By definition financial wellbeing is when a person is able to meet expenses and has some money left over, is in control of their finances and feels financially secure, now and in the future.
We created this score to help guide you to understand the areas that you need to focus in on. The score has 5 main dimensions to it. We have based dimensions on established best practices and research:
- Reducing spend: Managing your money well means spending less than your income. This builds financial resilience and helps you deal with unexpected events.
- Managing your debt: Controlling your debt means you’re able to pay what you owe, without being plagued by late fees or sinking into more serious financial difficulty.
- Increase your savings: Saving money brings you peace of mind, helping you deal with life’s sudden and unexpected expenses.
- Treat yourself: Managing your finances shouldn’t mean restricting yourself to the point where you’re not able to enjoy life. In fact, staying in control of your money means giving yourself the freedom to treat yourself every now and then.
- Planning for the future: Setting a strong financial goal shows that you are committed to providing for your future, as well as helping you develop good spending and saving habits over time.
Each of these dimensions are weighted to create your overall Frollo Score. To give the score a little more meaning we decided to put them into ranges so you could easily understand how you are going.
The ranges are listed below:
- Below average to average (500-509)
- Average (510-621)
- Good (622-725)
- Very good (726-832)
- Excellent (833-1000)
What does this all mean for you?
The idea is if you can improve each of these dimensions you will likely increase your financial wellbeing and score.