Financially healthy: All-star status
What does this mean: If your score is between 80-100, then you are in the “Financially Healthy” category.
Congratulations! You likely have sufficient savings, a good credit score, and spend less than you make.
Steps to improve
Keep doing what you’re doing. You’ve been diligent about your financial health, and it shows.
If you want to confirm all the reasons why you’re on the right track, then check out the advice for the “Vulnerable” and “Coping” scores. Make sure you understand what you’ve done well, so you can continue to do it in the future.
Here’s how to make sense of your test results
Just like you visit your doctor for regular checkups and recommendations for healthier living, your Financial Health Assessment can provide the same, but for your financial situation.
Like your physical health, achieving financial wellness is a long-term commitment rather than something that happens overnight. If you’re setting big financial goals, then small shifts in behavior and commitment over a long period can help you get there.
How the Financial Health Assessment Works
The Financial Health Assessment provides a simple score to reflect the state of your finances. It considers factors such as how much you have in savings and retirement plans, and your income versus spending.
Here’s the good news: You’ve already done the most challenging part of any process — getting started! Knowing where you stand is a great first step to improving financial health. And if you scored lower than where you want to be, then rest assured there isn’t a score so low that you can’t improve dramatically.
Now, let’s discuss what your score means and tips to improve or keep good behaviors going.
Breaking Down Your Score
To determine your score, we ask you the following eight questions:
- Do you spend less than your income?
- Do you pay bills on time and in full?
- Are your living expenses sufficient?
- Do you have long-term savings?
- Is your debt load sustainable?
- Do you have a good credit score?
- Are you covered by the appropriate insurance?
- Do you plan ahead for expenses?
Based on your answers, you’ll receive scores ranging from 0 to 100. Then, we take the average of your scores from each question to determine your final score. That number gives us a solid impression of your overall financial health, which you can use to create a plan of action.
For our assessment, your score can fall into one of three categories:
Financially Vulnerable, Financially Coping, or Financially Healthy.
No matter what your score was
Now that you know where you stand, you can take small steps to start or continue on your path to financial wellness.
Financial health comes about when your daily financial systems allow you to be resilient and pursue opportunities over time.