The Financial Stability View of the Benchmarking app provides a snapshot of how households are managing their day-to-day finances and meeting regular financial obligations. This view draws from a mix of Critical, Supportive, and Contextual Indicators to surface key insights about household income, spending patterns, debt levels, and lifestyle sustainability.
Each indicator is carefully selected and categorized based on its direct or indirect influence on short-term financial health, following USAA’s Financial Health Framework. Below is a breakdown of the insights available in this view:
Critical Indicators
These indicators have the most significant influence on household financial stability. They are heavily weighted in the scoring model due to their high correlation with day-to-day financial well-being.
- Median Household IncomeDiscretionary income allows better management of unexpected expenses.
- Median Discretionary IncomeHigher income correlates with greater financial stability.
- Median Checking Balance EstimateA higher balance provides a buffer for regular expenses and minor shocks.
- Spendable Income to Discretionary Spending RatioA higher ratio suggests more discretionary income to cover credit card spending.
Supportive Indicators
These provide deeper context for interpreting household financial behavior. While not as impactful individually, they add nuance and reveal potential strengths or vulnerabilities in stability.
- Median 12-Month Household Income ChangePositive changes can enhance stability, while negative changes may indicate potential instability.
- Propensity to Carry Forward Credit BalanceLower propensity indicates better credit management and reduced risk of high-interest debt.
- Affordability ScoresHigher scores suggest households can comfortably afford their lifestyle, contributing to greater stability.
- Propensity to Have a MortgageHigher propensity suggests long-term financial commitments, potentially indicating financial stability but also ongoing debt obligations.
- Home Loan TypeFavorable loan types support long-term financial stability.
- Home Loan RateLower or fixed rates reduce financial risk over time and support day-to-day affordability.
- Propensity to Have an Auto LoanWhile not inherently negative, high propensity of auto debt could impact overall financial stability.
- Propensity to Have a Student LoanA higher likelihood of student loan debt may indicate investment in education but could also contribute to financial strain.
- Propensity to Use a Cash Advance ServiceFrequent use may signal short-term liquidity issues and reliance on high-interest credit options.
- Number of Parents in the WorkforceParental workforce participation impacts household income and stability, reflecting both economic opportunity and potential employment barriers.
Contextual Indicators
These offer context that helps round out the picture of financial stability, though they don’t directly impact the household’s immediate financial performance.
- Percentage that Recently Bought a HomeReflects housing market activity and household willingness to take on long-term financial commitments.
- Percentage with a Recent MortgageShows how many households have taken on new mortgage obligations recently.
- Number of Children in the HouseholdMore children typically increase household expenses, but may also correlate with support services or benefits.
Together, these insights empower stakeholders to understand the financial conditions influencing day-to-day financial success across different population segments. Whether assessing readiness for unexpected expenses or gauging lifestyle affordability, the Financial Stability View delivers focused, actionable intelligence for programs, services, and policy design.
