Understanding Your Financial Health: An Introduction to the FinHealth Score®

When it comes to money, most of us have felt the stress of juggling bills, managing debt, or trying to save for the future. But how do we know if we’re really “financially healthy”? That’s where the Financial Health Network and their FinHealth Score® come in and why we have partnered with them to use this amazing tool.

What is the Financial Health Network?

The Financial Health Network is a nonprofit organization dedicated to helping people achieve stronger financial well-being. They research financial behaviors, provide insights, and create tools to help individuals, businesses, and communities understand and improve financial health. They also partner with financial institutions, credit unions, fintechs, and employers of all sizes to research and report on trends in financial health.

What is the FinHealth Score®?

The FinHealth Score® is a way to measure a person’s overall financial health. Think of it how a doctor uses your physical vitals like pulse, blood pressure, and other health markers but for your finances. It looks beyond your income or savings and considers how well you manage everyday money matters, prepare for the future, and handle financial challenges.

The overall FinHealth Score® is broken down into four main areas, called sub-scores:

1. Spend – This measures how well you manage your day-to-day expenses. Are you able to cover bills and necessities without constant stress?

2. Save – This looks at your ability to build savings for emergencies or future goals. Do you have a financial cushion for unexpected expenses?

3. Borrow – This evaluates how effectively you handle debt and credit. Are you using credit responsibly, or is debt becoming unmanageable?

4. Plan – This measures your preparedness for future financial needs, like retirement, education, or major life events. Do you have clear goals and a strategy to reach them?

Understanding Financial Health Segments

Based on these subs-cores, individuals are grouped into three financial health segments or categories:

• Financially vulnerable – People in this segment often struggle to meet basic financial needs and have little to no safety net. Households in this category may be one financial hiccup away from disaster.

• Financially coping – These individuals are managing day-to-day expenses but may lack a financial cushion or long-term planning. People in this segment are doing some things well, but they need help to round out their plans.

• Financially healthy – People in this group demonstrate strong financial habits, resilience, and the ability to handle both expected and unexpected expenses. These individuals are making positive financial changes consistently.

Why It Matters

Understanding your FinHealth Score® can help you identify your strengths and areas for improvement in your financial life. Just like a health checkup for your body, knowing your financial health helps you take actionable steps toward stability, security, and long-term goals.

For example, if your Save sub-score is low, you might start small by setting aside even $10 a week in a dedicated savings account. If your Borrow sub-score shows challenges, reviewing and consolidating high-interest debts could be the first step toward improvement.

Takeaway

Financial health isn’t just about how much money you make—it’s about how you spend, save, borrow, and plan. By understanding your FinHealth Score®, you can take meaningful steps to move from financially vulnerable to financially healthy. If you want some help along this journey or insights on where to start, schedule a no cost introductory session with a financial coach today.

Question for You: Where does your financial health stand today, and what small changes could help you feel more secure tomorrow?