Defining Financial Wellbeing: A New Way of Thinking

What comes to mind when you think about your financial wellbeing?  It may be paying bills on time, understanding your credit report, keeping financial accounts in balance, managing investments, or a long list of other financial tasks.  Although these items are important aspects of our financial lives, recent research has found that other key factors may be critical to our financial well-being

The Consumer Financial Protection Bureau talked to consumers across the country to learn what financial wellbeing means to them.  Based on those interviews they found that four elements were mentioned:

• Feeling in control

• Capacity to absorb a financial shock

• On track to meet goals

• Flexibility to make choices

Financial wellbeing is not based on income level.  It’s more personal and based on satisfaction with your financial situation. Based on their research the CFPB developed a definition of wellbeing as having financial security and financial freedom of choice, in the present and in the future.

To measure your financial wellbeing, link to the wellbeing tool. Answer ten questions to get your score. You will not share any personal financial data. Steps to improve financial wellbeing are included.

Guest Blogger Phyllis Zalenski Family Finance Field Specialist…Providing Financial Management education for individuals and families including spending plans, budgeting for your needs, consumer decision-making, dealing with credit and debt, and planning for your future – savings, insurance, and retirement.

Brenda Schmitt

Brenda Schmitt

A Iowa State University Extension and Outreach Family Finance Field Specialist helping North Central Iowans make the most of their money.

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