Patent Publication Number: US-2023133007-A1

Title: Method of Generation and Securing a Financial Maturity Scoring

Description:
RELATED ART 
     This application claims the benefit of the priority of U.S. Provisional Application No. 63/272,956, filed on Oct. 28, 2021, titled “Method of Generation and Securing a Financial Maturity Scoring,” and is incorporated by reference in its entirety herein. 
    
    
     BACKGROUND OF THE INVENTION 
     Field of the Invention 
     This invention generally relates to wealth management and, more particularly, to financial wellness. 
     Background 
     A requirement for opening a brokerage stock or commodity account is the verification of suitability and knowledge of investing. This verification typically is accomplished by simply asking the person if they have experience. A person answering such a question may be uncomfortable telling the truth or fail to fully understand the question. No understanding of financial knowledge, wisdom, and foresight occurs, and no quantitative measurement occurs. 
     Often a credit score is erroneously used as an indication of financial knowledge. The problem with such an approach is that a credit score is a measure of creditworthiness and not financial knowledge. Just because a person pays their bills on time does not mean they have an understanding for making financial decisions. 
     Therefore, there is a need in the art for an approach to create a score for financial knowledge, wisdom, and foresight. 
     SUMMARY 
     Systems and methods consistent with the present invention provide an approach for generating and updating a Money score. The Money score is a measure of financial knowledge, wisdom, and foresight for a person. A Money score is a summarized measure of all your financial decisions, and it is a representation of financial wellness, just as a credit score is a measure of creditworthiness. A Money score is generated by weighting predetermined questions and accessing a person&#39;s different types of accounts electronically. Additionally, the Money score is then secured in the cloud and can be accessed by a user with a code or anyone else that the code is provided. 
     The Money score will also help a person identify the areas where they might need some improvement. The great thing about a Money score is that a person has control over it and can take steps to improve it at their pace. Unlike credit scores, a low Money score is not a sentencing, rather the Money score is a true reflection of one&#39;s financial knowledge and experience. The Money score can improve with education and experience, which would help improve one&#39;s financial life in the long run. 
     Other methods, features, and advantages of the invention will become apparent to one with skill in the art upon examination of the following figures and detailed description. It is intended that all such additional methods, features, and advantages be included within this description, be within the scope of the invention, and be protected by the accompanying claims. 
    
    
     
       BRIEF DESCRIPTION OF THE FIGURES 
       The components in the figures are not necessarily to scale, emphasis instead being placed upon illustrating the principles of the invention. In the figures, like reference numerals designate corresponding parts throughout the different views. 
         FIG.  1    is a block diagram  100  of a server  102  executing instructions for an approach to generate and store a Money score in accordance with an example implementation of the invention. 
         FIG.  2    is a block diagram  200  of a computer (desktop/laptop)  202  executing instructions for communicating with the server  102  of  FIG.  1    in accordance with an example implementation of the invention. 
         FIG.  3    is a block diagram  300  of a mobile computing device (MCD)  302  executing instructions for communication with the server  102  of  FIG.  1    to generate a Money score in accordance with an example implementation of the invention. 
         FIG.  4    is an illustration  400  of the mobile computing device (MCD) being used to access a Money score of  FIG.  3    in accordance with an example implementation of the invention. 
         FIG.  5    is an illustration  500  of information used to generate a Money score  502  in accordance with an example implementation. 
         FIG.  6    is a table  600  of the correlation of the Money score factors in accordance with an example implementation of the invention. 
         FIG.  7    is a spider plot  700  of the Money score factors that result in a Money score in accordance with an example implementation of the invention. 
         FIG.  8    is a flow diagram  800  of the Money score approach running on a MCD of  FIG.  4    in accordance with an example implementation of the invention. 
