Financial Education and Wellness

The Financial Education and Wellness curriculum developed by the AAMC's Committee on Student Financial Assistance (COSFA) provides medical students with the practical knowledge and tools necessary to make effective financial decisions compatible with their personal financial philosophy. Financial wellness is achieved through knowledge of the basic principles of money, the ability to make financial decisions based on facts and sound reasoning and a fully developed and well balanced plan for managing one's financial life that is integrated with personal values and goals.

The five financial competencies are:

1. Identifying Values About Money (PPT)
   Explores the concept of value-based money management.

2. Identifying and Understanding the Concept of Goal Setting (PPT)
   Helps to identify short-, mid-, and long-term goals and create a strategic action plan for reaching those goals.

3. Creating and Maintaining a Budget (PPT)
   Living within a budget is crucial during all phases of education. This phase examines how student lifestyle choices continue to impact the future physician's lifestyle.

4. Understanding Credit and the Cost of Borrowing (PPT)
   Addresses how to properly use credit, good credit or bad credit, credit history, obtaining and reading a credit report.

5. Understanding the Mechanics of Earning and Saving Money (PPT)
   Examines the close relation of financial resources in respect to fixed expenses, loan commitments, and desired/planned purchases.

Mastery of these competencies is a slow and evolutionary process. They should be taught in order and one at a time, as each builds upon the previous one. In addition, values and priorities sometimes change with age. It's important that these lessons be revisited and financial aid professionals be consulted when making major life decisions.

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