U.S. Financial Health Pulse

Despite a strong economy, millions of Americans face financial struggles. These difficulties include lower household net worth, increased loan defaults, and high levels of credit card debt. These are the findings in the recent report, U.S. Financial Health Pulse, published by the Center for Financial Services Innovation (CFSI), in partnership with Omidyar Network, the Metlife Foundation, and AARP. 

The report assesses various financial health indicators that include income, bill payment, spending, saving, debt load, insurance, retirement planning and credit scores. When combined, these factors provide a composite view of the spending, saving, borrowing, and financial planning activities of Americans.

Some of the findings of the 2018 baseline report include:

• 17 percent of American are viewed as financially vulnerable, 55 percent financially coping, and 28 percent financially healthy.
• 47 percent of respondents reported spending that equals or exceeds their income.
• 36 percent are unable to pay all of their bills on time.
• 30 percent say they have more debt than is manageable.

U.S. Financial Health Pulse is intended to guide financial institutions, government agencies, and community organization in developing educational programs and financial products to better serve the needs of Americans. This study will be conducted each year to determine changes in America’s financial health.

For additional information on U.S. Financial Health Pulse and to view the report, click here.

Teaching Suggestions

• Have students talk to friends to determine which of the financial health indicators they believe to be most important.
• Have students create a survey instrument to measure various financial health indicators.

 Discussion Questions 

1. What are the benefits of measuring financial health in our society?
2. Describe actions that might be taken by business, government, and community organizations to address the financial difficulties faced by people.