Financial well-being: the goal of financial education
Consumers of financial products and services need both a safe, transparent marketplace, and the financial capability to navigate that marketplace effectively. This report describe initial research funded by the CFPB into how people acquire financial capability, to inform financial education and improve consumer outcomes. The overarching objective is to determine how to define and measure the success of different financial literacy strategies so that we have a basis for measuring different strategies’ effectiveness. Financial well-being has never been explicitly defined, nor is there a standard way to measure it. This project provides a conceptual framework for defining and measuring success in financial education by delivering a proposed definition of financial well-being, and insight into the factors that contribute to it.