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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
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What is Financial Fitness & How is it Measured?Dr. J. Michael Collins, University of Wisconsin-Madison
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+Time for a poll
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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?
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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
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Challenge for Field
1. What are the outcomes?
2. What is the return on investment?…costs and benefits
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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
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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
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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)
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Measuring Outcomes
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Financial Capability Scale I
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Financial Capability Scale II
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Financial Capability Scale Components: Change Over Time
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+Time for a poll
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Financial Wellbeing
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Social and
Economic Environment
Personality & attitudes
Decision context
Knowledge & skills
Financial well-being
Behavior&
Actions
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Financial Well-being I
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Financial Well-being II
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Scoring the Financial Well-being Scale…
Using the Look Up Table
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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
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Moving Forward
Illustrative Studies… Retirement Savings Education: Quasi-experiment with employees:
increased retirement deferrals by 47 percent ($30 / month)
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High School Financial Education: 90-Day Loan Delinquency Rate by Graduation Year Before & After State Mandate
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+Time for a poll
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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
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Homework
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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?
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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?
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Connect with MFLN Personal Finance Online!
MFLN Personal Finance
MFLN Personal Finance @MFLNPF
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MFLN Intro
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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
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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
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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
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• 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
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