Personal Financial Considerations for Physicians

2021 ◽  
pp. 239-258
Author(s):  
Gia Merlo
Keyword(s):  
Financial Literacy ◽  
Primary Care Physicians ◽  
Time Value Of Money ◽  
Residency Programs ◽  
Perceived Need ◽  
Time Value ◽  
Educational Debt ◽  
Course Of Action ◽  
Financial Plan ◽  
Value Of Money

It is often difficult for medical students to understand the extent of the educational debt that they may incur. They often struggle with managing their finances during training and after they begin to practice medicine. Students make their choice of specialty without fully considering how their decision may affect their lifestyle and their ability to pay off their loans. This has led to a serious shortage in primary-care physicians. In addition, because physicians undergo an extensive training period, they are often late in planning for and funding for their retirement. Understanding the time-value of money and being able to make informed decisions regarding repaying loans versus meeting other financial obligations are important factors to addressing this problem. Financial literacy is not being taught in medical schools and residency programs, although there is a perceived need. Developing a financial plan that involves both paying off debt and saving for retirement is usually the best course of action.

scholarly journals Financial literacy among high school teenagers in a developing country context - an empirical study with reference to high school students in Addis Ababa, Ethiopia

2021 ◽  
Vol 12 (5) ◽  
pp. 1436-1452
Author(s):  
Yohannes Workeaferahu ELifneh
Keyword(s):  
High School ◽  
High School Students ◽  
Financial Literacy ◽  
Addis Ababa ◽  
School Students ◽  
Time Value Of Money ◽  
Time Value ◽  
Classification Code ◽  
Money Illusion ◽  
Value Of Money

Both developed and developing countries and economies have become increasingly concerned about the level of financial literacy of their citizens. Previous studies indicate that unlike the case in the industrialized world, the issue of financial literacy is a contemporary issue in the developing world, and it is an understudied field in this context. This study was initiated to survey the level of basic financial literacy among high school students in Addis Ababa, Ethiopia’s capital. Such a study corresponds to global initiatives such as by OECD requesting scholars to show case the level of financial literacy among young people in different countries/contexts. The data collection instrument was a standard questionnaire that measures the level of basic financial literacy of high school teenagers in Ethiopia. The questionnaire is based on the instrument originally developed by Lusardi and  Mitchell, (2005); and this study uses the slightly updated version used by Van Rooij, Lusardi and Alessie, (2011) that measures basic financial literacy from angles of numeracy, interest compounding, inflation, time value of money, and money illusion. The study concludes that the level of financial literacy is not fairly good among the high school students. The high school students in the capital are not well versed with the basic financial literacy dimensions/measurements, mainly with the assessments of interest compounding, inflation, time value of money, and money illusion. The worst assessment results are a 90.8% failure in the money illusion question, a 70.9% failure in interest compounding assessment question, and a 62.7% failure in the time value of money assessment question. These are followed by a 58.4% failure in the inflation assessment question and a 31.3% failure in the easiest assessment question of numeracy. By and large, these findings testify that the high school students in Addis Ababa have serious deficiency in basic financial literacy. Policy makers and educators may need to seriously pay attention to this shocking deficiency in the level of basic financial literacy among the high school students and take measures to educate the youth this basic life skill at young age while they are still at school.JEL Classification Code: D14

scholarly journals PELATIHAN MANAJEMEN KEUANGAN UNTUK MENINGKATKAN LITERASI KEUANGAN BAGI CALON GURU UNIVERSITAS ABDURACHMAN SALEH SITUBONDO

2021 ◽  
Vol 1 (3) ◽  
pp. 253-258
Author(s):  
Lisana Oktavisanti ◽  
Riza Afita Surya
Keyword(s):  
Community Service ◽  
Financial Literacy ◽  
School Teacher ◽  
Study Program ◽  
Time Value Of Money ◽  
Time Value ◽  
Education Study ◽  
Service Activity ◽  
Value Of Money ◽  
Personal Financial Planning

This community service activity is carried out with the target students of the Abdurahman Saleh University Elementary School Teacher Education Study Program Situbondo. Partner problems that are a priority and need to be resolved through this PKM program are (1) the low level of financial literacy among students, (2) knowledge and understanding of the concept of assets and liabilities, (3) knowledge and understanding of the time value of money, and (4) knowledge and understanding of the concept of risk in finance. The solutions to be achieved include: (1) providing training on the concept of assets and liabilities, (2) providing training on the time value of money, (3) providing training on the concept of risk in finance. The expected outcomes of this PKM activity are (1) increased knowledge and understanding of the concept of assets and liabilities, (2) increased knowledge and understanding of the time value of money, (3) increased knowledge and understanding of the concept of risk in finance, (4) Able to make personal financial planning

scholarly journals Teaching Time Value Of Money Using An Excel Retirement Model

2012 ◽  
Vol 5 (6) ◽  
pp. 663-676
Author(s):  
Fernando Arellano ◽  
Liz Mulig ◽  
Susan Rhame
Keyword(s):  
Financial Literacy ◽  
Model Building ◽  
Business Students ◽  
Real Life ◽  
Retirement Planning ◽  
Traditional Teaching ◽  
Time Value Of Money ◽  
Time Value ◽  
Traditional Teaching Methods ◽  
Value Of Money

The time value of money (TVM) is required knowledge for all business students. It is traditionally taught in finance and accounting classes for use in various applications in the business curriculum. These concepts are also very useful in real life situations such as calculating the amount to save for retirement. This paper details a retirement model that can be built during class to teach TVM. While traditional teaching methods give small pieces of the TVM picture, then exercises to reinforce that partial knowledge, this model incorporates many TVM techniques into one Excel modeling exercise. The model incorporates both TVM functions that are included in Excel and other formulas that must be entered into Excel by the student modeler. Unlike some other articles that focus on how much should be saved annually assuming a constant salary, this exercise focuses on a percentage of income to be saved. The model also addresses an assumed growth factor in the salary and the issue of inflation. This modeling tool is presented to adults in graduate level classes, so it incorporates the fact that they might already have some savings coming into this retirement planning exercise. This method of teaching TVM has several objectives. Primarily, the exercise contributes to the learning of TVM concepts and techniques. It also shows how the equations modeled here can be used to solve retirement planning questions, while contributing to the personal financial literacy of students, and improving model building skills in Excel.

The Time Value of Money Concept in Islamic Finance

2006 ◽  
Vol 23 (1) ◽  
pp. 66-89
Author(s):  
Abu Umar Faruq Ahmad ◽  
M. Kabir Hassan
Keyword(s):  
Basic Element ◽  
Islamic Finance ◽  
Purchasing Power ◽  
Conventional Theory ◽  
Modus Operandi ◽  
Time Value Of Money ◽  
Time Value ◽  
Value Of Money ◽  
Future Date ◽  
Rule Out

The time value of money is a basic investment concept and a basic element in the conventional theory of finance. The Shari`ah does not rule out this consideration, for it does not prohibit any increment in a loan given to cover the price of a commodity in any sale contract to be paid at a future date. What is prohibited, however, is making money’s time value an element of any lending relationship that considers it to have a predetermined value. Here, the Shari`ah requires that a loan be due in the same currency in which it was given. The value (i.e., purchasing power) of paper currencies varies due to changes in many variables over which the two parties of a loan contract usually have no control. This study examines possible modus operandi of time valuation according to the Shari`ah’s precepts vis-à-vis the concept of money, and whether any value can be attributed to time while considering money’s value. For this purpose, it investigates the juristic views on such relevant issues as the permissibility of difference between a commodity’s cash and credit prices and an increase and reduction of the loan’s amount in return for early repayment.

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