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A Financial Check-Up for Nurses

By U.S. News & World Report

When Mary Beth Winkeljohn became a family nurse practitioner, she also had to navigate some big financial decisions. Part of her compensation included funds to allocate toward health insurance, disability and retirement. With help from a financial professional, she made selections that had a lasting impact on her future financial security.

Many nurses, she says, face similar choices, but might not feel prepared for them because nursing programs don’t generally include classes on business, personal finance or economics. “Nurses might be at a disadvantage when it comes to making long-term investment and financial decisions,” says Winkeljohn, who resides near Baltimore, Maryland.

That sentiment is also reflected in a recent survey of 356 nurses by Fidelity, the largest provider of workplace retirement savings plans to not-for-profit health care organizations. More than half of the nurses surveyed (56 percent) said they “lack confidence in making financial decisions,” and 4 out of 10 attributed that to having too little time to focus on their finances.

“They’re so busy taking care of everyone else except themselves,” says Kerry Sweeney, vice president at Fidelity Investments. “We want to ask them to pause and make sure they’re taking care of themselves.”

The news isn’t all bad, however. Most nurses (84 percent) are saving for their futures, and their average total savings rate, after accounting for employer matches, is 12 percent, which is close to Fidelity’s suggested 15-percent rate. (The average rate for all Americans is around 10.5 percent, according to Fidelity’s data, so nurses are doing better than average.) Most nurses invest through age-base asset allocation choices, which shift into more conservative securities as the professionals approach retirement — another smart choice.

“They are motivated to learn about financial planning, but they are just so busy,” Sweeney says. That’s why she encourages nurses to take advantages of the financial planning resources available to them through their workplaces. Even if they have just 20 minutes, they could call a financial professional available through their workplace savings plan and review their account and investment selections. The website fidelity.com/nurses is also designed to provide nurses with easy – to use – guidance.

Hospitals could make it easier for nurses by bringing in a financial advisor to work with nurses on the night shift, which often gets overlooked, says Alexandra Robbins, author of the newly-published book, “The Nurses: A Year of Secrets, Drama, and Miracles with the Heroes of the Hospital.” First-year nurses and nurses new to the facility could also benefit from the services of a hospital-assigned financial advisor, she adds. Many nurses told her they were unaware of the workplace resources that could help them manage their finances and retirement savings.

Another challenge that Robbins observed as she reported her book was the costs associated with nursing jobs. “Nurses typically have to pay for their own uniforms, which means they’re spending about $300 every six months, on top of [buying] a nursing jacket, stethoscope, nursing shoes, student loans, [and covering] gas and transportation costs. Some hospitals charge nurses to park at work while they don’t charge physicians, techs and other staff members,” she says.

Here are three more ways nurses can give their finances a boost:

Take advantage of workplace help. Contributing to a retirement account to receive any available matching benefits can help nurses achieve their retirement savings goals, as can attending any available on-site seminars or webinars about money management. The most important step is just to set aside time to check in on your finances and make any necessary adjustments, Sweeney says. Fidelity’s survey found that around 17 percent of nurses currently take advantage of in-person, phone or online guidance offered through their employer.

Prioritize retirement savings. Many hospitals have had to reduce or eliminate their retirement programs due to budgeting constraints, Winkeljohn says, and it’s hard for nurses to save more on their own. “Nurses may feel their income has to be split too many ways without enough left over for aggressive retirement contributions,” she says. Still, increasing savings by even small amounts over time can add up.

Don’t borrow against yourself. Sweeney says that according to Fidelity’s data, a rising number of people are taking out loans against their retirement, which can come with fees as well as deplete those savings. Almost 20 percent of nurses currently have an outstanding retirement account loan, Fidelity found, compared to 14 percent in 2012. “Be careful about touching your retirement savings,” she says. “It’s there for a reason.”

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A Financial Check-Up for Nurses originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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