     
    
    
     DETAILED DESCRIPTION 
     In  FIG.  1   , a block diagram  100  of server  102  executing instructions for determining and securing a Money score (also may be called Debit score or Mt. Diablo Score) approach is depicted in accordance with an example implementation of the invention. The server  102  has at least one processor or controller  104  coupled to a memory  108 , communication interfaces  110  (i.e., wireless and/or wired), power module  112 , human interface  114  (i.e., mouse, keyboard, microphone, camera), data store  116  (cloud storage, external database, internal disk), display  118  (i.e., graphics/video card, monitor) by a bus  106  (data, address, and/or power). The memory may be subdivided into an application memory  120  and operating system memory  122  that store instructions for determining and securing a Money score and the operating system. The memory  108  may be RAM/ROM/EEPROM/PROM to give but a few examples. The communication interfaces  110  connect the server  102  with one or more other networks, such as the internet/cloud  124 . In other implementations, other networks may be accessed prior to or in addition to the internet cloud  124 . 
     Turning to  FIG.  2   , a block diagram  200  of the computer (desktop/laptop)  202  executing instructions for communicating with the server  102  of  FIG.  1    is depicted in accordance with an example implementation of the invention. The computer  202  has at least one processor or controller  204  coupled to a memory  208 , communication interfaces  210  (i.e., wireless and/or wired), power module  212 , human interface  214  (i.e., mouse, keyboard, microphone, camera), data store  216  (cloud storage, external database, internal disk), display  218  (i.e., graphics/video card, monitor) by a bus  206  (data, address, and/or power). The memory may be subdivided into application memory  220  and operating system memory  222 . The memory  208  may be RAM/ROM/EEPROM/PROM to give but a few examples. The communication interfaces  210  connect the computer  202  with one or more other networks, such as the internet/cloud  124 . In other implementations, other networks may be accessed prior to or in addition to the internet cloud  124 . 
     In  FIG.  3   , a block diagram  300  of a mobile computing device (MCD)  302  executing instructions for communication with the server  102  of  FIG.  1    in accordance with an example implementation. The MCD  302  has at least one processor or controller  304  coupled to a memory  308 , communication interfaces  310  (i.e., cellular, wireless internet, Bluetooth, GPS), power module  312  that may also be coupled with the communication interfaces via USB type (A, B, C, etc. . . .) connector, user interface  314  (i.e., touch screen, microphone), scanner/camera module  316 , display  318  (i.e., graphics/video card, monitor) by a bus  306  (data, address, and/or power). The memory may be subdivided into a mobile application memory  320  and operating system/records memory  322 . The memory  108  may be RAM/ROM/EEPROM/PROM to give but a few examples. The communication interfaces  110  connect the server  102  with one or more other networks, such as the internet/cloud  124 , and also may connect to a cellular network. In other implementations, other networks may be accessed prior to or in addition to the internet cloud  124 . 
     Turning to  FIG.  4   , an illustration  400  of a location-based mobile shopping computer network connecting local businesses  404 ,  406  selling items with local shoppers via their MCD  302  of  FIG.  3   . The MCD  302  receives location information from a plurality of GPS satellites (represented by satellite  401 ) and/or cellular network  408 . The MCD  302  may also communicate with a data network, such as the internet  124  via wireless internet or the cellular network  408 . 
     A server  102  hosting and/or accessing data to determine and secure Money score is connected to the internet  124 . Similarly, other people or businesses  404  and  406  with computers  202  and  402  respectively are also connected to the internet. Depending upon the implementation, the computer  202  and  402  may be connected to the cellular network  408 . 
     A user, using a network-connected device, such as MCD  302 , access server  102 , preferably using with world wide web (the web), and displays a webpage on the display  318  of the MCD  302  in response to the accessing the server  102 . The connection or communication with server  102  may occur over a wireless nest  408  that connects to one or more other networks, commonly called the internet  124 , that server  102  is also connected with. 
     Upon initially accessing the webpage for determining and securing a Money score, a user of the MCD  302  will be prompted to set up an account (Money score user account) with a user identification (ID) and password. that will be stored in a manner enabling access by the server (i.e., database located locally, remotely, or in the cloud accessible via the internet.) The initial generation of a Money score occurs with a plurality of weighted questions being presented to the user. Each answer carries a predetermined weight in the current implementation. The weighted answers are then processed, and a resulting Money score is provided to the user via display  318 . The Money score is then saved in a manner similar to the user account. In addition, the Money score may be encrypted with a public/private key. 
