1、September 2017 Financial well-being in America 1 FINANCIAL WELL-BEING IN AMERICA Acknowledgements The research team responsible for developing and conducting the National Financial Well-Being Survey and subsequent data analyses and reports included CFPB staff as well as a team of contractors led by

2、Abt Associates and including University of Wisconsin-Madisons Center for Financial Security and GfK. The research was funded under a competitive award (contract number TPDCFPBPA130014). The following individuals contributed to the design of the survey, subsequent analyses, and the preparation of thi

3、s report: Genevieve Melford, Hector Ortiz, Melissa Knoll, Janneke Ratcliffe and Amy Cesal (CFPB); Mick Couper (CFPB and University of Michigan); J. Michael Collins (CFPB and University of Wisconsin-Madison); Donna DeMarco, Debbie Gruenstein Bocian, Jessica Walker, Benjamin Phillips, Jeffrey Lubell,

4、and Meryl Finkel (Abt Associates); Dee Warmath (University of Wisconsin-Madison Center for Financial Security); and Carly Urban (CFPB and Montana State University). In addition, we are grateful for the insights provided by members of the survey development expert panel: Adele Atkinson (OECD); Martha

5、 J. Deevy (Stanford Center on Longevity); Keith S. Ernst (FDIC); Carol Graham (Brookings Institution); Joanne W. Hsu (Federal Reserve Board); Clinton Key (Pew Charitable Trusts); Helen Levy (University of Michigan); Gary Mottola (FINRA Foundation); and Ellen Peters (The Ohio State University). 2 FIN

6、ANCIAL WELL-BEING IN AMERICA Table of contents Acknowledgements . 1 Table of contents. 2 Executive summary . 4 Key findings . 5 Opportunities to advance financial well-being . 9 1. Introduction . 11 1.1 Background . 12 2. The National Financial Well-Being Survey . 16 2.1 Data collection and survey s

7、ample . 16 2.2 Survey measures . 17 3. Financial well-being of U.S. adults . 22 3.1 Interpreting the financial well-being score . 25 3.2 Total U.S. adult population . 27 3.3 Individual characteristics . 30 3.4 Household and family characteristics . 36 3.5 Income and employment characteristics . 40 3

8、.6 Savings and safety nets . 48 3 FINANCIAL WELL-BEING IN AMERICA 3.7 Financial experiences . 54 3.8 Financial behaviors, skills, and attitudes . 61 4. Conclusion . 68 . 71 Appendix A: Summary statistics for all characteristics . 71 . 87 Appendix B: Detailed information about survey measures include

9、d . 87 . 103 Appendix C: Survey methodology technical appendix . 103 Appendix D: . 110 Significance testing methods . 110 4 FINANCIAL WELL-BEING IN AMERICA Executive summary An essential part of the Consumer Financial Protection Bureau (CFPB or Bureau)s mission is empowering consumers to take contro

10、l over their financial lives. In addition to a safe, transparent marketplace, consumers need the financial capability to effectively navigate that marketplace to achieve their own financial and life goals. Defining, measuring, and studying what contributes to financial well-beingthe “ultimate goal”

11、of financial education, has been a key part of the CFPBs strategy for improving financial capability. CFPBs rigorous set of research activities has produced a consumer-driven definition of financial well-being,1 and a reliable and validated scale for measuring it. Using this scale, which produces a

12、financial well- being score that falls between 0 and 100, financial well-being can be meaningfully compared between people and over time. In late 2016, the CFPB fielded for the first time the financial well-being scale in a nationwide survey of adults in the United States. In addition to measuring i

13、ndividuals financial well-being, the survey collected a host of other measures, including items related to: (1) individual characteristics; (2) household and family characteristics; (3) income and employment characteristics; (4) savings and safety nets; (5) financial experiences; and (6) financial b

14、ehaviors, skills, and attitudes. This report presents the surveys findings on the distribution of financial well-being scores for the U.S. adult population overall and for selected subgroups defined by these additional measures. These descriptive findings provide insight into which 1 CFPB defines fi

15、nancial well-being as a state of being wherein a person can fully meet current and ongoing financial obligations, can feel secure in their financial future, and is able to make choices that allow enjoyment of life. See “Financial Well-Being: The goal of financial education” for more information on t

16、his definition, available at: consumerfinance.gov/data-research/research-reports/financial-well-being/ 5 FINANCIAL WELL-BEING IN AMERICA subgroups are faring relatively well and which ones are facing greater financial challenges.2 At the same time, the report raises important questions about what ma

17、y drive variations in financial well-being within subgroups and how these factors may work together to determine an individuals level of financial well-being. This report provides a first-of-its-kind view into the state of financial well-being in America. By showing whether and how a wide range of c

18、haracteristics, opportunities, experiences, behaviors, skills, and attitudes are associated with financial well-being, we hope this report will catalyze researchers, policymakers, and practitioners to further explore these relationships to determine the factors that drive an individuals financial we

19、ll-being and opportunities to help improve peoples financial lives through financial education and related supports. Key findings There is wide variation in how people in the U.S. feel about their financial well- being. The average financial well-being score for U.S. adults is 54 on a scale that fal

