The maximum score for this component is 25 points and there are four major questions that are used to derive this value: How does the ‘savings’ component of the score work? We also ask if the respondent has defaulted on debt, declared bankruptcy or had a County Court Judgement (CCJ) in the past 6 years.Ħ. We ask if they completely pay off everything owed on credit cards. On the quantitative side, questions are asked about what kind of debt the household currently has, including but not limited to credit card debt, student loans and payday loans.
On the qualitative side, the survey asks for the respondent’s feeling of the overall debt situation of the household. The debt score section collects information on the household’s debt situation. Have they had a court judgement or declared bankruptcy in the last 6 years? (max: 5 points).What is their debt to income ratio? (max: 5 points).What is their payment frequency? (max: 5 points).What kind of debt do they have? (max: 5 points).How does the user feel about their debt? (max: 5 points).The maximum score for this component is 25 points and there are 5 components that are evaluated to derive this value: How does the ‘debt’ component of the score work? What is the user’s budget-to-income ratio? (max: 15 points)ĥ.Does the user regularly outspend their input income? (max: 5 points).How does the user feel about their finances? (max: 5 points).There are three major questions that are used to derive this value On the quantitative side, we collect their monthly spending amount, and monthly debt amount. On the qualitative side, we ask for the respondent’s self-assessment of spending, and their overall feeling of the budgeting situation of the household. The budget score section focuses on the household’s day-to-day cash flow and short-term saving goals. How does the ‘budget’ component of the score work?
This section is not used in the production of the score.Ĥ. The demographic section gathers personal information to enable the financial wellness assessment and provide the user with relevant hints and tips for their personal circumstances. How is the user’s demographic information used? The assessment considers both quantitative financial behaviour measures (factual statements) which is weighted at 70% and qualitative measures (self-appraisal of one’s situation) which is weighted at 30%.ģ. The score ranges from 1 to 25, where 1 represents financial distress and 25 indicates a maximum level of financial wellness for each of the four areas.
Last, but not least, financial protection seeks to provide a safety net though the use of a savings cushion and insurance. Debt utilisation and savings are contributing factors to one’s financial wellness. Budgeting deals with day to day financial stability. These four areas were selected for their contribution to overall financial wellness. What does the Financial Wellness Score assess?įidelity’s Financial Wellness Score assesses certain quantitative and qualitative indicators of a person’s financial situation in four key areas: