Explore Financial Well-being Findings | Consumer Financial Protection Bureau (2024)

FAQs

How does the Consumer Financial Protection Bureau define financial well-being? ›

Financial well-being describes a condition wherein a person can fully meet current and ongoing financial obligations, can feel secure in their financial future, and is able to make choices that allow them to enjoy life.

How do I interpret the score? CFPB Financial Well-Being Scale score is a number between 0 and 100. A higher score indicates a higher level of measured financial well-being, but there is not a specific cut-off for a “good” or “bad” financial well-being score.

The Consumer Financial Protection Bureau (CFPB) helps consumers by providing educational materials and accepting complaints. It supervises banks, lenders, and large non-bank entities, such as credit reporting agencies and debt collection companies.

The financial well-being score provides a common metric that allows a comparison of financial well-being across people and over time. The financial well-being scale is a free tool to help you measure the financial well-being of people you serve.

The CFPB was created under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). The purpose of the CFPB is to promote fairness and transparency for mortgages, credit cards, and other consumer financial products and services.

It's about making the most of your money from day to day, dealing with the unexpected, and being on track for a healthy financial future. In short: financially resilient, confident and empowered. People who experience financial wellbeing are less stressed about money.

(2020, p. 1596) found that FWB has three dimensions: meeting expenses and having some money left over, being in control, and feeling financially secure.

Financial well-being is measured objectively using three financial ratios including the liquidity ratio, the debt-to-asset ratio, and the investment ratio.

defined and assessed financial well-being as the combination of the following five dimensions: inner well-being (general satisfaction and happiness), relative assessment (perceived comparison with society and with oneself), time (comparison of the individual's actual financial situation with the past and with ...

Sometimes the CFPB will send a warning letter to advise recipients that certain actions may violate federal consumer financial law. These are not accusations of wrongdoing. Instead, they are meant to help recipients review certain practices and ensure that they comply with federal law.

Why would I get a check from the Consumer Financial Protection Bureau? ›

Here's how to tell if it's legit. If you have received a check from the CFPB, it is because we have taken an enforcement action against a person or company for violating a consumer financial protection law, and you are eligible for compensation as a result of this violation.

Consistent with applicable law, we securely share complaints with other state and federal agencies to, among other things, facilitate: supervision activities, enforcement activities, and. monitor the market for consumer financial products and services.

By age 35, aim to save one to one-and-a-half times your current salary for retirement. By age 50, that goal is three-and-a-half to six times your salary. By age 60, your retirement savings goal may be six to 11-times your salary. Ranges increase with age to account for a wide variety of incomes and situations.

Financial wellness is your ability to live within your means and manage your money in a way that gives you peace of mind. It includes balancing your income and expenses, staying out of debt, saving for the future, and understanding your emotions as they relate to money.

The financial well-being indicator in the Quality of Life Framework is based on a household's own assessment of its ability to meet its financial needs in terms of transportation, housing, food, clothing, and other necessary expenses.

The CFPB was created to provide a single point of accountability for enforcing federal consumer financial laws and protecting consumers in the financial marketplace. Before, that responsibility was divided among several agencies. Today, it's our primary focus.

The FWBI is a useful measure of how people are faring in their financial lives in Australia over time. This update examines how financial wellbeing changed in the December quarter of 2023 and year-on-year, comparing the December 2023 results with those of September 2023 and December 2022.