CFPB Publishes Resource Guide for Policymakers
WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau announced that it is launching a nationwide effort to advance financial education in schools. The Bureau is publishing “Advancing K-12 Financial Education: A Guide for Policymakers,” a resource guide which contains strategies for furthering the development and implementation of financial education in states. Helping consumers build financial capability is an integral part of the CFPB’s mission.
“We have watched too many Americans struggle to manage their affairs within our complex financial system,” said CFPB Director Richard Cordray. “Financial education in our schools is critical to the financial well-being of future generations. The resource guide will allow the CFPB to serve those policymakers looking to make progress on K-12 education.”
Recent research suggests that students who receive K-12 financial education achieve significantly higher savings and net worth later in life. Additionally, when high schools include prudent financial education requirements, those students tend to have improved credit scores later in life and are less likely to be delinquent on financial obligations as adults. The Bureau believes youth should learn the basic skills that will help them make financial decisions as adults. The Bureau is uniquely positioned to support policymakers by fostering connections among the financial education community and furthering the conversation around K-12 financial education initiatives.
While the guide is targeted at policymakers in the states the guide was designed to benefit all members of the financial education community. The guide’s framework for advancing K-12 financial education has three main sections:
- Laying the groundwork: This section is designed to help policymakers make the case for K-12 financial education, set a strategy for initiatives, define the structure for initiatives, foster partnerships, and secure resources.
- Building the initiative: This section focuses on key components of K-12 financial education including standards and requirements, classroom resources, teacher training, and initiative evaluations.
- Extending the impact: This section contains guidance on how to effectively carry out and expand K-12 financial education initiatives, including information on the resources to support the advancement and recognition of efforts, and improve and scale existing initiatives.
Each section contains guiding questions for policymakers to consider, case studies, and a resource directory with additional information. While the Bureau notes that each state’s unique circumstances may require different approaches, the Bureau hopes that policymakers find the guide helpful as a resource.
In developing today’s guide for policymakers, the CFPB gathered information from a roundtable meeting of K-12 financial education policymakers and leaders, solicited insight from experts in the field, and reviewed financial education research and literature. The Bureau found a need for greater coordination of efforts and sharing of resources. As a result, the CFPB developed this guide to help connect policymakers with tools, information, and insights to enhance K-12 financial education efforts.
A copy of “Advancing K-12 Financial Education: A Guide for Policymakers” is available at: http://www.consumerfinance.gov/reports/advancing-k-12-financial-education-a-guide-for-policymakers/
The Consumer Financial Protection Bureau is a 21st century agency that helps consumer finance markets work by making rules more effective, by consistently and fairly enforcing those rules, and by empowering consumers to take more control over their economic lives. For more information, visit consumerfinance.gov