U.S. Average Adult Scores 52 Out of 100 in Latest CFPB Financial Well-Being Report
Earlier this month, the Consumer Financial Protection Bureau released a report examining the financial well-being of adults in the United States. An individual (18 and older) has a higher financial well-being score when they have a sense of control over their general finances (week-by-week and month-by-month), financial goals and choices, and the ability to handle a financial shock. The scores range from 0 to 100, are based on an analysis of the Financial Industry Regulatory Authority Foundation’s 2018 National Financial Capability Study, and are calculated from ten questions in the CFPB’s Financial Well-Being Scale.
In the United States, the average financial well-being score was 52, falling in the medium-high range. The overall range was small, with a low of 50 in Mississippi and a high of 54 in Washington D.C., California, and Hawaii. State-by-state differences are a result of which products and services are made available per state and varying employment opportunities.
These factors have different effects on different age groups. The CFPB report compares the financial well-being of younger and middle-aged adults (ages 18 to 61) and older adults (ages 62 and older). In 2018, the former group’s score was 49 while the latter’s was 62 in the United States. The report shows the varying scores by these age groups by state, displaying the demographics of U.S. poverty and how geographic factors play a role in adults’ — young and older — financial well-being.
The full report is available at https://files.consumerfinance.gov/f/documents/201911_cfpb_fwb-state-report.pdf.