Financial Well-Being for Residents

CHW adopted the Consumer Financial Protection Bureau’s (CFPB) definition of Financial Well-Being - “The ability to meet all financial needs, today and over time; to feel secure in the financial future; to absorb a financial shock, and to have the financial freedom to make choices to enjoy life.”

• Control over finances pertains to the ability to pay bills on time and not having unmanageable debt.
• The capacity to absorb a financial shock refers to having a cushion for unexpected expenses and emergencies. Factors that support this are having a savings account, health insurance, good credit, and being able to rely on friends or family for financial assistance.
• On Track to meet financial goals – people feel that they are on track to reach their financial goals with indicators such as paying off student loans within a certain number of years or saving a specific amount towards retirement.
• Choices that allow one to enjoy life are the ability to take a vacation, enjoy a meal out now and then, and return to school to pursue an advanced degree, or working less and spending more time with family

For more information on the CFPB’s definition of financial well-being, how it was created, and what may influence it, see “Financial Well-Being: The Goal of Financial Education” available at http://www.consumerfinance.gov/reports/financial-well-being/.