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https://learn.extension.org/events/2591
What is Financial Fitness & How is it Measured?
 Make small deposits daily July 1-30 to save $100 in just 30 days!
 Share your savings goals, successes and motivations ...
Connecting military family service providers
and Cooperative Extension professionals to research
and to each other through...
Dr. J. Michael Collins
•Faculty Director at the Center for Financial Security at
the University of Wisconsin.
•Associate P...
+
What is Financial Fitness
& How is it Measured?
Dr. J. Michael Collins,
University of Wisconsin-Madison
5
6
7
+
Time for a poll
8
Common Goal
 Help people be “better off”
 Independence
 Control
 Stability
 How can people better manage the
resource...
Ideal Outcomes
 Develop stronger financial skills
 Empower to adapt to new economic contexts
 Increased self-efficacy a...
Challenge for Field
1. What are the outcomes?
2. What is the return on investment?
…costs and benefits
11
 Measures we use all the time
 Weight or blood pressure
 Weight for monitoring heart function
 Weight for competing in...
Pros Cons
Self Reported
Survey
Can be collected in
service delivery
Self-report bias; lack of
cooperation, especially for
...
Three Legs of Financial Fitness
 Financial Literacy
 Knowing What to Do
 Financial Capability
 Skills to Do
 Financia...
 Standardized measures?
 Health care, public health, nutrition
 Ex. Outcomes per health care expenditure
 Financial pr...
16
Financial Capability Scale I
17
Financial Capability Scale II
18
19
20
21
Financial Capability Scale Components: Change Over Time
22
+
Time for a poll
23
Financial Wellbeing
24
Social
and
Economic
Environment
Personality
& attitudes
Decision context
Knowledge
& skills
Financial
well-being
Behavior
...
Financial Well-being I
26
Financial Well-being II
27
Scoring the Financial
Well-being Scale…
Using the Look Up Table
28
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 No measure is perfect
 Some measures are better than none
 Don’t let the perfect be the enemy of the good.
 Balancing...
Illustrative Studies…
 Retirement Savings Education: Quasi-experiment with employees:
increased retirement deferrals by 4...
High School Financial Education:
90-Day Loan Delinquency Rate by Graduation Year
Before & After State Mandate
32
33
33
+
Time for a poll
34
What’s Next?
1. Build Measurement Capacity
 Training & education
 Developing systems
1. Deploy Technology
 Software, we...
Homework
36
 Try the Financial Capability Scale. What is your score (0-8)?
http://fyi.uwex.edu/financialcoaching/measures...
37
38
Resources
 Financial Capability Scale Brief
 http://fyi.uwex.edu/financialcoaching/files/2013/07/CFS_Research_Outco
...
What is one significant thing
you learned today?
39
Connect with MFLN Personal Finance Online!
MFLN Personal Finance
MFLN Personal Finance @MFLNPF
PF SMS iconsPF SMS icons
40
MFLN Intro
41
We invite MFLN Service Provider Partners
to our private LinkedIn Group!
https://www.linkedin.com/groups/8409...
Evaluation and
Continuing Education Credits/Certificate
42
MFLN Personal Finance is offering 1.5 credits for AFC-
credenti...
Personal Finance Upcoming Events
43
VLE Session 2: Positive Personality Traits of Financially
Fit People
• Date: Wednesday...
VLE Wrap Up Discussion
44
• Thursday, June 16, 2016 from 1-1:30pm Eastern
• https://learn.extension.org/events/2594
Join u...
www.extension.org/62581
45
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What is Financial Fitness & How is it Measured?

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Financial fitness is a goal for many people, but achieving fitness in terms of money management may require a combination of financial education, coaching, and financial access. After reviewing the components of financial fitness, this session will provide an overview of measures of financial capability and well-being, as well as practical applications of program measures in the field. The session will include discussion, interactive polling and Q&A.
To register, join & for resources: https://learn.extension.org/events/2591/
Speaker: Dr. J. Michael Collins

Published in: Education
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What is Financial Fitness & How is it Measured?

  1. 1. PF SMS iconsPF SMS icons 1 https://learn.extension.org/events/2591 What is Financial Fitness & How is it Measured?
  2. 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. 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. 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. 5. + What is Financial Fitness & How is it Measured? Dr. J. Michael Collins, University of Wisconsin-Madison 5
  6. 6. 6
  7. 7. 7
  8. 8. + Time for a poll 8
  9. 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. 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. 11. Challenge for Field 1. What are the outcomes? 2. What is the return on investment? …costs and benefits 11
  12. 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. 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. 14. Three Legs of Financial Fitness  Financial Literacy  Knowing What to Do  Financial Capability  Skills to Do  Financial Inclusion  Opportunity to Do 14
  15. 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. 16
  17. 17. Financial Capability Scale I 17
  18. 18. Financial Capability Scale II 18
  19. 19. 19
  20. 20. 20
  21. 21. 21
  22. 22. Financial Capability Scale Components: Change Over Time 22
  23. 23. + Time for a poll 23
  24. 24. Financial Wellbeing 24
  25. 25. Social and Economic Environment Personality & attitudes Decision context Knowledge & skills Financial well-being Behavior & Actions 25
  26. 26. Financial Well-being I 26
  27. 27. Financial Well-being II 27
  28. 28. Scoring the Financial Well-being Scale… Using the Look Up Table 28
  29. 29. 29
  30. 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. 31. Illustrative Studies…  Retirement Savings Education: Quasi-experiment with employees: increased retirement deferrals by 47 percent ($30 / month) 31
  32. 32. High School Financial Education: 90-Day Loan Delinquency Rate by Graduation Year Before & After State Mandate 32
  33. 33. 33 33
  34. 34. + Time for a poll 34
  35. 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. 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. 37
  38. 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. 39. What is one significant thing you learned today? 39
  40. 40. Connect with MFLN Personal Finance Online! MFLN Personal Finance MFLN Personal Finance @MFLNPF PF SMS iconsPF SMS icons 40
  41. 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. 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. 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. 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. 45. www.extension.org/62581 45

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