1.
PF SMS iconsPF SMS icons
1
https://learn.extension.org/events/2591
What is Financial Fitness & How is it Measured?

2.
 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

3.
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
3
Sign up for webinar email notifications at www.extension.org/62831

4.
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

5.
+
What is Financial Fitness
& How is it Measured?
Dr. J. Michael Collins,
University of Wisconsin-Madison
5

6.
6

7.
7

8.
+
Time for a poll
8

9.
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
$$

10.
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

11.
Challenge for Field
1. What are the outcomes?
2. What is the return on investment?
…costs and benefits
11

12.
 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

13.
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 Accessible
Low probability events;
uneven reporting.
13

14.
Three Legs of Financial Fitness
 Financial Literacy
 Knowing What to Do
 Financial Capability
 Skills to Do
 Financial Inclusion
 Opportunity to Do
14

15.
 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

16.
16

17.
Financial Capability Scale I
17

18.
Financial Capability Scale II
18

19.
19

20.
20

21.
21

22.
Financial Capability Scale Components: Change Over Time
22

23.
+
Time for a poll
23

24.
Financial Wellbeing
24

25.
Social
and
Economic
Environment
Personality
& attitudes
Decision context
Knowledge
& skills
Financial
well-being
Behavior
&
Actions
25

26.
Financial Well-being I
26

27.
Financial Well-being II
27

28.
Scoring the Financial
Well-being Scale…
Using the Look Up Table
28

29.
29

30.
 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

31.
Illustrative Studies…
 Retirement Savings Education: Quasi-experiment with employees:
increased retirement deferrals by 47 percent ($30 / month)
31

32.
High School Financial Education:
90-Day Loan Delinquency Rate by Graduation Year
Before & After State Mandate
32

33.
33
33

34.
+
Time for a poll
34

35.
What’s Next?
1. Build Measurement Capacity
 Training & education
 Developing systems
1. Deploy Technology
 Software, web-based services
1. Practice: Fidelity, Consistency & Quality
 Need “rules” (and enforcement)
 Context/process, wording, mode, timing
1. Standardization & Aggregation
 Across time, program and geography
35

36.
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-we
 How could you use either scale in your own work with clients?

37.
37

38.
38
Resources
 Financial Capability Scale Brief
 http://fyi.uwex.edu/financialcoaching/files/2013/07/CFS_Research_Outco
 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/

39.
What is one significant thing
you learned today?
39

40.
Connect with MFLN Personal Finance Online!
MFLN Personal Finance
MFLN Personal Finance @MFLNPF
PF SMS iconsPF SMS icons
40

41.
MFLN Intro
41
We invite MFLN Service Provider Partners
to our private LinkedIn Group!
https://www.linkedin.com/groups/8409844
DoD
Branch Services
Reserve
Guard
Cooperative
Extension

42.
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_8eJaDnO5RxbuNyl
Must 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

43.
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

44.
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!

45.
www.extension.org/62581
45