Defining financial health, resilience and wellness

Within the overall construct of financial well-being 

Financial health is about your ability to balance your financial needs of today with those of tomorrow, and get through times of financial hardship. 

Through our FHI studies and Index, here we measure multiple consumer and financial behaviours, such as the extent to which households plan ahead for upcoming expenses, save towards longer term goals, or manage debt. These span the spectrum of daily financial management, debt/ credit management; saving planning and investing, and protection. 

Financial resilience speaks to your ability to get through financial hardship, financial stressors or ‘shocks’ as a result of unplanned life events.      

Here we measure different aspects that impact households, including their confidence in ability to weather financial stressors and shocks as a result of unplanned life events; access to social capital in times of financial hardship, or available liquid savings buffers that can help people make ends meet if needed.    

Financial wellness is about your emotional peace of mind in terms of your financial situation and current and future financial obligations. The opposite is financial stress.  

Here we measure many different sentiments around individuals’ and households’ financial situation, financial and debt stressors.   

These inter-related constructs together are part of over-arching construct of consumer financial well-being.  Please contact us for more information about our framework, developed over many years and validated with the input of many consumers, experts, academics, financial professionals and partners. 

Additional controllable and non-controllable factors that impact Canadians’ financial well-being that we track through the Financial Health Index studies relate to, for example, the cost of living, housing affordability and other factors; challenged access to relevant financial products, services, advice or support; levels of social capital; levels of support from a person’s primary Financial Institution in helping to improve their financial wellness; retirement income and sources; sufficient protection; reliance on and usage of credit for everyday expenses; positive steps taken to improve financial wellness; credit card management; usage of predatory financial services such as payday loans, and more. Please contact us for more information.

 

Personal Well-being

Financial Health

Your ability to balance your financial needs of today with those of tomorrow, and get through times of financial hardship. 

Consumer and financial behaviours, across the spectrum of daily financial management, debt, saving planning and investing and protection. 

Financial Resilience

Your ability to get through financial hardship, financial stressors or ‘shocks’ as a result of unplanned life events.     

Here we measure multiple aspects, including around consumers’ liquid savings buffers, social capital and other enablers that impact their individual and household financial resilience – or conversely, cause vulnerability and hardship.

Financial Wellness

Your emotional peace of mind in terms of your financial situation and current and future financial obligations. The opposite is financial stress.

Here we measure many aspects of financial wellness, financial stress and debt stress.

We also measure the extent to which Financial Institutions help to improve their customers’  financial wellness over time and resultant business benefits: such as brand loyalty and banking share of wallet.

Why Financial Health & Resilience Matters  

Financial health and resilience is vital to overall emotional and physical wellbeing, family stability and people achieving their life goals – not just for today but for generations to come. Financial stress, financial vulnerability and hardship have many negative implications for individuals, families, small businesses and communities, impacting growth and economic prosperity.  

 Please check out our white papers for more info, based on our longitudinal Financial Health Index studies, qualitative and quantitative financial health research and measurement work – an on-going journey.  

Government, Financial institutions and Businesses are being asked to do more to support peoples’ financial well-being, in a way that puts people’s best interests, addresses real needs and pain points, and drives impact.  

In business and financial services, financial health is a new avenue for customer-focused innovation and good for the financial services industry, while cementing and deepening customer relationships and loyalty. In return, financially healthy and resilient customers offer new opportunities for engagement, loyalty, enhanced risk and credit management, enhanced customer relationship management and long-term revenue streams for organizations.

Protecting and supporting consumers in relevant ways with their daily financial management, borrowing, saving, planning and investing and protection also helps them to address gaps and blind-spots – and build their financial health and resilience over the medium to longer-term throughout their lives. 

Is your organization ready to embark on your financial health innovation journey for your customers, employees and communities?  We can help