Research

Financial Literacy Education
Progress in Measuring Changes in Financial Distress and Financial Well-Being as a Result of Financial Literacy Programs, Consumer Interest Annual, 2007, Garman, MacDicken, Hunt, Shatwell, Haynes, Hanson, Hanson, Olson, & Woehler

Introduction

This paper provides an overview of recent uses of the InCharge Financial Distress/Financial Well-Being Scale (IFDFW). It is a valid and reliable measure (Prawitz, Garman, Sorhaindo, O'Neill, Kim, & Drentea, 2006) having undergone a rigorous process to test for both content and construct validity. The concise, simple to administer, easy to interpret 8-question instrument assesses the level of stress and well-being emanating from one's personal financial situation including negative and positive feelings about and reactions to the financial condition.

The IFDFW measures a latent construct representing responses to one's financial state on a scoring continuum from 1 to 10 ranging from overwhelming financial distress/lowest level of financial well-being to no financial distress/highest financial well-being. The IFDFW consistently and accurately measures the construct repeatedly over time with various populations. An IFDFW score allows self-assessment. It facilitates early detection of problems, provides evidence of the need for appropriate intervention and is useful in assessing the effectiveness of ensuing interventions. Read more (Word)...