what is financial fitness & how is it measured?
TRANSCRIPT
![Page 1: What is Financial Fitness & How is it Measured?](https://reader031.vdocuments.net/reader031/viewer/2022020301/58779dbb1a28ab826e8b4763/html5/thumbnails/1.jpg)
PF SMS iconsPF SMS icons
1
https://learn.extension.org/events/2591
What is Financial Fitness & How is it Measured?
![Page 2: What is Financial Fitness & How is it Measured?](https://reader031.vdocuments.net/reader031/viewer/2022020301/58779dbb1a28ab826e8b4763/html5/thumbnails/2.jpg)
Make small deposits daily July 1-30 to save $100 in just 30 days! Share your savings goals, successes and motivations with us by
tweeting and posting to Facebook with #MFLNPF Recruit colleagues and clients to participate in the challenge! More info:
https://blogs.extension.org/militaryfamilies/2016/06/14/challenge-yourself-to-save/
![Page 3: What is Financial Fitness & How is it Measured?](https://reader031.vdocuments.net/reader031/viewer/2022020301/58779dbb1a28ab826e8b4763/html5/thumbnails/3.jpg)
Connecting military family service providers and Cooperative Extension professionals to research
and to each other through engaging online learning opportunities
www.extension.org/militaryfamilies
MFLN Intro
3Sign up for webinar email notifications at www.extension.org/62831
![Page 4: What is Financial Fitness & How is it Measured?](https://reader031.vdocuments.net/reader031/viewer/2022020301/58779dbb1a28ab826e8b4763/html5/thumbnails/4.jpg)
Dr. J. Michael Collins
•Faculty Director at the Center for Financial Security at the University of Wisconsin.•Associate Professor at the La Follete School of Public Affairs and at the School of Human Ecology.•Family Economics Specialist for UW-Extension and Cooperative Extension •Collins studies consumer decision-making in the financial marketplace, including the role of public policy in influencing credit, savings and investment choices.
Today’s Presenter
4
![Page 5: What is Financial Fitness & How is it Measured?](https://reader031.vdocuments.net/reader031/viewer/2022020301/58779dbb1a28ab826e8b4763/html5/thumbnails/5.jpg)
+
What is Financial Fitness & How is it Measured?Dr. J. Michael Collins, University of Wisconsin-Madison
5
![Page 6: What is Financial Fitness & How is it Measured?](https://reader031.vdocuments.net/reader031/viewer/2022020301/58779dbb1a28ab826e8b4763/html5/thumbnails/6.jpg)
6
![Page 7: What is Financial Fitness & How is it Measured?](https://reader031.vdocuments.net/reader031/viewer/2022020301/58779dbb1a28ab826e8b4763/html5/thumbnails/7.jpg)
7
![Page 8: What is Financial Fitness & How is it Measured?](https://reader031.vdocuments.net/reader031/viewer/2022020301/58779dbb1a28ab826e8b4763/html5/thumbnails/8.jpg)
+Time for a poll
8
![Page 9: What is Financial Fitness & How is it Measured?](https://reader031.vdocuments.net/reader031/viewer/2022020301/58779dbb1a28ab826e8b4763/html5/thumbnails/9.jpg)
Common Goal
Help people be “better off” Independence Control Stability
How can people better manage the resources they have to reach a higher level of well-being?
9
$$
![Page 10: What is Financial Fitness & How is it Measured?](https://reader031.vdocuments.net/reader031/viewer/2022020301/58779dbb1a28ab826e8b4763/html5/thumbnails/10.jpg)
Ideal Outcomes
Develop stronger financial skills Empower to adapt to new economic contexts
Increased self-efficacy and self-control More focused attention and reduced
inattention
Support planned, goal-driven financial behaviors
10
![Page 11: What is Financial Fitness & How is it Measured?](https://reader031.vdocuments.net/reader031/viewer/2022020301/58779dbb1a28ab826e8b4763/html5/thumbnails/11.jpg)
