Exploring the Methodology of Morning Consult’s Financial Well-Being Survey
Are you curious about how researchers measure financial well-being? In a recent blog post, Morning Consult shared insights into their methodology for assessing the financial health, habits, and attitudes of U.S. adults.
Morning Consult conducts monthly surveys with over 2,200 U.S. adults to gather data on various aspects of financial well-being. To determine overall financial well-being, they use the CFPB’s Financial Well-Being Scale and scoring methodology.
The CFPB developed the Financial Well-Being Scale in 2015 to provide a consistent way to quantify individuals’ sense of financial security and freedom of choice. The scale consists of 10 questions that assess factors like financial control, ability to handle financial shocks, and progress towards financial goals.
These 10 questions were carefully selected through cognitive testing, factor analysis, and psychometric testing of large populations. The scoring method used for the Financial Well-Being Scale is based on Item Response Theory (IRT) analysis, which offers a more precise measure than a simple summary score.
The IRT-based scoring method allows researchers to accurately measure aspects of financial well-being that are traditionally challenging to quantify, such as feelings of empowerment, confidence, and satisfaction. The scoring process involves converting the respondent’s self-assessment to a zero-to-four scale and then using a lookup table to determine their overall Financial Well-Being Scale score based on their age group.
Morning Consult is a global decision intelligence company that leverages high-frequency data and artificial intelligence to help leaders make informed decisions based on public opinion and behavior. To learn more about Morning Consult and their research methodologies, visit their website at morningconsult.com.
In conclusion, understanding the methodology behind assessing financial well-being can provide valuable insights into how individuals perceive their financial situation and the factors that contribute to their overall well-being. By using rigorous research methods like the Financial Well-Being Scale, organizations like Morning Consult can help leaders make smarter decisions based on data-driven insights.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial advice. The content is based on general research and may not be accurate, reliable, or up-to-date. Before making any financial decisions, it is recommended to consult with a professional financial advisor or conduct thorough research to verify the accuracy of the information presented. The author and publisher disclaim any liability for any financial losses or damages incurred as a result of relying on the information provided in this article. Readers are encouraged to independently verify the facts and information before making any financial decisions.