Financial Literacy

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Financial Literacy is the knowledge gained to implement the most effective and successful money management practices. Financial Literacy is vital for an individuals’ professional and personal growth.   

Our key goal is to provide students with the information and tools to be financially literate and successful. We will provide information and tools on the following financial literacy topics:   

Budgeting

Credit Reports and Scores

Savings

While you are attending Meharry Medical College, you will need to learn how to manage your finances, plan for changes, and prepare for the unexpected. Budgeting will help you build decision-making skills and your financial and academic goals.   

Good Habits for A Sound Financial Future:   

Not all loans are alike, know the differences and borrow wisely

Budget your money just as carefully as you budget your time; put yourself on a monthly budget and stick to it.

You only need one credit card, and it should only be used in emergencies

Get in the habit of saving even if you can only save $5 per month

Keep accurate records of your total debt and minimize it

Do not start living the lifestyle of a health professional until you have completed your training

Plan now for the financial future you want

You may not be offered as much money as you expect when you graduate, so plan accordingly by estimating now what your discretionary (after-tax) income will be after school

You are making an investment in your future; make sure the benefits of the investment exceed all costs.

If you need tips with creating a budget, please visit the U.S. Department of Education’s Federal Student Aid website.   

Student Budget Worksheet

How to Create a Budget Video

A credit report is a record of your credit activities. It lists any credit card accounts or loans you may have, the balances, and how regularly you make your payments. It also shows if any action has been taken against you due to unpaid bills. Potential creditors and lenders use credit reports as a part of their decision-making process to decide whether to extend you credit and the terms.   

A credit score is a number that summarizes a person’s credit risk based on your credit file and helps lenders to evaluate your creditworthiness.   

Here is the breakdown of the credit score ranges:   

800 – 850	Excellent
740 – 799	Very Good
670 – 739	Good
580 – 669	Fair
300 – 579	Poor

The five factors that affects your credit score are:   

Payment History – 35%: lenders are most concerned about whether you paid your bills on time. Paying late has a negative effect on your score.

Amounts Owed -30%: measures how much debt you have compared to your available credit limits.

Length of Credit History – 15%: a longer credit history is favorable because it gives more information about your spending habits. A longer history if reliable borrowing means your score will be higher

New Credit – 10%: people who open many new credit accounts in a short amount of time are seen as riskier borrowers. Too many applications for credit can mean that you are taking on a lot of debt or that you are in financial trouble.

Type of Credit Used – 10%: having different kinds of accounts is favorable because it shows that you have experience managing a mix of credit. This is not a significant factor in your credit score unless you do have much other information on which to base your score.

For students who borrow Graduate PLUS loans every academic year, will need to check your credit report for free once a year at the Annual Credit Report website.   

If you would like to learn more about credit reports and scores, please visit the USA website.   

Understanding Your Credit Score Video

This video of a Sofi presentation provides helpful information for understanding your credit score.

The Association of American Medical Colleges (AAMC) has created FIRST for webinars about student loans, loan repayment, money management, budgeting, credit and more.    

As a Meharry Medical College student, you may create your account with AAMC to gain more knowledge about Financial Literacy and watch the FIRST videos and webinars through AAMC’s website.    