WASHINGTON (12/15/15)--Financial educators and others who work on building financial capability can help consumers measure their financial well-being with a new tool released by the Consumer Financial Protection Bureau (CFPB).
Billed as a “first-of-its-kind” tool by the bureau, it uses the same measurements used by financial professionals to accurately and consistently quantify financial well-being.
The new tool is comprised of 10 questions that financial educators can use when working with clients to measure their financial security and overall sense of financial well-being. The questions that make up the scale are built around the four elements of financial well-being that were published in a January 2015 CFPB report.
The four elements are: financial security in the present; financial security in the future; present financial freedom of choice; and future financial freedom of choice.
According to the CFPB, financial educators can use the scale in a variety of ways: