Technical Reference Document

The FLIQ™
Methodology

A framework for measuring financial behavioral intelligence in young learners through scenario-based, timed simulation — not knowledge testing.

📄 WealthWise Kids™ · 2026 🎯 Ages 10–18 ⏱ 5-Day Simulation 📊 4 Behavioral Domains
Contents

What FLIQ™ Measures

The Financial Learning Intelligence Quotient (FLIQ) Score™ is a behavioral assessment instrument embedded in a 5-day simulation. It does not measure financial knowledge. It measures financial decision-making behavior — specifically, how a student responds to financial pressure, social influence, unexpected costs, and risk across five sequential scenarios.

The distinction is intentional. Research consistently shows that financial knowledge alone does not predict financial behavior. Adults with high financial literacy routinely make poor financial decisions under social pressure, emotional states, and time constraints. The FLIQ Score™ is designed to assess the behavioral dimensions that knowledge-based instruments miss.

What this is: A behavioral baseline. The FLIQ Score™ captures a student's natural decision-making tendencies before instruction — not what they know, but how they act when the stakes feel real and the clock is running.

The score ranges from 0 to 100 and is derived from four behavioral domains, each assessed across the simulation's five days. Students are not graded. There is no "correct" answer to any scenario. The instrument is designed to surface behavioral patterns, not rank students.

What This Draws From

The FLIQ™ framework is grounded in three converging bodies of behavioral and cognitive science research:

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Dual-Process Theory (Kahneman, 2011)
Financial decisions are processed through two systems: fast/intuitive (System 1) and slow/deliberate (System 2). The FLIQ simulation is designed to engage System 1 by creating emotional salience, social pressure, and time constraints — the same conditions under which real financial mistakes occur. Knowledge-based assessments primarily engage System 2.
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Self-Regulation Theory (Baumeister & Tierney, 2011)
Impulse control and delayed gratification are measurable, trainable behavioral capacities. The simulation's sequential structure — five scenarios across five days — is designed to observe whether self-regulation holds, deteriorates, or strengthens as the week progresses and balance decreases.
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Ecological Validity in Assessment (Neisser, 1978)
Assessments that closely resemble real-world conditions produce more behaviorally predictive results than abstract tests. The FLIQ simulation uses age-appropriate scenarios (book fairs, ice cream runs, peer lending, social media purchases) that mirror the actual financial decisions students face — increasing ecological validity relative to traditional financial literacy testing.
Behavioral Economics & Adolescent Decision-Making
Research in adolescent behavioral economics (Steinberg, 2010; Pechman et al., 2011) shows that peer presence and social context dramatically amplify impulsive financial behavior in ages 10–18. The simulation's social pressure scenarios (Days 2 and 4) are specifically calibrated to activate these documented behavioral patterns.

Important note: FLIQ™ draws from these established frameworks in its design logic. The instrument itself has not yet been through independent psychometric validation. See Section 07 for the current validation roadmap.

What Gets Measured and How

Each of the four FLIQ domains is assessed across the five-day simulation. No single day is solely responsible for any domain score. Behavioral patterns across the full week — not individual responses — determine the result.

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Impulse Control
IC
The capacity to pause before acting on a financial want. Measured by spending behavior on non-essential options — particularly under social pressure and time constraints.
2Consistently paused. Chose save/defer on impulse-triggering scenarios, especially under time pressure.
1Mixed. Controlled impulse in some scenarios, acted on it in others — often correlated with balance level.
0Acted on impulse consistently, including when balance was critically low.
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Planning Orientation
PO
The tendency to weigh future consequences when making present decisions. Measured by whether students account for remaining days and balance trajectory across the week.
2Demonstrated consistent forward-thinking — protected balance with awareness of what's coming next.
1Showed planning awareness in some scenarios; responded to immediate context in others.
0Decisions were primarily present-focused regardless of balance trajectory.
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Risk Awareness
RA
The ability to identify asymmetric risk before acting. Measured by responses to the investment/lending scenarios on Day 4 — particularly the relationship between current balance and willingness to gamble.
2Demonstrated calibrated risk evaluation — willingness to risk correlated appropriately with available reserves.
1Showed some risk awareness; decision did not fully account for balance position or downside scenario.
0Accepted or rejected risk without apparent evaluation of position or consequences.
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Resilience & Recovery
RB
Behavioral discipline after a setback. Measured by how students respond to the Day 3 unexpected cost scenario — specifically whether prior spending creates a cascading effect on subsequent decisions.
2Absorbed the setback and recalibrated — decision quality held or improved in Days 4 and 5.
1Some recovery — showed awareness of the setback but not full recalibration.
0Setback on Day 3 triggered escalating patterns — continued or increased impulsive choices in Days 4–5.

How the Score Is Computed

Each domain is scored 0, 1, or 2 based on behavioral patterns across the simulation. Domain scores are summed to produce a raw score (0–8), which is then mapped to a normalized FLIQ Score™ (0–100) and a profile label.

Raw score: IC (0–2) + PO (0–2) + RA (0–2) + RB (0–2) = 0–8 points
Profile mapping: Raw scores map directly to one of nine profile labels (Financial Starter through Exceptional), each anchored to a behavioral description rather than a percentile rank. The table below shows the current mapping.
Note on normalization: The 0–100 FLIQ Score™ range is designed for intuitive readability in facilitator reporting. The specific normalization parameters are being evaluated against pilot cohort data and are subject to revision as the validation dataset grows.

Profile Label Raw Score Behavioral Description
Financial Starter0Behavioral patterns are still forming. First-session scores here are developmentally appropriate and expected.
Emerging1Early awareness present. Impulse patterns are visible, particularly in social pressure scenarios.
Explorer2Building awareness. Student recognizes patterns in retrospect — the next development step is catching them in the moment.
Developing3Solid behavioral foundation. More intentional choices with increasing consistency across the week.
Builder4Deliberate, risk-calibrated decision-making. Balances risk, patience, and recovery well.
Thinker5Makes intentional, context-aware financial decisions. Requires consistent deliberate behavior across all five scenarios.
Advancing6High-signal behavioral profile. Applies context, reads risk, and recovers from pressure with discipline.
Leading7Elite behavioral patterns. Processed scenarios systematically and executed with discipline across the full week.
Exceptional8Exceptional across all four domains. Flagged every behavioral trap and finished stronger than started.

Domain scores are computed from a weighted analysis of option types selected across the week. The simulation tracks each choice's behavioral category (e.g., spend_nonessential, decline_social, negotiate_payment, invest) and maps these to domain scoring rubrics in combination with balance position, prior-day spending patterns, and time-to-decision data.

Why Two Scenarios Have a Countdown

Days 2 and 4 of the simulation introduce a 20-second countdown timer. This is not a game mechanic — it is a methodological decision rooted in behavioral economics research.

Untimed multiple-choice assessments engage deliberate reasoning (System 2). Real financial decisions — particularly those involving social pressure or perceived opportunity — occur under time pressure, emotional activation, and incomplete information. The countdown is designed to replicate the actual conditions under which impulse control failures occur.

Day 2 — Social Pressure Scenario
The group is waiting for an answer. The countdown simulates the social urgency of a real peer spending moment — "Are you coming or not?" Students who choose quickly on a spending option show a different impulse control profile than students who wait or let the clock expire.
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Day 4 — Investment Risk Scenario
A peer presents a limited-time investment opportunity. The countdown simulates the urgency framing used in real financial scams and impulsive investment decisions. Risk awareness measured under time pressure is a qualitatively different data point than risk awareness in an untimed reflection.
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Timer Expiry as a Behavioral Signal
When the 20-second timer expires without a choice, the simulation automatically records Option B (the save/decline choice) with a timer_expired: true flag. This is treated as a high impulse-control signal — the student held through the full pressure window without acting. Decision time in milliseconds is also recorded for all timed scenarios.

What gets recorded on timed days: choice made, option type, time to decision (ms), timer expired (true/false), balance at time of decision, prior impulsive choice count. This produces a richer behavioral signature than any single-choice response.

What Each Profile Means for Facilitators

Profile labels are designed as facilitation entry points, not permanent characterizations. The goal is to give educators a behaviorally grounded starting point for conversation — not to classify students.

The nine labels form a behavioral spectrum anchored by four observable tendencies: how quickly a student acts, how much they weigh consequences, how they respond to social pressure, and whether they recover after a setback. The facilitator class report surfaces each student's domain breakdown — which of the four dimensions drove their profile — giving educators a specific starting point for follow-up discussion rather than a single summary number.

First-session baseline note: The FLIQ Score™ is explicitly designed as a baseline instrument. A student scoring Financial Starter or Emerging on their first session is not being diagnosed. They are establishing a behavioral starting point against which future sessions can be compared. The diagnostic value of the instrument increases with repeated measurement over time.

What's Established and What Isn't

We are committed to transparency about the current validation state of FLIQ™. The instrument is in active field use and the data generated from pilot deployments is being used to build toward formal psychometric validation.

Established
  • Grounded in peer-reviewed behavioral economics frameworks
  • Age-appropriate scenario design (piloted with ages 10–18 across two schools)
  • Four-domain structure aligns with self-regulation research literature
  • Timed mechanic design supported by dual-process theory
  • COPPA/FERPA/SOPIPA compliant — zero PII collected
  • Sequential scenario structure observes pattern consistency
In Progress
  • Independent psychometric validation study
  • Test-retest reliability across repeated sessions
  • Correlation with external behavioral outcomes
  • Inter-rater equivalence for domain scoring rubrics
  • Norm-referenced scoring by age band and demographic
  • Longitudinal predictive validity (behavior → outcome)

The current scoring algorithm was designed with internal consistency as the primary goal: domain scores should reflect behavioral patterns that are logically and theoretically coherent, even before external validation is complete. This is the standard approach for early-stage behavioral instruments deployed alongside curriculum in educational settings.

Institutions that partner with WealthWise Kids™ contribute anonymized cohort data to the validation dataset. The long-term goal is a normed, externally validated behavioral assessment instrument — FLIQ™ — backed by the largest dataset of adolescent financial decision behavior in a controlled simulation environment.

What Data the Simulation Collects

The $100 Week™ simulation is designed from the ground up for deployment in educational settings with minors. It collects no personally identifiable information of any kind.

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Student Identity — Adventure Code Only
Students are identified only by a 4-digit PIN they choose themselves (the Adventure Code). No name, email, age, grade, school, or demographic data is collected from students at any point. The Adventure Code exists only to allow progress continuity on shared devices.
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What Is Stored
Per session: cohort ID (the teacher's class code), Adventure Code, band level, choice sequence (option types, not text), balance trajectory, time-to-decision on timed scenarios, timer expiry flags, and the computed FLIQ profile. No free-text, no biometric, no device identifiers.
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Compliance
The simulation is designed to comply with COPPA (Children's Online Privacy Protection Act), FERPA (Family Educational Rights and Privacy Act), and SOPIPA (Student Online Personal Information Protection Act). No student data is sold, shared with third parties, or used for advertising purposes.
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Data Infrastructure
Session data is stored in a Supabase (PostgreSQL) database with row-level security enabled. Data is scoped to cohort ID — facilitators access their class results using the unique cohort code generated at setup. Individual Adventure Codes are not exposed in any external-facing report; facilitator-visible data shows domain breakdowns and profile labels, not raw choice sequences.