Challenge for Field
1. What are the outcomes?
2. What is the return on investment?…costs and benefits
11
![Page 12: What is Financial Fitness & How is it Measured?](https://reader031.vdocuments.net/reader031/viewer/2022020301/58779dbb1a28ab826e8b4763/html5/thumbnails/12.jpg)
Measures we use all the time Weight or blood pressure
Weight for monitoring heart function Weight for competing in diet competition
Tests - use only sometimes MRI or blood draw
Both are important, but have different purposes and uses Likely we are more focused on frequent “all the time” type measures
12
Measuring as a Task
![Page 13: What is Financial Fitness & How is it Measured?](https://reader031.vdocuments.net/reader031/viewer/2022020301/58779dbb1a28ab826e8b4763/html5/thumbnails/13.jpg)
Pros Cons
Self Reported Survey
Can be collected in service delivery
Self-report bias; lack of cooperation, especially for
follow-up—need incentives.
Credit report/score Widely used
Proprietary ; 'thin' files; slow to change.
Account balances
Directly observe behavior; validity
Very “noisy” snapshot; requires client consent
Public records AccessibleLow probability events;
uneven reporting.13
![Page 14: What is Financial Fitness & How is it Measured?](https://reader031.vdocuments.net/reader031/viewer/2022020301/58779dbb1a28ab826e8b4763/html5/thumbnails/14.jpg)
Three Legs of Financial Fitness
Financial Literacy Knowing What to Do
Financial Capability Skills to Do
Financial Inclusion Opportunity to Do
14
![Page 15: What is Financial Fitness & How is it Measured?](https://reader031.vdocuments.net/reader031/viewer/2022020301/58779dbb1a28ab826e8b4763/html5/thumbnails/15.jpg)
Standardized measures? Health care, public health, nutrition
Ex. Outcomes per health care expenditure
Financial programs use wide range of outcomes
Common “yardsticks” will help. Two examples: Financial Capability Scale (behavior) Financial Well-being Scale (subjective)
15
Measuring Outcomes
![Page 16: What is Financial Fitness & How is it Measured?](https://reader031.vdocuments.net/reader031/viewer/2022020301/58779dbb1a28ab826e8b4763/html5/thumbnails/16.jpg)
16
![Page 17: What is Financial Fitness & How is it Measured?](https://reader031.vdocuments.net/reader031/viewer/2022020301/58779dbb1a28ab826e8b4763/html5/thumbnails/17.jpg)
Financial Capability Scale I
17
![Page 18: What is Financial Fitness & How is it Measured?](https://reader031.vdocuments.net/reader031/viewer/2022020301/58779dbb1a28ab826e8b4763/html5/thumbnails/18.jpg)
Financial Capability Scale II
18
![Page 19: What is Financial Fitness & How is it Measured?](https://reader031.vdocuments.net/reader031/viewer/2022020301/58779dbb1a28ab826e8b4763/html5/thumbnails/19.jpg)
19
![Page 20: What is Financial Fitness & How is it Measured?](https://reader031.vdocuments.net/reader031/viewer/2022020301/58779dbb1a28ab826e8b4763/html5/thumbnails/20.jpg)
20
![Page 21: What is Financial Fitness & How is it Measured?](https://reader031.vdocuments.net/reader031/viewer/2022020301/58779dbb1a28ab826e8b4763/html5/thumbnails/21.jpg)
21
![Page 22: What is Financial Fitness & How is it Measured?](https://reader031.vdocuments.net/reader031/viewer/2022020301/58779dbb1a28ab826e8b4763/html5/thumbnails/22.jpg)
Financial Capability Scale Components: Change Over Time
22
![Page 23: What is Financial Fitness & How is it Measured?](https://reader031.vdocuments.net/reader031/viewer/2022020301/58779dbb1a28ab826e8b4763/html5/thumbnails/23.jpg)
+Time for a poll
23
![Page 24: What is Financial Fitness & How is it Measured?](https://reader031.vdocuments.net/reader031/viewer/2022020301/58779dbb1a28ab826e8b4763/html5/thumbnails/24.jpg)
