Why Financial Literacy Matters for Dental Students: Reducing Debt Account Aversion to Improve Debt Management

Area of Science:

• Dental Education
• Behavioral Economics
• Financial Literacy

Background:

• Dental graduates in South Korea often face significant debt for private practice establishment.
• Formal financial education is largely absent from undergraduate dental curricula.

Purpose of the Study:

• To investigate the prevalence of debt account aversion (DAA) among South Korean dental students.
• To determine if financial literacy influences susceptibility to DAA.

Main Methods:

• A cohort of 71 dental students completed a financial literacy test and a 25-round debt management game.
• Debt account aversion was quantified using a DAA index based on repayment allocation to the smallest debt.
• The primary outcome was the total remaining debt after the game.

Main Results:

• Students exhibited DAA, resulting in higher-than-optimal remaining debt.
• Financial literacy was inversely correlated with DAA and total debt.
• Mediation analysis confirmed that financial literacy reduced total debt by lowering DAA.

Conclusions:

• The findings underscore the need for integrating financial education into dental programs.
• Enhanced financial literacy may reduce DAA, improving debt management and practice sustainability.
• Addressing DAA can positively impact the quality of patient care.