theories_public.type_wellbeing

Financial Well-Being

Also known as: Subjective Financial Well-Being

The CFPB's consumer-driven definition of financial well-being: a state of being 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 enjoyment of life. Derived from qualitative research with U.S. consumers rather than from expert-defined financial literacy: well-being is subjective and behavioral, spanning present security, future security, and financial freedom of choice.

Source:: Consumer Financial Protection Bureau (2015). Financial well-being: The goal of financial education. CFPB (2015). Measuring financial well-being: A guide to using the CFPB Financial Well-Being Scale.

Constructs

Financial Well-Being

A state of being 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 enjoyment of life (CFPB, 2015). The definition is consumer-driven — derived from qualitative research with consumers rather than from expert-set literacy standards — and spans present security, future security, and financial freedom of choice. High scores describe a life with absorbable surprises and a provisioned future; low scores describe margins thin enough that money decides things for the person.

Instruments

CFPB Financial Well-Being ScaleConsumer Financial Protection Bureau2015

Tests built on this theory

Financial Well-Being Scale (CFPB)

The U.S. government's 10-item test of how your finances actually feel — scored 0-100 against a national benchmark.

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