Financial Wellbeing
24
![Page 25: What is Financial Fitness & How is it Measured?](https://reader031.vdocuments.net/reader031/viewer/2022020301/58779dbb1a28ab826e8b4763/html5/thumbnails/25.jpg)
Social and
Economic Environment
Personality & attitudes
Decision context
Knowledge & skills
Financial well-being
Behavior&
Actions
25
![Page 26: What is Financial Fitness & How is it Measured?](https://reader031.vdocuments.net/reader031/viewer/2022020301/58779dbb1a28ab826e8b4763/html5/thumbnails/26.jpg)
Financial Well-being I
26
![Page 27: What is Financial Fitness & How is it Measured?](https://reader031.vdocuments.net/reader031/viewer/2022020301/58779dbb1a28ab826e8b4763/html5/thumbnails/27.jpg)
Financial Well-being II
27
![Page 28: What is Financial Fitness & How is it Measured?](https://reader031.vdocuments.net/reader031/viewer/2022020301/58779dbb1a28ab826e8b4763/html5/thumbnails/28.jpg)
Scoring the Financial Well-being Scale…
Using the Look Up Table
28
![Page 29: What is Financial Fitness & How is it Measured?](https://reader031.vdocuments.net/reader031/viewer/2022020301/58779dbb1a28ab826e8b4763/html5/thumbnails/29.jpg)
29
![Page 30: What is Financial Fitness & How is it Measured?](https://reader031.vdocuments.net/reader031/viewer/2022020301/58779dbb1a28ab826e8b4763/html5/thumbnails/30.jpg)
No measure is perfect Some measures are better than none Don’t let the perfect be the enemy of the good.
Balancing strategies for collecting data Self reported data AND Administrative data
Not about ‘Winners’ and ‘Losers’ Measures are complements not substitutes Expect constant improvements and refinements
30
Moving Forward
![Page 31: What is Financial Fitness & How is it Measured?](https://reader031.vdocuments.net/reader031/viewer/2022020301/58779dbb1a28ab826e8b4763/html5/thumbnails/31.jpg)
Illustrative Studies… Retirement Savings Education: Quasi-experiment with employees:
increased retirement deferrals by 47 percent ($30 / month)
31
![Page 32: What is Financial Fitness & How is it Measured?](https://reader031.vdocuments.net/reader031/viewer/2022020301/58779dbb1a28ab826e8b4763/html5/thumbnails/32.jpg)
High School Financial Education: 90-Day Loan Delinquency Rate by Graduation Year Before & After State Mandate
32
![Page 33: What is Financial Fitness & How is it Measured?](https://reader031.vdocuments.net/reader031/viewer/2022020301/58779dbb1a28ab826e8b4763/html5/thumbnails/33.jpg)
33
33
![Page 34: What is Financial Fitness & How is it Measured?](https://reader031.vdocuments.net/reader031/viewer/2022020301/58779dbb1a28ab826e8b4763/html5/thumbnails/34.jpg)
+Time for a poll
34
![Page 35: What is Financial Fitness & How is it Measured?](https://reader031.vdocuments.net/reader031/viewer/2022020301/58779dbb1a28ab826e8b4763/html5/thumbnails/35.jpg)
What’s Next?1. Build Measurement Capacity
Training & education Developing systems
2. Deploy Technology Software, web-based services
3. Practice: Fidelity, Consistency & Quality Need “rules” (and enforcement) Context/process, wording, mode, timing
4. Standardization & Aggregation Across time, program and geography
35
![Page 36: What is Financial Fitness & How is it Measured?](https://reader031.vdocuments.net/reader031/viewer/2022020301/58779dbb1a28ab826e8b4763/html5/thumbnails/36.jpg)
Homework
36
Try the Financial Capability Scale. What is your score (0-8)?http://fyi.uwex.edu/financialcoaching/measures/
Try the Financial Well-being Scale. Calculate your score (with the look-up table)
http://www.consumerfinance.gov/data-research/research-reports/financial-well-being-scale/
How could you use either scale in your own work with clients?
