Personal Financial Literacy Among U.S. Medical Students

Abstract

This article was migrated. The article was not marked as recommended. Background: Personal financial literacy is associated with successfully managing debt, investing for retirement, and coping with financial strain. Though medical students occupy a financially unique niche due to high debt, little is known about their financial literacy. In this study, the authors' objective was to assess financial literacy among medical students and to evaluate demographic, educational, and financial factors associated with financial literacy. Methods: In March to April 2015, the authors administered a cross-sectional survey to all first- (M1) and fourth-year (M4) medical students at seven geographically distributed U.S. medical schools. The survey measured performance on a financial literacy assessment, educational debt burden, and past retirement contributions. Results: The survey response rate was 37.5% (1052/2806). Students answered 47.4% of the financial literacy questions correctly. Factors associated with higher (above-the-median) financial literacy performance included male gender (Odds ratio [OR] = 2.19; 95% confidence interval [CI]: 1.70-2.83; P <0.01), joint MD/MBA degree (OR = 2.47, 95% CI: 1.24-4.90; P = 0.02), finance-related undergraduate major (OR = 5.79, 95% CI: 1.02-32.92; P = 0.05), self-assessed financial knowledge (OR = 1.79, 95% CI: 1.45-2.20; P <0.01), and confidence in personal financial management (OR = 1.19, 95% CI: 1.01-1.42; P = 0.05). Financial literacy among M4s who had received school-provided personal financial counseling or information was not significantly higher than those who had not received it (50.7% vs. 50.0%, P = 0.79). A 1 percentage point increase in financial literacy performance was associated with a 3% increase in the odds of contributing to a tax-advantaged retirement account (OR = 1.03, 95% CI: 1.02-1.05; P <0.01) and over a $600 decrease in debt (β = -$642, 95% CI: -$1123-$161; P <0.01). Discussion: Financial literacy among both first-year and fourth-year U.S. medical students was low. School-provided personal financial counseling or information for fourth-year students was not associated with improved financial literacy. Students with higher financial literacy incurred less debt and were more likely to invest for retirement.