Description of the Questionnaire

The InCharge Financial Distress/Financial Well-Being Scale (IFDFW) is designed to measure adults’ personal perception of their financial situation, the financial pressure they experience, and their level of financial well-being. It consists of eight questions that reflect both the psychological and functional dimensions of everyday financial life, such as the ability to cover essential expenses, financial worry, and overall satisfaction with one’s financial condition. The tool is systematically used in research, education, and by organizations involved in financial literacy and support.

Objective

The aim of the questionnaire is to validly and reliably assess the level of financial distress and well-being experienced by the participants. By capturing the subjective sense of financial security or hardship, it seeks to provide information useful for both research and advisory purposes. The IFDFW aims to distinguish between different levels of financial condition, identifying individuals or groups with greater need for support, intervention, or education.

Data Analysis and Use

The scientific evaluation of the IFDFW was conducted using various methods, such as a Delphi study with experts, t-tests for group comparisons, factor analysis, and Pearson correlations. To measure internal consistency, the Cronbach’s alpha coefficient was used, yielding a value of 0.956, which demonstrates exceptionally high reliability. The collected data can be used to analyze changes before and after interventions, evaluate educational programs, and support research related to financial behavior and financial stress. The tool enables comparison between the general population and financially distressed groups, contributing to the understanding of how financial factors affect well-being.

Scoring

Participants’ responses are coded with numerical values from 1 to 10 or converted from verbal options into corresponding scores. Results are interpreted as follows: low scores indicate high financial stress and low well-being, while high scores indicate a positive financial condition and reduced stress. Specifically, scores between 3 and 4 indicate significant financial pressure, scores between 5 and 6 suggest a moderate financial condition, and scores above 7 indicate a high level of well-being and low stress. The overall score can be used as a diagnostic indicator of financial well-being at both the individual and population level.

Bibliography

The theoretical and empirical foundation of the questionnaire is primarily based on the work of Prawitz, Garman, Sorhaindo, O’Neill, Kim, and Drentea (2006), as well as established theories of measurement and psychometric evaluation by Nunnally and Bernstein (1994), Litwin (1995), Trochim (2000), and Rosnow and Rosenthal (2005). The development and validation of the IFDFW has been extensively presented in the journal Financial Counseling and Planning, based on data from both the general population and financially distressed consumer groups who had sought help from debt counseling organizations. These sources form the basis for the theoretical framework, question selection, and the procedures for evaluating the validity and reliability of the tool.