Updated: 1/13/2023
Help us keep the toolkit updated by suggesting new frameworks. We would like to thank UVA SEED for their contributions to this toolkit.
| Framework | Summary | Region | Pros | Cons | Source |
|---|---|---|---|---|---|
| Financial Health Network | Measures ability to save, borrow, and spend. Focuses on planning ahead and spending habits less than income and financial conditions. | United States | Considers spending habits. | Measures pathways to outcomes, not outcomes themselves. | https://finhealthnetwork.org/tools/financial-health-score/ |
| Consumer Protection Financial Bureau (CPFB) | 100-point scale. Self-reported objective financial measurements. Subjective feelings of financial health. | United States and Europe | Considers confidence and feelings of financial efficacy. | Wide disparities between financial feelings and reality. | https://files.consumerfinance.gov/f/documents/201709_cfpb_financial-well-being-in-America.pdf |
| Gallup Method | Subjective measure of financial control and objective measure of financial security. Response to 10 binary questions. Investigates correlation between control and security. | United States | Correlation between perceived low financial control and financial health. | Not globally applicable. No correlation between income level and financial control. | https://news.gallup.com/reports/233399/gallup-global-financial-health-study-2018.aspx |
| Global Compact on Refugees (GCR): Indicator | Questions work around big, aggregated data (ex. “percentage of target population living below the national poverty line”) | Global | Gives a local scale and context to the issue. Simple and effective measure of basic financial independence. | Big data drives accuracy. Collection can be hindered by legal/government disputes. | https://www.unhcr.org/global-compact-refugees-indicator-report/wp-content/uploads/sites/143/2021/11/2021_GCR-Indicator-Report_spread_web.pdf#_ga=2.223815835.1062679072.1673634338-2069664263.1673634338 |
| Innovations for Poverty Action (IPA) | Generalized framework predicated on four objectives: (1) easing pressure on host countries, (2) enhancing refugee self-reliance, (3) expanding access to third country solutions, and (4) supporting conditions in countries of origin for return in safety and dignity. | Global | Excellent for demonstration of causes of financial issues rather than only results. Comparable globally. | Data-centric and invasive. At times inapplicable due to its breadth. | https://www.poverty-action.org/sites/default/files/publications/IPA Financial Health - Full Report Final.pdf |
| Commonwealth Bank of Australia (CBA) and Melbourne Institute (MI) | Two-part survey containing subjective financial health feelings and transactional data. Part one has 10 questions about status, security, wellbeing. Part two uses customer transaction data. | Australia | Subjective measures complemented with objective numbers. | Difficult to expand beyond Australia. Transactional data is hard to come by. | https://fbe.unimelb.edu.au/__data/assets/pdf_file/0010/2839429/CBA_MI_Tech_Report_No_1.pdf |
| Financial Sector Deepening | Uses nine indicators to judge person’s ability to manage shocks, invest in future. Uses binary scale. Deemed financially healthy if they choose positively on 6/9 indicators. | Kenya | Uses pre-established financial tools. | Binary indicator is not applicable across all contexts. | https://www.fsdkenya.org/financial-health/financial-health/ |
| Financial well-being. Elaine Kempson et al. / U.K., Canada, Norway, Ireland, Australia & New Zealand | |||||
| (Government-University | |||||
| partnership) | A measure of financial capability and distress that is derived from 11 survey questions. These questions are grouped into "components" of financial health using statistical methods, and a score out of 100 is calculated for each component and for the overall financial wellbeing of the respondent. This index is one example of a series of studies conducted in various countries. | / U.K., Canada, Norway, Ireland, Australia & New Zealand | https://www.ccpc.ie/business/wp-content/uploads/sites/3/2018/12/Financial-Well-being-in-Ireland-Final-December-2018.pdf | ||
| BFA Global | A tool that allows individuals to evaluate their own financial well-being by answering 12 simple questions. These questions can be answered on their own or with the help of a financial institution representative. The answers are then converted into a score from 0 to 10, which gives a snapshot of the individual's financial health. The index reflects four aspects of financial health: day-to-day, opportunities, resilience, and agency. | Mexico | https://bfaglobal.com/finnsalud/insights/financial-health-in-mexico-a-new-tool-for-measurement/ |
| Survey Program | Sample Indicator |
|---|---|
| Global Findex, World Bank | Proportion of adults who have the ability to obtain 1/20th of their Gross National Income per capita for an emergency situation within a timeframe of 30 days. |
| Survey of Household Economics and Decision Making (SHED), Federal Reserve Board (U.S.) | Proportion of adults who have the means to pay for a hypothetical expense of $400 using cash or its equivalent. |
| Wealth and Assets Survey, Office for National Statistics (U.K.) | Percentage of families that possess enough officially recognized financial resources to endure a quarter-long decrease in income from employment within the household |
| How’s life? 2020: Measuring well-being report (OECD) | Percentage of individuals who report experiencing difficulty or great difficulty in meeting their financial needs. |
| Wealth distribution database (OECD) | Percentage of people who lack financial stability (do not have enough easily accessible funds to sustain them at the poverty level for over three months) |
References:
https://www.unsgsa.org/sites/default/files/resources-files/2021-11/Measuring-Financial-Health-note-v2.pdf
Delivering Financial Health Globally: A collection of insights, approaches and recommendations