Journal article
Measuring Financial Wellbeing with Self-Reported and Bank Record Data*
C Comerton-Forde, J de New, N Salamanca, DC Ribar, A Nicastro, J Ross
Economic Record | WILEY | Published : 2022
Abstract
We develop scales of the financial well-being of customers of a major Australian bank using self-reported survey data matched to customer financial records. Using item response theory (IRT) models, we develop: (1) a Reported Financial Wellbeing Scale from information about people’s experiences and perceptions of financial outcomes; and (2) an Observed Financial Wellbeing Scale from financial record measures of customers’ account balances, net spending and payment problems. Each scale reliably differentiates between a wide range of outcomes, and the scale components have similar power to discriminate. We confirm the validity of the scales by estimating predictive models using other measurable..
View full abstractRelated Projects (1)
Grants
Awarded by Australian Government
Funding Acknowledgements
The authors thank Ben Grauer and Mohammed Khalil for their guidance and direction throughout this project, and Ralph Pusong for his assistance with quantitative analyses. The authors benefited from helpful comments from Trafford Fowler of FiftyFive5, from Kristy Muir and Jack Noone of the Centre for Social Impact at the University of New South Wales, Carsten Murawski and Roger Wilkins of the University of Melbourne, and participants at several workshops and conferences. This research was supported by funding and other resources from the Commonwealth Bank of Australia (CBA) under a collaborative research agreement. The CBA does not stand to have any financial gains from the publication of this research, and does not have the right to direct or vet the research outcomes of this collaboration for publication. The terms of this arrangement were reviewed and approved by The University of Melbourne in accordance with its policy on objectivity in research. This research was also supported (partially or fully) by the Australian Government through the Australian Research Council's Centre of Excellence for Children and Families over the Life Course (Project ID CE200100025). The authors declare no relevant or material financial interests that relate to this research. All opinions and errors are the authors' own.