20、ls between zero and 100. 3 However, there is a 35-point spread between the top 10 percent and the bottom 10 percent of scores. About a third of all adults in the United States have financial well-being scores of 50 or below, about a third have scores between 51 and 60, and about a third have scores

21、of 61 or above. 2 While all differences presented in this report have been found to be statistically significant, the findings are nonetheless descriptive in nature. Importantly, the descriptive relationships between various characteristics and financial well-being do not necessarily mean there is a

22、 causal relationship. Such characteristics may be related to financial well-being for many reasons. While it is possible that one or more of these factors may influence how individuals perceive their financial security and freedom to make financial choices, it is also possible that the reverse is tr

23、uethat financial well-being influences one or more of these factors. There may also be underlying, unobserved factors that are correlated with both financial well-being and these characteristics and that account for the observed associations. For similar reasons, in cases where these initial finding

24、s do not indicate an association between a particular factor and financial well-being, it does not necessarily mean that a relationship does not exist. Only through deeper analysis that controls for multiple factors can the true relationships between these characteristics and financial well-being be

25、 identified. 3 54 is also the median level. 6 FINANCIAL WELL-BEING IN AMERICA Financial well-being scores reflect real differences in underlying financial circumstances. Scores of 50 or below are associated with both a high probability (well above 50%) of struggling to make ends meet and of experien

26、cing material hardship.4 By contrast, scores of 61 and above are associated with low probability (less than 10%) of having trouble paying for basic needs or making ends meet. These results suggest that the financial well-being scale is a helpful measure for gauging how individuals are faring financi

27、ally. Financial well-being scores provide information beyond traditional financial measures. For example, at all household income levels financial well-being scores vary widely, and someone with lower income can have higher financial well-being than someone with higher income. The fact that, for a g

28、iven score, some individuals have faced or are facing difficult financial circumstances (i.e., material hardships or difficulty making ends meet) and some are not shows that the same financial well-being score can reflect a diversity of circumstances, conditions, or perceptions. Savings and financia

29、l cushions provide the greatest differentiation between people with different levels of financial well-being. Of all the factors that we examined, disparities in financial well-being are greatest between subgroups that have different levels of liquid savings. The average financial well-being for adu

30、lts with the lowest level of savings (less than $250) is 41, compared to 68 for adults with the highest level of liquid saving ($75,000 or more). When we look at a related measurethe capacity to absorb unexpected expenseswe observe similar differences in scores. These findings highlight the importan

31、ce of savings and other safety nets in helping people to feel financially secure, one of the basic elements of financial well-being. Certain experiences with debt and credit seem to be stronglyand negatively associated with financial well-being. These include whether someone has been denied credit,

32、has used a non-bank short-term credit product,5 and has been contacted by a debt 4 Defined as running out, or worrying about running out, of food, not being able to afford medical treatment or a place to live, or having utilities turned off. 5 Non-bank, short-term credit products include, for exampl

33、e, payday loans, pawn loans, and auto title loans. 7 FINANCIAL WELL-BEING IN AMERICA collector. It is possible that these associations simply reflect the correlation between these experiences and a general lack of financial resources, which could be at the root of the lower financial well-being. How

34、ever, it is also possible that these experiences have more specific and direct relationships with financial well-being. Higher levels of financial know-how, confidence, and certain day-to-day money management behaviors appear to have strong and positive relationships with financial well-being. In pa

35、rticular, confidence in ones ability to achieve financial goals, having a regular habit of saving money, and engaging in effective day-to-day money management behaviors6 are all associated with higher average financial well-being. In addition, individuals with relatively high levels of financial kno

36、wledge and financial skills have higher average financial well-being (with larger differences in financial well-being between subgroups with different levels of financial skills than between subgroups with different levels of financial knowledge). 7 Many financial and demographic characteristics are

37、 associated with financial well- being, but several are not. Many standard financial and sociodemographic characteristics appear to be related to financial well-being. Not surprisingly, employment status, income, and educational attainment all seem to have a strong relationship with financial well-b

38、eing. In addition, it appears that financial well-being is higher for older adults, especially those aged 65 and older. 8 6 Specific money management practices that respondents were asked about included: (1) paying bills on time; (2) staying within their budget or spending plan; (3) paying credit ca

39、rd balances in full each month; and (4) checking their statements, bills, and receipts to make sure there were no errors. 7 We measure financial skill using a 10-item financial skill scale developed by the CFPB. We measure financial knowledge using the 10-item version of the Knoll-Houts Financial Kn

40、owledge Scale (see The Financial Knowledge Scale: An Application of Item Response Theory to the Assessment of Financial Literacy, available at 8 There are many possible factors that may contribute to these results. The positive association between financial well- being and age, for instance, could b

41、e due to changes in financial factors that correspond to the life course, such as higher incomes that come with longer tenure in the job market for those who are still working, increased asset accumulation over time, or the security that comes with access to social benefits such as Social Security retirement 8 FINANCIAL WELL-BEING IN AMERICA However, other sociodemographic categorizations do not appear to have such a strong relationship with financial well-being. For example, there are no differences in average financial well-being based on U.S. regio