What is the best way to measure financial wellness after financial literacy training?

1 Define financial wellness

Before you can measure financial wellness, you need to define what it means for your organization and your employees. Financial wellness is not just about having enough money to pay the bills, but also about having a positive attitude, confidence, and satisfaction with your financial situation. Financial wellness can be influenced by many factors, such as income, expenses, debt, savings, goals, values, beliefs, and behaviors. Therefore, you need to consider how these factors affect your employees' financial wellness, and what aspects of financial wellness are most relevant and important for them.

2 Choose appropriate metrics

Once you have defined financial wellness, you need to choose appropriate metrics to measure it. Metrics are quantitative or qualitative indicators that can help you assess the impact of financial literacy training on your employees' financial wellness. There are different types of metrics, such as objective, subjective, behavioral, and outcome metrics. Objective metrics are based on factual data, such as income, expenses, debt, savings, credit score, etc. Subjective metrics are based on personal perceptions, such as financial stress, satisfaction, confidence, etc. Behavioral metrics are based on actions, such as budgeting, saving, investing, etc. Outcome metrics are based on results, such as achieving financial goals, improving financial security, etc. You need to select metrics that are relevant, reliable, valid, and measurable for your financial wellness definition.

3 Use multiple methods

After you have chosen your metrics, you need to use multiple methods to collect and analyze the data. Methods are the tools and techniques that can help you gather and interpret the information from your metrics. There are different methods, such as surveys, interviews, focus groups, observations, tests, quizzes, etc. You need to use multiple methods to capture different dimensions of financial wellness, and to triangulate and validate your findings. For example, you can use a survey to measure subjective metrics, such as financial stress or satisfaction, and a test to measure objective metrics, such as financial knowledge or skills. You can also use interviews or focus groups to explore the reasons behind the responses or the behaviors of your employees.

4 Compare before and after

To measure the impact of financial literacy training on financial wellness, you need to compare the data before and after the training. Comparing before and after can help you identify the changes and improvements that occurred as a result of the training. You can use different methods to compare before and after, such as pre-test and post-test, baseline and follow-up, control and experimental groups, etc. You need to use methods that are consistent, fair, and accurate for your comparison. For example, you can use a pre-test and post-test method to measure the same metrics before and after the training, and calculate the difference or the percentage of change.

5 Evaluate and communicate

The final step is to evaluate and communicate the results of your measurement. Evaluating and communicating can help you understand the effectiveness and the value of financial literacy training on financial wellness, and to share the insights and the recommendations with your stakeholders. You can use different methods to evaluate and communicate, such as reports, dashboards, presentations, stories, etc. You need to use methods that are clear, concise, and compelling for your evaluation and communication. For example, you can use a report to summarize the key findings and the implications of your measurement, and a presentation to showcase the success stories and the best practices of your employees.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?