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Measurement of financial well-being, a review of the literature
General Information
Title
Measurement of financial well-being, a review of the literature
Author
Monami Dasgupta and Geetika Palta
Publication Type
Working paper
Outlet
Dvara Research
Year
2022
Abstract
Financial well-being measures the ability of a household or individual to function
on a daily basis, the resilience to withstand negative shocks to earnings and / or
expenditure in the short-term and the ability to meet desired long-term economic
goals. It is increasingly becoming seen as the policy objective of nancial inclusion
in contrast with earlier objectives of the mere access that a household has to the
formal nancial system. However, measuring nancial well-being is a challenge. So
far, approaches to measuring nancial well-being are based on household surveys
where the measures are a combination of facts and perception. If better nancial
well-being is to become the expected outcome of greater inclusion into the nancial
system, then both of these should be regularly measured systematically, and made
available for commercial and research purposes.