Financial Literacy 101 for the Otolaryngologist: Your First Step to Freedom

PROGRAM DESCRIPTION: Basic financial literacy persists as a major educational gap in US medical education. With external cost pressures continuing to destroy the financial stability of fee-for-service payment models, physicians are woefully unprepared for a future in which they need to be financially independent with multiple income streams. While financial literacy is an exceptionally broad topic that cannot be covered in a single session, this session aims to provide a basic foundational understanding of business of medicine, personal finance, and provide the audience with the tools to begin their journey to financial independence. Beginning with an overview of basic terminology, concepts, and techniques in personal financial management, this session will include insight into reimbursement models, understanding scalable vs non-scalable work, risk stratification and mitigation, goal-oriented financial strategy and budgeting, understanding debt management, and clarifying many investment pitfalls commonly offered to physicians. We will then provide examples of different financial scenarios and discuss with the panelists advice for each scenario. This panel will NOT provide specific financial advice or advisory services but will function as a springboard for participants to obtain more education and experience. Financial literacy is no longer an optional skill for the practicing otolaryngologist. Unfortunately, most high-earning individuals lack basic instruction in personal and medical finance. Consequently, when going from significant debt and low earnings to significant debt to high earnings, they often suffer similar pitfalls to professional athletes, finding themselves living financially strapped despite their high earnings. The paucity of formal education leads to physicians being targets of predatory financial schemes or mediocre advisors. Understanding personal finances is a foundational step in the journey to financial literacy, a fulfilling career, and the ability to secure the future of our specialty.

OUTCOME OBJECTIVE 1: Define basic personal finance terminology and demonstrate some considerations with respect to creating a budget and balancing financial vehicles

OUTCOME OBJECTIVE 2: Discuss strategies to manage debt and determine various considerations of prioritization

OUTCOME OBJECTIVE 3: Discuss different investment options, including how to evaluate risks and returns. Understand risk mitigation strategies, discuss how to deploy objectives and key results framework, and review techniques for goal optimization and monitoring.

BACKGROUND STATEMENT: The lack of formal financial education handicaps many physicians from reaching their full potential and lead to professional and personal stress. By equipping participants with the tools to take control of their finances, we hope this will be their first step to financial freedom.

Comprehensive Otolaryngology Track Statement :