![Page 37: What is Financial Fitness & How is it Measured?](https://reader031.vdocuments.net/reader031/viewer/2022020301/58779dbb1a28ab826e8b4763/html5/thumbnails/37.jpg)
37
![Page 38: What is Financial Fitness & How is it Measured?](https://reader031.vdocuments.net/reader031/viewer/2022020301/58779dbb1a28ab826e8b4763/html5/thumbnails/38.jpg)
38
Resources
Financial Capability Scale Brief http://fyi.uwex.edu/financialcoaching/files/2013/07/CFS_Research_
Outcomes_Brief-Coaching-MetricsJMC1.pdf
Financial Well-being Scale Brief http://www.consumerfinance.gov/financial-well-being
Center for Financial Security https://cfs.wisc.edu/ http://fyi.uwex.edu/financialcoaching/
![Page 39: What is Financial Fitness & How is it Measured?](https://reader031.vdocuments.net/reader031/viewer/2022020301/58779dbb1a28ab826e8b4763/html5/thumbnails/39.jpg)
What is one significant thing you learned today?
39
![Page 40: What is Financial Fitness & How is it Measured?](https://reader031.vdocuments.net/reader031/viewer/2022020301/58779dbb1a28ab826e8b4763/html5/thumbnails/40.jpg)
Connect with MFLN Personal Finance Online!
MFLN Personal Finance
MFLN Personal Finance @MFLNPF
PF SMS iconsPF SMS icons
40
![Page 41: What is Financial Fitness & How is it Measured?](https://reader031.vdocuments.net/reader031/viewer/2022020301/58779dbb1a28ab826e8b4763/html5/thumbnails/41.jpg)
MFLN Intro
41
We invite MFLN Service Provider Partners to our private LinkedIn Group!
https://www.linkedin.com/groups/8409844
DoDBranch Services
ReserveGuard
Cooperative Extension
![Page 42: What is Financial Fitness & How is it Measured?](https://reader031.vdocuments.net/reader031/viewer/2022020301/58779dbb1a28ab826e8b4763/html5/thumbnails/42.jpg)
Evaluation and Continuing Education Credits/Certificate
42
MFLN Personal Finance is offering 1.5 credits for AFC-credentialed participants through AFCPE and CPFC-credentialed participants through FinCert for today’s webinar.
Please complete the post-test for today’s session at: https://vte.co1.qualtrics.com/SE/?SID=SV_8eJaDnO5RxbuNylMust pass post-test with an 80% or higher to receive certificate.
Please complete the evaluation after the last VLE event you attend: https://vte.co1.qualtrics.com/jfe/form/SV_d0aEDkKqPE2lJmR
![Page 43: What is Financial Fitness & How is it Measured?](https://reader031.vdocuments.net/reader031/viewer/2022020301/58779dbb1a28ab826e8b4763/html5/thumbnails/43.jpg)
Personal Finance Upcoming Events
43
VLE Session 2: Positive Personality Traits of Financially Fit People
• Date: Wednesday, June 15, 2016• Time: 11 Eastern• Location: learn.extension.org/events/2592
VLE Session 3: Wealth Building With Savings, Investing & Windfalls
• Date: Thursday, June 16, 2016• Time: 11 Eastern• Location: learn.extension.org/events/2593
![Page 44: What is Financial Fitness & How is it Measured?](https://reader031.vdocuments.net/reader031/viewer/2022020301/58779dbb1a28ab826e8b4763/html5/thumbnails/44.jpg)
VLE Wrap Up Discussion
44
• Thursday, June 16, 2016 from 1-1:30pm Eastern• https://learn.extension.org/events/2594
Join us for an interactive discussion of the resources, tools and quizzes shared during the Virtual Learning Event, as well as your own experience as practitioners.
Connecting with a mic-enabled headset is encouraged!
![Page 45: What is Financial Fitness & How is it Measured?](https://reader031.vdocuments.net/reader031/viewer/2022020301/58779dbb1a28ab826e8b4763/html5/thumbnails/45.jpg)
www.extension.org/62581
45