While many programs aim to increase the financial well-being of low income workers, “financial well-being” has never been uniformly defined, nor is there a standard way to measure it. This report from the Consumer Financial Protection Bureau provides a conceptual framework for defining and measuring success in financial education by delivering a proposed definition of financial well-being, and insight into the factors that contribute to it. The four key elements of financial well-being include the following: control over day to day finances; capacity to absorb a financial shock; financial freedom to make choices to enjoy life; and ability to meet financial goals. This framework is grounded in the existing literature, expert opinion, and the experiences and voice of consumers garnered through in-depth, one-on-one interviews with working-age and older consumers.
EITC Funders
