Money Monday

Personal finance in the digital age

Screen Shot 2014-11-21 at 4.52.29 PMWatch the video in this post from Ryan Schulte, a partner in financial advising from Envision Wealth Group. Ryan has been working with dental students and dentists for many years. He says one of the biggest things people are noticing across the country is the mess being made from lack of personal financing. Budgeting is important! The digital age makes it too convenient to venmo your friends, set “auto-reload” to your Starbucks account app, or buy pretty much anything by synching your credit card with the Target app. On average, people are only saving 3-4% of their income. We should be aiming for around 15-20% in savings. Shocking, but with hard work and dedication, you’ll be happy you did!

Know the drill on health insurance marketplaces

142030139For the first 21 years of my life, I did not have dental insurance. I just paid out-of-pocket costs whenever I needed care. For me, this wasn’t an issue because I took care of my teeth and, thankfully, didn’t have many problems. I always assumed, however, that if a problem ever did arise, getting the information on attaining dental insurance would be as simple as asking my dentist.

Calculating the costs and benefits of a residency

474213179(1)For many students, the choice between doing a residency and going straight into private practice is a tough one. In today’s world of growing student debt, it’s important to be aware of the costs and benefits of each.

Here’s a simple model. The American Dental Education Association says 2013 dental school graduates had an average debt of $241,000. If you graduate with the average debt and do a one-year residency, your debt will generate around $15,000 in interest during your first year out. (This assumes 6.8% interest rates.)

Credit cards revisited

credit-cardsWe have covered this topic before, but with the increasing costs of attending school and living in some of the major cities where schools are located, it is a topic worth revisiting. Credit card debt is some of the most easily accessible debt to students, but also the most harmful. Many students, already living off of debt in the form of school loans, do not think twice about charging necessary living expenses and other “standard of living” expenses to their credit cards.