     The weighted questions are associated with a plurality of Money score factors. The factors are Opportunity Cost, Motivation, Temperament, Digitization, Information (knowledge), Alpha, Beta, Leverage. All Money score factors work in relation to each other in determining a Money score. For instance, Age and Risk have a high correlation, whereas Risk and Alpha have some correlation as well. Temperament and Alpha have some correlation as well. All of these factors are used as input to derive a Money score. And since many of these factors can and will change over time, and their interplay will also change over time, a person&#39;s score will also change over time and can be in an updated Money score. Preferably, a Money score would be updated every three to six months. 
     Motivation (M)—A person&#39;s motivation and end goals play a significant role in determining the Money score. Because if you are motivated by your end goals, you are more likely to put in the effort to achieve those goals and be more disciplined and diligent. Motivation can make a 3% to 5% difference in the Money score. 
     Temperament (Time Period for Holding Investments) (T)—How long investments are held plays a considerable role in how much wealth you accumulate and also how high a Money score a person can have. This factor can make a 5% to 10% difference in a person&#39;s Money score. 
     Digitization (D)—A well-organized digital repository of all the information about a person&#39;s financial life makes retrieval and application of the information much more effortless. For instance, if a person has their home mortgage information all digitized in a spreadsheet, you can enter new refinance rates into the spreadsheet and find out within seconds whether it is worth the time and hassle to refinance at the new lower rate. We have calculated that this can make up to 5% difference in a Money score, and when combined with other factors, it can have as high as 10% impact. 
     Information (I)—How much knowledge a person possesses about the market, real estate, the economy, international commerce, and everything else related to the business world makes a difference in the quality of that person&#39;s financial decisions. This knowledge and information, combined with other factors, can make between 5-10% difference in their Money score. 
     Alpha (A)—The rate of return on investment has the most significant impact on the long-term financial outcome. And it also has the largest effect on a person&#39;s Money score. Alpha is described as the return on investment above a benchmark rate (i.e., S&amp;P 500 index). Alpha can make 15% to 30% difference in a person&#39;s Money score in correlation with other attributes. 
     Beta (B)—Beta is a person&#39;s risk tolerance. Managing risk while pursuing investments has a pretty significant impact on long-term financial health and performance as well as the Money score. Too much or too little risk-taking, adjusted for age and other factors, will result in a lower Money score. On the other hand, managing risk well can make 5% to 15% difference in a person&#39;s Money score. 
     Leverage (L)—Leverage is your ability to manage debt wisely. When done well and strategically, debt management will enhance financial health &amp; performance and also result in a higher score. No debt at all or too much debt will result in a lower score. A sound strategy to manage debt can improve your score anywhere from 5% to 20%. 
     Opportunity Cost (O)—Deep understanding of compounding (as in compound interest) and opportunity cost would result in a higher Money score and is also very likely to lead to better financial outcomes over the long run. Understanding compounding and opportunity cost really well can boost your Money score by 10% to 15%. In addition to the above major factors, the following minor factors can also impact your score by up to 3%-5% each: 
     Savings Rate (S)—How much money a person is able to save for retirement, investment, education, etc., has a large impact on your ability to accumulate wealth. And it also has some impact on a person&#39;s Money score. The savings rate in and of itself doesn&#39;t directly impact the Money score, but when taken in correlation with other attributes, it can make up to 5% difference in a person&#39;s score. 
     Age (Ag)—A person&#39;s age is a key score factor because financial risk appetite varies greatly with age. If you are exceptionally financially risk-averse at a very young age, then the Money score is lower. Conversely, if you take extreme financial risks at an older age, your score would also be lower. Age is only a correlating factor and does not impact the Money score directly. 
