Eight Measurements of Financial Health

The Center for Financial Services Innovation has identified eight indicators to measure financial health. These measurements can serve as a framework for guiding individuals and financial service providers toward an improved quality of life for consumers.

The eight indicators of financial health, presented in four categories, are:


  1. Difference between income and expenses
  2. Percent of bills that are paid on time and in full


  1. Number of months of living expenses in liquid account balances
  2. Amount of one’s long-term savings, assets, and investments


  1. Debt-to-income ratio
  2. Credit score or credit quality tier


  1. Type and extent of insurance coverage
  2. Behaviors that demonstrate future financial orientation

For additional information on financial health indicators, click here.


Teaching Suggestions

  • Have students ask people to describe what is meant by “financial health.”
  • Have students create a list of actions that might be taken to achieve financial health.

 Discussion Questions 

  1. What are additional factors that might be considered when measuring a person’s financial health?
  2. What actions are you taking to achieve financial health?
Categories: Chapter 1, Financial Planning | Tags: , , | Leave a comment

Post navigation

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Blog at WordPress.com.

%d bloggers like this: