Financial literacy education is a curriculum requirement in medical school as it equips learners with the knowledge and financial skills to manage loans, allowances, budgets, investments, and expenses. We provide learners with techniques and strategies to ensure long term financial stability after graduation. The Financial Aid Office and Theme 6 financial curriculum committee at NOSM University deliver financial content through presentations and sessions that cover a variety of different topics including available financial aid programs, budgeting tools, line of credit interest and loan details, strategies for borrowing, credit scores, how doctors get paid, insurance providers, managing debt, along with information about repayment plans and assistance programs after graduation. By sharing resources and recommended actions we enable each learner to become financially self-sustainable through medical school and in practice.
Living Expenses
Canada’s inflation rate has increased approximately 14% since January 2021 with an average of 4% inflation per year which is double the rates annually pre-pandemic. The cost of living today for ONE individual in Ontario is approximately $3,500 / month which is equal to $42,000 per year. As a medical student it is important to consider the cost of living along with tuition and registration fees. The average total expenses you can expect annually are approximately 50k – 70k+ equaling a 4 year sum of approximately 200k – 300k. Each learner’s situation is different as some own homes, live with a relative or family member, have children, have previous education debt, or some may be financially supporting others which may play a factor in what a healthy budget can look like.
Budgeting
Fixed and Variable Expenses
Fixed Expenses
- Fixed expenses are costs that do not change and that you can anticipate every month. (rent/ mortgage, subscriptions, groceries, phone bill, Insurance)
Variable Expenses
- Variable expenses are costs that fluctuate often and can be inconsistent month to month. (entertainment, personal care, emergencies, replacement and repairs, shopping, travel, and gifts.)
Understanding fixed and variable expenses and how to cut costs.
- Limit the “extras”
- Use student discounts where applicable.
- Meal prepping and bringing lunch to school.
- Limit daily Starbucks, Tim Hortons and café expenses. Use the Wellness Room café!
- Don’t upgrade technology unless you need to (phones, laptops, TV’s)
- Give gifts within your means.
- Limit unnecessary travel
- Carpool
- Easily manage your spending by giving yourself a budget for fixed cost items such as groceries, clothes, transportation, rent/mortgage, hobbies.
Budgeting is a self-developed plan to manage your income and expenses to help achieve your financial goals and ultimately minimize your debt accumulation and live financially sustainable. Budgeting is a tool many learners utilize to measure spending and to identify a weekly or monthly allowance. The biggest shock for incoming medical learners is the adjustment to little or no income during studies and the substantial expenses associated with medical school and cost of living. Spending habits tend to change very quickly and some sacrifices must be made in order to manage your loans and financial resources appropriately. The NOSM University Financial Aid Office offers personalized one-on-one financial consultations and a free budgeting template for NOSM U learners. Please email financialaid@nosm.ca for more information.
External Financial Resources
As a medical student, it’s essential to take control of your financial future by exploring various online resources designed to help you navigate the complexities of student loans, budgeting, and long-term financial planning. With so many tools available, you can find guidance tailored to your unique situation, from managing education-related debt to understanding investment strategies for the future. By doing your own research, you can discover valuable calculators, budgeting apps, and financial planning platforms that will help you make informed decisions throughout medical school and beyond. Taking the time to explore these resources now will help you make positive financial choices for the future and better prepare for the financial challenges and opportunities that lie ahead in your medical career.
