Ratios and Benchmarks for Measuring the Financial Well-Being of Families and Individuals

Financial planners and educators comprised a panel of 156 experts in this Delphi study designed to identify and refine ratios and benchmarks for measuring financial well- being. Consensus between the two groups existed for benchmarks on 20 of 22 ratios in the areas of liquidity, savings, asset allocation, inflation prorection, tax burden, hous- ing expenses, and insolvency/credit. Consensus regarding the usefulness of specific ratios was observed for liquidity and tax burden but not for inflation protection and insolvency/credit. The preferred ratios were generally less complex and more easily measuredthanmanyoftheratiosusedinprevious work.From the findings, a profile of financial well-being for the typical family/individual was proposed.