The Financial Vulnerability Index (FVI) looks at a range of household financial indicators to score how precarious a typical household’s finances are at the neighbourhood level. The financial impact of COVID-19 pandemic is on the minds of many in government, social services, and private industry alike. Which Canadians are least likely to be able to pay for housing, necessities, and manage their debt after a sudden loss of income depends on a range of household financial indicators:
- Availability of savings and liquid assets
- Levels of different types of debt
- A measure of discretionary income
- Debt to discretionary income ratio
The Financial Vulnerability Index is calculated by weighting variables across multiple Environics Analytics databases; WealthScapes, HouseholdSpend and LiquidAssets. Understanding the kinds of populations most likely to be in trouble at a local level allows financial service providers, utilities, and governments to respond with more effectively designed initiatives tailored to these populations’ needs.
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