How Does Financial IQ Help You?
Financial IQ™ by World Financial Group (WFG) is an online personal finance quiz that enables anyone to test their financial resilience- or what we consider financial preparedness - for a future where anything can happen financially. This financial quiz consists of five simple questions. While the score matters, what you do next matters even more if you’re among the average consumer who is not financially resilient.
World Financial Group established the FIQ, or Financial Intelligence Quotient, to better understand our impact on our clients, our training agents, and our licensed agents in their journey before WFG and after. And to understand, we hired a third-party agency to study the general population, our training agents, and our licensed agents to compare the impact.
In conducting this inaugural study in 2022, we found both concerning and encouraging results. Our initial goal was to understand the impact WFG has had on financial resilience and financial literacy. However, we learned so much more!
The results of our financial prep study revealed that 22% of the general population could not sustain themselves to pay their bills for more than one month if an unexpected event resulted in a loss of income. The data regarding the general population is very concerning as it reveals that people aren’t planning and aren’t prepared should they experience a loss of revenue, such as a critical illness or job loss. WFG is alarmed by this, and we want to make a difference to improve financial understanding for every person out there and get them more prepared financially to live a life well-lived.
What was encouraging were the responses from WFG clients. Among WFG clients, 69% are confident that they will achieve their short-term financial priorities and aspirations. Only 52% of the general population feels the same way. This suggests an added level of financial confidence after connecting with a WFG agent.
In learning about WFG, prospective clients learn about financial topics, and through this, they are increasing their FIQ/gaining knowledge. The journey of learning about financial options helps people gain confidence and reduce their anxiety about money and their future finances.
Increasing your understanding of financial matters regarding short- or long-term goals will also compound your financial confidence in managing your money.
- 55% of WFG clients feel they understand financial matters, compared to only 47% of the general population (less than half).
- 69% of WFG clients are confident they will achieve their short-term financial priorities. In comparison, only 52% of the general population is confident.
- Almost one-third (32%) of the general population doesn’t have a financial plan.
Without a structured financial plan, people are more likely to focus on the day-to-day cost of living and won’t overcome obstacles to save for a down payment on a home or even to pay off credit card debt. At WFG, we believe in engaging in financial preparation early and thinking about having options for longer-term goals – 79% of clients are investing in their future through prioritizing retirement as a long-term goal, while this is true for only 51% of the general population.
We will be able to continue to assess the understanding, control, preparedness, and confidence of the population around finances and determine the effect on financial resilience in future surveys and from the results of our financial quiz. With the results we collect from the WFGIA field, as well as from the general market, WFG will continue to measure the improving financial resilience, literacy and outcomes and will show the difference WFG makes when people join or even discuss financial matters with one of our agents.
A higher FIQ number from our personal finance test shows that you feel more prepared for the future financially. Want to learn more or improve your FIQ and how you feel about your financial future? We are here to help.