Financial health (or financial well-being) is one of the latest buzzwords to come out of the financial industry. But what does it mean? Perhaps the best – and most inspiring – definition I’ve seen thus far is the one put out recently by the Center for Financial Services Innovation (CFSI):
For consumers, improved financial health is a gateway to other goals and dreams; it is closely tied to mental and physical health, family stability, education, and economic mobility.
One of the things I love about this definition is that it starts to connect the dots between health and financial security, acknowledging the interdependence and importance of both. It also addresses the fact that financial health is about more than simply having more money. It is about achieving goals and dreams. That’s something every consumer can relate to.
ConnectedHealth’s Health and Financial Security (HFS) approach, which we’ve just deconstructed over the past several blogs (Read part 1, part 2, part 3, part 4 and part 5), is designed to help consumers achieve their goals and dreams by facilitating better health and financial security. Most consumers know what their dreams are, but they often don’t have context as to how to achieve those dreams – what strategies, financial products, and insurance products will help them get there.
The HFS approach helps consumers think about how different products and strategies will help them in one of four cornerstone goal areas:
It can also help them understand and evaluate products and strategies in light of different scenarios. For example, “What if I were to become disabled and unable to work? Do I have something in my portfolio that will help me replace the income my family and I depend on?” Consumers need clear and understandable ways to think about these issues – not jargon and technical terminology.
Preliminary data from our My Thrive Score, which measures someone’s health and financial security foundation, shows that many consumers struggle with health and financial security. Providing context and education can go a long way toward helping them make sense of their options and get them solidly on the road to better health and financial security.