Understanding Financial Health Scores

CshFlow's Financial Health Score gives you a simple way to understand your overall financial wellness at a glance.

What Is the Financial Health Score?

The Financial Health Score is a 0-100 rating that measures how well your finances are doing across several key areas. Instead of tracking dozens of separate metrics, you get one number and letter grade that summarizes your financial situation.

What It Measures

Your score is based on five areas of financial health:

1. Emergency Fund

Do you have savings to cover unexpected expenses? Having money set aside for emergencies is one of the strongest predictors of financial security and reduced stress.

2. Debt Level

How much debt do you carry relative to your income? Lower debt means more financial freedom and flexibility.

3. Savings Rate

Are you putting money aside each month? A healthy savings rate means you're building wealth rather than just getting by.

4. Cash Flow

Is money coming in faster than it's going out? Positive cash flow is essential for building financial security.

5. Fixed Expenses

What percentage of your income goes to recurring bills? Lower fixed costs give you more flexibility to handle changes in income or unexpected expenses.

Understanding Your Grade

Grade	What It Means
A	Excellent - Strong financial foundation with good savings, low debt, and positive cash flow
B	Good - Solid financial health with room for improvement in some areas
C	Fair - Adequate finances but vulnerable to disruption; some areas need attention
D	Needs Work - Financial challenges that require focused attention
F	Critical - Significant financial stress requiring immediate action

How to Improve Your Score

Start with the Basics

• Build an emergency fund (even $500-1,000 makes a difference)
• Stop accumulating new debt
• Spend less than you earn

Then Optimize

• Increase your savings rate
• Pay down existing debt
• Review and reduce recurring expenses you don't need

Stay Consistent

Financial health improves through steady, consistent habits rather than dramatic changes that don't last.

Canadian Financial Standards

CshFlow's scoring is informed by Canadian financial best practices:

• Financial Consumer Agency of Canada (FCAC) recommends 3-6 months of expenses in emergency savings
• Canada Mortgage and Housing Corporation (CMHC) guidelines on debt levels
• The 50/30/20 rule suggests putting 20% of income toward savings and debt repayment

What the Score Doesn't Include

Your Financial Health Score is based on your transaction history:

• It does not access your credit report
• Checking your score does not affect your credit rating
• It does not share data with any third parties

Getting the Most Accurate Score

For the most accurate score:

• Upload at least 3 months of transaction history
• Include transactions from all your bank accounts
• Keep your data current with regular uploads

Privacy

• Your score is calculated using only your uploaded data
• No information is shared with credit bureaus or third parties
• Your score is private to your account
• Delete your data anytime

Related Features

• Daily Spending - Use your daily limit to stay on track
• Recurring Expenses - Manage your fixed costs
• Vendor Analysis - See where your money goes

Resources

If you're working to improve your financial health, these free Canadian resources can help:

• Credit Counselling Canada (creditcounsellingcanada.ca) - Free, non-profit credit counseling
• Financial Consumer Agency of Canada (canada.ca/en/financial-consumer-agency) - Government financial resources
• 211 Canada (dial 211) - Connect to local financial assistance programs

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Your Financial Health Score helps you understand your finances at a glance and track your progress over time.