Your HelloWallet Financial Wellness Score is comprised of individual components that make up your financial landscape. Your Score is tailored to your personal financial situation based on the information that you've added to HelloWallet.
Each of the eight components can give you an understanding your Score and provide ideas for improvement.
Spend Less Than You Earn
This Score component compares your total spending from the past three calendar months to your total earnings over the same time frame. The goal is to spend 90% or less of your earnings.
Your recommended Emergency Savings in HelloWallet is intended to help you prepare for unexpected expenses. Depending on the assets you've entered in your HelloWallet profile, we recommend having between 3-6 months of your annual household income set aside for emergencies. HelloWallet's suggested amount for your emergency fund is to help ensure you can protect your assets without relying on credit cards or taking out a loan to do so.
Credit Card Balance
The Credit Card Balance component assesses your ability to pay off your credit cards in full each month based on your checking account balances. Your Score will increase as your credit card balances decrease. If your credit card balances are greater than your checking account balances, HelloWallet's Guidance will provide you with a personalized paydown plan.
In addition to your Emergency Fund savings, HelloWallet will assess your health insurance and savings to cover your deductible and out of pocket medical expenses. Accounts like FSAs or HSAs will count toward your Health Coverage Score component as well.
Other Loans Balance
This component is based on the ratio of your household's gross annual income to the total of your loans, excluding mortgages. You'll achieve maximum points when you have no loans, and no points if your loans (excluding mortgage) make up more than two-thirds your household's gross annual income.
This Score component is evaluating the current insurance policies that you have told us about in HelloWallet. Depending on the household information and assets you've entered in your Profile, your Score will reflect the necessary coverage. For insurance types such as disability and life, your score is comparing your coverage to your current household income.
This Score component evaluates your ability to close the gap between your estimated Social Security benefit and a retirement income goal, which is set by default to be a percentage of your household’s current gross annual income. To close that gap, we project the income that a pension (if you have one) and savings from a retirement account
If you have specified home ownership in your HelloWallet Profile or added a mortgage account, you will see the Home Equity component of your Score. This component compares your total home value to your current mortgage balance. You will get full points for this component if you have 20% ownership (equity) of your home.
Pro Tip! Did you know that you can see exactly how we determine your Score? In the Score tab, click 'Show Details' to review your Score calculations.