Table 2

Dimensions and variables used to construct the objective FWI

DimensionVariables
Financial SophisticationHaving high liquid and low-risk savings products (e.g. Savings Account)
Having investments in mutual funds
Having stocks, bonds or foreign currency investments
Having a credit card
Having consumer and microcredit loans
Having mortgage or leasing loans
Use of digital channels, payments and online transactions
ProtectionHaving home insurance
Having life insurance
Having children's education insurance
Having other insurance types (e.g. vehicle)
WealthOwn a house
Ratio Total debt/Assets
DebtCredit score
Debt service/Income
Credit card utilization ratio (Credit card balances/Total credit limit)
Number of Credit card advances (3-month window)
Days past due
Number of loans refinanced (3-month window)
SavingsSavings/Income
Time covered by emergency fund
Make regular savings (3-month window)
PlanningRatio Variable Income/Fixed Income
Mean expenses variability (3-month window)
Have direct debits
SpendingBasic expenses/Income
Non-basic expenses/Income
Paycheck to paycheck
Source(s): Authors’ own work

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