CFPB issues report on financial well-being scale

This story appeared in Bank Digest.                                  

Noting that there is a growing consensus that the ultimate goal of financial education is to support individual financial well-being, the Consumer Financial Protection Bureau has issued a technical report that describes the development of a scale to measure individual financial well-being. According to the report, the CFPB Financial Well-Being Scale is a consumer-driven measure based on a definition of financial well-being that draws on insights from both consumers and financial practitioners.                                   

The report is designed to serve as a resource for researchers and others who seek the technical details related to the development of the scale and the scoring procedures. It builds on the results of a 2015 CFPB report that provided the first consumer-driven definition of financial well-being for the financial education field, the bureau said.