Abstract
Financial planning plays an important role in people’s lives. The recent COVID-19 outbreak has caused sudden unemployment for many people across the globe, leaving them with a financial crisis. Recent surveys indicate that financial matters continue as the leading cause of stress for employees. Further, many millennials overspend and make unfortunate financial decisions due to their incapability to manage their earnings, which forbids them from maintaining financial satisfaction. Financial well-being as defined by The American Consumer Financial Protection Bureau (CFPB) is a state where one fully meets current and ongoing financial obligations, feels secure in their financial future, and is able to make choices to enjoy life. This work proposes a Personal Finance Management (PFM) system with a new architecture that aims to guide users to reach the state of financial well-being, as defined by CFPB. The proposed system consists of a rule-based system that provides users with actionable advice to make informed spending decisions and achieve their financial goals.
Highlights
Money plays a crucial role in people’s lives
An employee financial wellness survey that took place in USA in 2020 revealed that 54% of stress is caused by financial matters, and 41% of millennials are unprepared for unexpected expenses [1]
In Saudi Arabia, a recent survey suggests that the average family expenditure is greater than the average family income [2]
Summary
Money plays a crucial role in people’s lives. Managing one’s financial life can be challenging due to the increased commitments and spending, it may become difficult to achieve the desired financial goals. One may decide to purchase an item as long as he has money to pay for, without considering his overall financial state and future commitments. The CFPB identified four main elements of financial well-being, as follows: 1) Having control over day-to-day, month-to-month finances. 3) Having the financial freedom to make the choices that allow one to enjoy life. The aforementioned elements of financial well-being represent the privileges that an individual who reached the state of financial well-being enjoys. They do not define how someone may reach that state. Many Personal Finance Management (PFM) software are available, but none was designed with the definition of financial well-being in mind, and are unable to guide the user to reach the state of financial wellbeing.
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