PhD students can live on a modest stipend and still save for the future, financial planners say.Credit: Images By Tang Ming Tung/Getty
At a mellow surf spot near the campus of the University of California, Santa Barbara, Paige Hoel smiled to herself; as an oceanographer, she understood why the waves were breaking just so. Between 2014 and 2024, she had earned her undergraduate degree, a master’s and a doctorate. But her passion for the field did not come without financial strain.
“I spent my 20s pursuing this,” says Hoel, who adds that her father lived on a “shoestring budget” during his own time as a PhD student. “I knew I had to hustle to support myself.”
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PhD candidates do not just commit to long hours and intense research, but also to the financial uncertainty that comes with low stipends relative to high costs of living, especially in urban locations. As a PhD student at the University of California, Hoel earned US$30,000–36,000 per year, along with the benefits of waived tuition, health care and a gym membership. The financial strain can persist into early-career training and result in a limited capacity to save and invest in the future.
“This is the time to plan and build a foundation for yourself, one that sticks,” says Brian Skinner, a financial planner at Skinner Wealth Strategies in Milford, Connecticut. Specialists such as Skinner say that completing a PhD and feeling financially stable are not mutually exclusive. Here are five personal financial strategies for before, during and after a PhD programme that students and financial advisers say could help individuals to feel more secure.
Create and stick to a budget
Financial management begins with identifying your goals, then creating a budget that reflects them. Generally, a well-planned budget is a blueprint for how to control costs and make informed decisions each month as income arrives and expenses flow out.
First, identify all regular costs, such as rent, food, debt and savings. The rule of thumb, according to financial advisers, is to allocate up to 50% of your take-home pay to essential expenses, 15–20% to retirement funds and savings accounts, and 5% to an emergency fund. PhD students should focus on covering fixed expenses and building accessible savings, financial planners say.
“You need to break down what your priorities are and then budget to live within your means,” Skinner says.
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