Incharge Financial Distress/Financial Well-Being Scale: Development, Administration, and Score Interpretation

ArXiv ID: ssrn-2239338 “View on arXiv”

Authors: Unknown

Abstract

This article describes development of the InCharge Financial Distress/Financial Well-Being Scale, designed to measure a latent construct representing responses

Keywords: Financial Well-Being, Financial Distress, Scale Development, Personal Finance, Psychometrics, Personal Finance

Complexity vs Empirical Score

• Math Complexity: 2.0/10
• Empirical Rigor: 7.0/10
• Quadrant: Street Traders
• Why: The paper focuses on developing and validating a psychometric scale (financial well-being/distress), which involves statistical methods like factor analysis and Cronbach’s alpha, but lacks advanced mathematical theory or derivations. It is highly data and implementation-heavy, involving a rigorous multi-step process to develop, test, and norm a measurement tool for practical use in financial counseling.

  flowchart TD
    A["Research Goal<br/>Develop & Validate Financial<br/>Distress/Well-Being Scale"] --> B["Data Collection<br/>Survey of 405 Adults"]
    B --> C["Methodology Steps<br/>Exploratory & Confirmatory<br/>Factor Analysis"]
    C --> D["Computational Processes<br/>Reliability Tests &<br/>Score Interpretation Algorithm"]
    D --> E["Key Outcomes<br/>Validated 8-Item Scale<br/>Distress/Well-Being Metric"]