What is a financial health score?
Congrats on taking this step in your SaverLife journey! Your score is on a scale of 1 to 100. Here is how to read it:
- 0-39: You might feel like one financial emergency, like a blown tire or unexpected medical bill, would set you back for months. It’s hard to devote time and resources to planning for the future because the present is unstable.
- 40-79: You might have some savings, but perhaps you also have a lot of debt. You’ve started to plan for the future, but not as much as you’d like to.
- 80-100: You are financially stable and actively working towards your long-term financial goals.
The overall score breaks down into 4 subsection scores: Spend, Borrow, Save, and Plan. These four areas are crucial to setting yourself up for financial security.
Why should I care about it?
The score is designed to be a tool for you. Your score is a kind of “pulse check” for you to see which areas of your finances could benefit from some extra attention.
Now that you know your score, you can take action! Maybe there’s something you can change today, like setting up automatic savings or making a budget. If bigger goals like your children’s education or retirement seem unattainable, think about how to break up the long game into manageable steps.
How can I use it as a tool?
You’ve already taken one step towards improving your financial life just by taking the quiz. You can retake the quiz any time and see your score immediately. We recommend taking the quiz every 6 – 12 months to see your progress. Knowledge is power!
You should also check out some of SaverLife’s resources from our certified financial coach, Saundra Davis:
- Spend: 3 Helpful Tips for Tracking Your Spending
- Borrow: Understanding Your Debt
- Save: What Does It Mean to “Pay Yourself First”?
- Plan: Steps to Get Retirement Ready at Any Age