     Education &amp; General Ability (E)—The highest level of education also correlates with information/knowledge and impacts a person&#39;s financial wellness portion of the Money score. General ability correlates to, and to some extent determines, knowledge and Alpha because the ability to hold a lot of unstructured information in your head and process it to arrive at decisions is more likely to result in Alpha. 
     Contrarian &amp; Intellectual Agility (Ia)—If a person is comfortable being a contrarian, i.e., comfortable holding an unpopular opinion (and sticking to it) and swimming against the tide, that ability is reflected in the Money score. The Money score will be higher, and the person&#39;s financial wellness will likely be better as a result. Changing decisions when new information surfaces is a keystone habit of those with high Money scores. 
     Career &amp; Income Growth (C)—Something can be created out of nothing. The first $100 k needs to be earned to be invested. And the most likely source of this first $100 k is a financially rewarding career. Therefore, 5-year growth in reported income (i.e., social security reported income which can be found on www.ssa.gov), especially the annual growth, captures the career growth over a period of years. 
     Investment Experience (Ie)—Years in the market determine the long-term financial outcomes. This is heavily influenced by the age at which a person starts investing. 
     In  FIG.  5   , an illustration  500  of information used to generate a Money score  502  is depicted in accordance with an example implementation. The approach for generation of Money score  502  may access a person&#39;s financial accounts, such as mortgage account  504 , credit report  506 , bank accounts  508 , retirement accounts  510  and investments  512  and electronic pull information directly from these accounts. This may be in addition to having a person answer multiple questions associated with the Money score factors. In the example implementation, a user would have to enter information associated with each of the different accounts, which may include login and passwords. The Money score approach may securely store (i.e., using encryption, such as public-private key encryption, basic encryption, or other type of known encryption) the login and password information for the other accounts and periodically access the accounts in order to update their Money score. 
     A personal financial repository, such as an electronic wallet, may be used as a storage location for the person&#39;s Money score. As the personal financial repository may also contain information for accessing of a person&#39;s other accounts (i.e.,  504 - 512  of  FIG.  5   ), the Money score generation and updating may be integrated with accessing the information in the personal financial repository automatically. In other implementations, permission may be requested by the Money score application prior to accessing account information in the personal financial repository. In yet other implementations, cryptocurrency and Non-fungible tokens accounts may also be accessed and used in the generation of the Money score. It is envisioned that more than one digital wallet may be maintained by a person and would be automatically accessed by the application to determine the Money score. 
     Turning to  FIG.  6   , a table  600  of the correlation of the Money score factors is depicted in accordance with an example implementation. The correlation assists in determining the Money score but also may be used to verify the validity of answers to the different questions. As responses to questions for different Money score factors with a high correlation in table  600  should also have a high correlation, similarly, for medium and low correlated Money score factors and questions. 
     The Money score may be updated by answering the weighted questions again and accessing the accounts identified in  FIG.  5    in the current implementation. In other implementations, targeted questions may be accessed related to a portion of the Money score that is being updated and an updated Money score. Examples of targeted weighted questions would be associated with changes in a person&#39;s Opportunity Cost, Motivation, Temperament, Digitization, Information (knowledge), Alpha, Beta. 
     An example of the use of the Money score is when seeking financial advice from friends or relatives. Often bad and frivolous advice is offered with no way to calibrate how to measure the authenticity of the person doling out this advice. But by reviewing a person&#39;s Money score, an accurate indicator of financial wellness and performance of the advice-giving individual can be ascertained. When a person offers financial advice, they can be asked for a Money score access code (i.e., decryption key) for their Money score. The Money score server may be accessed by an agent (web application) where the Money score access code is entered, and that person&#39;s Money score is displayed. Other information, such as an identifier (person&#39;s name, picture, birth date, or other identification data) may be displayed. Thus, a Money score is securely stored but yet maybe selectively accessed for verification purposes. 
     In  FIG.  7   , a spider plot  700  of the Money score factors that result in a Money score  502  of  FIG.  5   , in accordance with an example implementation of the invention. Each of the Money score factors in the example has been identified and weighted in accordance with their respective correlations. An example algorithm for determining an individual Money score is: 
     Step 1: Normalize each value so it is between 1 and  100 . 
     Step 2: Money score=(0.05*(M+T+D+I+B))+0.15*A+0.20*L+O*0.10+(0.05*(S+Ag+E+Ia+C+Ie)) 
     The individual Money score factors are added together and scaled to a value out of 100. In the current example, the resulting Money score is 49 out of 100. This Money score is a representation of a person&#39;s financial experience and/or knowledge, rather than a person&#39;s credit worthiness. 
     Turning to  FIG.  8   , a flow diagram  800  of a Money score approach of  FIG.  4   , is depicted in accordance with an example implementation. The high, medium, and low mathematical correlation of the Money score factors are identified. The MCD executes instructions that determine if a user is a new user/returning user or if the user of the MCD is seeking to access somebody else Money score in step  802 . If it has been determined that a user of the MCD desires to access another person&#39;s Money score and has entered the code for that person (also in step  802 ), the MCD sends the code to the server for retrieval of the Money score associated with that code in step  804 . The Money score that has been decrypted at the server is then sent to the MCD in step  806 . In other implementations, the Money score may be sent encrypted to the MCD, where a public or local description key may be used to decrypt the Money score. The Money score is then displayed on the MCD in step  808 . If the person using the MCD is a new user in step  802 , then that person is prompted to enter the personal account information that is sent to the server to create a Money score user. A returning user is able to enter the code they have been assigned in step  802  to access their already derived Money score, as explained in steps  804 - 808 . If the user is a new user who has set up an account or an existing user who seeks to update their Money score, they are provided a series of questions or prompts associated with the Money score factors, where the answers are sent to the server for processing in step  810 . The server may also electronically access a person&#39;s other accounts, identified in  FIG.  5   , in determining the Money score. The resulting generated Money score is returned along with the code for accessing the Money score in step  812 . The resulting Money score (and code) are displayed in step  808 . 
     It will be understood and is appreciated by persons skilled in the art, that one or more processes, sub-processes, or process steps described in connection with  FIG.  8    may be performed by hardware and/or software (machine-readable instructions). If the approach is performed by software, the software may reside in software memory in a suitable electronic processing component or system, such as one or more of the functional components or modules schematically depicted in the figures. 
     The software in software memory may include an ordered listing of executable instructions for implementing logical functions (that is, “logic” that may be implemented either in digital form such as digital circuitry or source code or in analog form such as analog circuitry or an analog source such an analog electrical, sound or video signal), and may selectively be embodied in any computer-readable permanent media for use by or in connection with an instruction execution system, apparatus, or device, such as a computer-based system, processor-containing system, or other system that may selectively fetch the instructions from the instruction execution system, apparatus, or device and execute the instructions. In the context of this disclosure, a “computer-readable medium” is any tangible means that may contain or store the program for use by or in connection with the instruction execution system, apparatus, or device. The tangible computer readable medium may selectively be, for example, but is not limited to, an electronic, magnetic, optical, electromagnetic, or semiconductor system, apparatus or device. More specific examples, but nonetheless a non-exhaustive list, of tangible computer-readable media would include the following: a portable computer diskette (magnetic), a RAM (electronic), a read-only memory “ROM” (electronic), an erasable programmable read-only memory (EPROM or Flash memory) (electronic) and a portable compact disc read-only memory “CDROM” (optical). Note that the tangible computer-readable medium may even be paper (punch cards or punch tape) or another suitable medium upon which the instructions may be electronically captured, then compiled, interpreted or otherwise processed in a suitable manner if necessary, and stored in a computer memory. 
     The foregoing description of an implementation has been presented for purposes of illustration and description. It is not exhaustive and does not limit the claimed inventions to the precise form disclosed. Modifications and variations are possible in light of the above description or may be acquired from practicing the invention. The claims and their equivalents define the scope of the invention.