Many radiology residents facing double-whammy of heavy debt burden, poor financial literacy
Many radiology residents are grappling with the double-whammy of a heavy debt burden coupled with poor financial literacy, according to new data published Monday in Clinical Imaging [1].
About 60% of those surveyed said they had more than $100,000 in liabilities after graduating from medical school. Another 79% of diagnostic radiology residents reported no formal coursework in finance, a number that was even higher among interventional specialists (87%).
Researchers believe this information underlines the growing importance of educating early career physicians about this topic.
“According to the survey data, diagnostic and interventional radiology resident physicians have some fundamental knowledge but often lack formal training regarding loans, real estate, retirement and investments, and insurance, which may help them make the difference to improve future financial outcomes,” Laura E. Minton, an MD candidate at the University of Alabama at Birmingham School of Medicine, and co-authors wrote Jan. 15. “Future research should focus on actionable steps to better integrate financial literacy into medical and residency education training.”
For the study, UAB researchers sent their 10-question survey to nearly 300 diagnostic and interventional radiology residency programs. A total of 198 individuals responded including 149 in diagnostics and 49 interventional specialists. Most rad residents did not understand the best way to minimize the burden of their loan payments. About 46% said they would seek to refinance to lower the interest rate versus 26.5% who made the correct choice—changing to a repayment plan through which one must pay 10% of their annual income. About 69% said they wanted to learn more about real estate as an investment, and 34.5% were curious to know more related to taking out a mortgage.
On the retirement front, 76.5% understood the value of compound interest compared to cashing out the annually accrued interest every year. But only 63.2% had a firm grasp on how to maximize employer 401(k) contributions.
“Retirement planning education could help residents begin their retirement preparations before they sign their first contract,” the authors noted. “A structured financial education curriculum could also better prepare residents for real estate purchases, investments and insurance.”
Read more about the survey results, including potential study limitations, at the link below.
Marty Stempniak has covered healthcare since 2012, with his byline appearing in the American Hospital Association's member magazine, Modern Healthcare and McKnight's. Prior to that, he wrote about village government and local business for his hometown newspaper in Oak Park, Illinois. He won a Peter Lisagor and Gold EXCEL awards in 2017 for his coverage of the opioid epidemic.