Measure and Score Financial Well-being | Consumer Financial Protection Bureau (2024)

FAQs

How do you interpret the CFPB financial well-being scale? ›

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.

Great job! Financial Health scores between 81 and 90 are well above average. A score in this range indicates that you have put in the time and effort to create a good financial foundation.

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.

The Observed Financial Wellbeing Scale

This scale uses customers' existing banking data to show any payment issues like dishonoured repayments. It helps identify spending habits, if customers have a savings buffer and how much they could access in an emergency.

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

The average American net worth is $1,063,700, as of 2022. Net worth averages increase with age from $183,500 for those 35 and under to $1,794,600 for those 65 to 74. Net worth, however, tends to drop for those 75 and older.

Those will become part of your budget. The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings. The savings category also includes money you will need to realize your future goals.

For over 13 years, the Financial Health Network has worked to make financial services a force for good in the lives of millions by researching, identifying, investing in, and promoting products and services that can help improve consumer financial health. Your support and partnership is critical to this work.

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.

We protect consumers from unfair, deceptive, or abusive practices and take action against companies that break the law. We arm people with the information, steps, and tools that they need to make smart financial decisions.

How do I know if I am financially secure? ›

Financial stability can be defined differently for each person, but there are some common indicators of being financially secure. Signs of financial stability include following a budget, living below your means, saving money consistently, prioritizing debt repayment, and paying bills on time.

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 raw scores are transformed to a score from 0 to 100, with lower scores indicating worse well-being. A score of ≤50 indicates poor wellbeing and suggests further investigation into possible symptoms of depression. A score of 28 or below is indicative of depression.

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 WB-NRSs-CV consists of five items on a 10-point numerical rating scale, ranging from 1 (absolute distress) to 10 (complete well-being). Each item on the scale measures a specific domain: physical, mental, social, spiritual, and general well-being. A higher score relates to a higher level of well-being (22).

Credit rating agencies examine a company's financial statements and calculate financial ratios to assess its financial position and ability to repay creditors in the long term. Supplementary risks. These risks can include the company's financial policies, governance and structure.