PF SMS iconsPF SMS icons

1

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 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-save/

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

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

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

+

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 resources they have to reach a higher level of well-being?

9

$$

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

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 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

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 AccessibleLow probability events;

uneven reporting.13

Three Legs of Financial Fitness

Financial Literacy Knowing What to Do

Financial Capability Skills to Do

Financial Inclusion Opportunity to Do

14

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

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&

Actions

25

Financial Well-being I

26

Financial Well-being II

27

Scoring the Financial Well-being Scale…

Using the Look Up Table

28

29

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

Illustrative Studies… Retirement Savings Education: Quasi-experiment with employees:

increased retirement deferrals by 47 percent ($30 / month)

31

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

2. Deploy Technology Software, web-based services

3. Practice: Fidelity, Consistency & Quality Need “rules” (and enforcement) Context/process, wording, mode, timing

4. Standardization & Aggregation Across time, program and geography

35

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-well-being-scale/

How could you use either scale in your own work with clients?

37

38

Resources

Financial Capability Scale Brief http://fyi.uwex.edu/financialcoaching/files/2013/07/CFS_Research_

Outcomes_Brief-Coaching-MetricsJMC1.pdf

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/

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/8409844

DoDBranch Services

ReserveGuard

Cooperative Extension

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_8eJaDnO5RxbuNylMust 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

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

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!

www.extension.org/62581

45