Ask an Advisor: What is Financial Wellness?

Financial wellness is a holistic approach to personal finance that is focused on you gaining the knowledge and skills necessary to manage your money and make smart financial decisions in your everyday life. True financial wellness encompasses everything from saving enough for retirement and your children’s education to knowing you have a plan in place to protect your family financially if something happens to you.

Emergency Funds

I know I have enough saved in case of an emergency.

No (0 points)  Yes (2 points)  ____

I have at least 3 months’ worth of income saved.

No (0 points)  Yes (4 points)  ____

I have enough savings to cover the deductibles on my health, auto and home insurance policies.


No
(0 points)  Yes (4 points)  ____

                   Emergency Funds Total: ____

Lifestyle Spending

I consistently spend less than I earn.

No (0 points)  Yes (6 points)  ____

I rarely use credit cards and if I do,
I pay the balance off quickly.


No
(0 points)  Yes (2 points)  ____

I increase my savings when my income increases.

No (0 points)  Yes (2 points)  ____

                   Lifestyle Spending Total: ____

Family Funding

I have a plan in place for funding my children’s college.

No (0 points)  Yes (3 points)  ____

I know about how much my children’s education will cost.

No (0 points)  Yes (2 points)  ____

I am confident that my parents (and my in-laws) will
not need any support.


No
(0 points)  Yes (2 points)  ____

I am familiar with the costs of elder-care and know what expenses
Medicare and Medicaid cover and the qualifications for coverage.


No
(0 points)  Yes (3 points)  ____

                   Family Funding Total: ____

Estate Planning

If something happens to me, I know my family would be okay financially.

No (0 points)  Yes (3 points)  ____

If I were to get sick unexpectedly, my family knows
how I would like to be taken care of.


No
(0 points)  Yes (2 points)  ____

I know what would happen to my assets if I were to pass away.

No (0 points)  Yes (2 points)  ____

I am confident that if I (and my spouse) were to die today,
my (our) dependents would be taken care of.


No
(0 points)  Yes (3 points)  ____

       Estate Planning Total: ____

Retirement Savings

I know I am on track with my retirement savings.

No (0 points)  Yes (2 points)  ____

I am saving at least 15% of my income for retirement.

No (0 points)  Yes (4 points)  ____

I know about how much I will have saved by retirement.

No (0 points)  Yes (2 points)  ____

I feel confident about replacing my
income after retirement.


No
(0 points)  Yes (2 points)  ____

Retirement Savings Total: ____

What Is your Financial Wellness Score?

Do you know where you stand? This exercise can help you identify areas in your financial wellness that may need to be improved. Our approach targets 5 key areas that need to be addresses before you can achieve financial wellness. Answer the questions below then add up your points to produce your Wellness Scores in each category. For every “yes” answer you get points.

What Does Your Score Mean?

Each of the categories points add up to 10. A top score is 50, but not all items will apply to everyone. The best way to assess your score it to look at each category independently—if your score is low, what can you to do to increase that score?

Improving Your Score

To access resources to help you address some of your areas of weakness, download the Financial Wellness Workbook available on-line at: www.vlpfa.com/financial-wellness. The Workbook is free and contains invaluable information that can help you learn the skills necessary to become truly financially well.


At VLP Financial Advisors we believe that strategic planning is the key to creating, protecting, and growing wealth. Our Advisors offers a complementary initial consultation to anyone interested in improving their financial wellness.

Want to learn more?

Visit: www.vlpfa.com or submit your question for an Advisor to info@vlpfa.com


VLP Financial Advisors

(703) 356-4360
8391 Old Courthouse Rd., Suite 20
Vienna, VA 22182

Registered Representatives of and offers Securities and Advisory Services through Cetera Advisor Networks LLC, member FINRA/SIPC, a broker/dealer and Registered Investment Adviser. Cetera is under separate ownership from any other named entity.

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