Knowing where your income goes and allocating for fixed expenses (tuition, health insurance, rent / mortgage, student loan payments, etc.), variable expenses (other costs of living, entertainment, etc.), and savings provides a solid foundation for financial wellness. Budgeting and being wise about money management is a practice that should begin right now.
The cost of attendance details what your estimated costs will be for the year, but should (ideally) serve as an upper limit. Whenever possible you should try to borrow less. Also, you should note that if ever you borrow more than what you ultimately need, you can return the funds through the Office of Financial Aid. As long as this is done within 120 days from the date of disbursal, the interest and fees on the returned portion of the loan will be cancelled.
Some tips for limiting your spending while in medical school include:
- Avoid eating out
- Skip the expensive, fancy coffees and make your own
- Never buying bottled water
- Limit credit card use
- Avoid late fees and pay your bills on time
- Avoid ATM fees
- Buy used books
- Think about purchases—do you really need it?
- Make a budget!
For more advice and budgeting tools, visit: www.aamc.org/first.