The CFPB is launching a nationwide effort to advance financial education in schools. The Bureau published “Advancing K-12 Financial Education: A Guide for Policymakers,” a resource guide that contains strategies for furthering the development and implementation of financial education in states. The guide is targeted at state policymakers, but is also intended to be useful for all members of the financial education community.
Educating consumers is one of the CFPB’s directives under the Dodd-Frank Act. When announcing the initiative, the CFPB stated that “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.”
A more financially-savvy consumer could also benefit the banking industry by lessening the expectations that financial services providers play a paternalistic role in consumer financial decisions as the industry attempts to navigate murky UDAAP standards that are based on a “reasonable consumer’s” interpretation.
You can read the entire guide for policymakers at www.consumerfinance.gov.