Personal physician finance is an often overlooked and underdiscussed source of stress that impacts resident wellbeing and success. The average student loan debt has reached over $215,000 and most residents feel unprepared to manage their finances.
The authors evaluated perceptions of financial literacy among residents, the level of financial education incorporated across programs, and the resources that residents utilize to obtain information about personal finance. To answer these questions, they performed a systematic review of articles published between 2012-2022; they ended up with 23 studies evaluating a total of 5146 residents.
14 studies evaluated resident perceptions of their financial literacy. 42-79% of residents reported a “below average” understating of finance and felt unprepared to handle future financial decisions. Deficiencies included investing, retirement, negotiating salaries, mortgages, insurance, and tax planning.
In addition, 80% of residency program directors believed that their residents were unprepared to handle personal and professional financial decisions after graduation. 79-95% of residents agreed that personal finance should be taught during residency. Despite this, only up to 36.7% of programs provided financial education, depending on the study. In the absence of formal curricula, residents turned to personal research, family members or outside financial planning seminars.
Options for financial education interventions included financial workshops and lectures on topics ranging from debt repayment, billing compliance, medical malpractice, contract negotiation, financial management and many other topics. When administered, these interventions were well received by residents with over 95% of participants recommending continued programming. In addition, pre- and post-tests showed significant improvements in financial literacy knowledge. More work needs to be done to tie these interventions with financial outcomes, such as retirement savings program participation, insurance coverage, and financial planning.