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Chair Khan Remarks at Financial Literacy and Education Commission Public Meeting

Event description.

Chair Lina M. Khan will provide remarks at a public meeting of the Financial Literacy and Education Commission (FLEC). Join the live webcast:  http://www.yorkcast.com/treasury/events/2022/11/17/flec

Transcript - Files

File Remarks of Chair Lina M. Khan As Prepared for Delivery Financial Literacy and Education Commission Public Meeting (212.7 KB)

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  • Kreyòl Ayisyen

Consumer Financial Protection Bureau

Joining the Financial Literacy and Education Commission

Today, I attended my first public meeting of the Financial Literacy and Education Commission . Financial education has been a passion of mine for years. The ability to understand and control one’s finances is one of the most important life skills. It creates a path to economic independence and mobility. I view it as fundamental to responsible citizenship in our system of economic democracy.

As Director of the CFPB, I will serve as the Vice Chair of the Commission. I am proud to work with the representatives of the Commission who represent agencies throughout the federal government as we share a common vision of sustained financial well-being for all Americans.

At the Consumer Bureau, one of our responsibilities is to provide consumers with tools to manage their own financial lives. Yesterday, we posted a draft monthly mortgage statement to solicit feedback from consumers, industry stakeholders, and others. The information is intended to help consumers stay on top of their mortgage costs, and hold mortgage servicers accountable for fixing errors. We have also launched several Know Before You Owe campaigns to bring greater transparency to the markets for mortgages , credit cards , and student loans .

Giving people the tools and helping them build the skills to manage their money boosts personal confidence and protects their dignity. Dr. Martin Luther King, Jr. once said that “The dignity of the individual will flourish when the decisions concerning his life are in his own hands, when he has the means to seek self-improvement.” At the Consumer Bureau, we believe in empowering people to make informed financial decisions and then take responsibility for those decisions.

Join the conversation. Follow CFPB on X (formerly Twitter) and Facebook .

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Financial Literacy and Education Commission: Further Progress Needed to Ensure an Effective National Strategy

The Financial Literacy and Education Improvement Act created, in December 2003, the Financial Literacy and Education Commission. This statement is based on a report issued in December 2006, which responded to the act's mandate that GAO assess the Commission's progress in (1) developing a national strategy; (2) developing a Web site and hotline; and (3) coordinating federal efforts and promoting partnerships among the federal, state, local, nonprofit, and private sectors. To address these objectives, GAO analyzed Commission documents, interviewed its member agencies and private financial literacy organizations, and benchmarked the national strategy against GAO's criteria for such strategies.

Full Report

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Yvonne Jones Director [email protected] (202) 512-6806

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Chuck Young Managing Director [email protected] (202) 512-4800

Money matters: Your guide to financial literacy

Financial literacy rates must improve around the world.

Financial literacy rates must improve around the world. Image:  Desola Lanre-Ologun/Unsplash

.chakra .wef-1c7l3mo{-webkit-transition:all 0.15s ease-out;transition:all 0.15s ease-out;cursor:pointer;-webkit-text-decoration:none;text-decoration:none;outline:none;color:inherit;}.chakra .wef-1c7l3mo:hover,.chakra .wef-1c7l3mo[data-hover]{-webkit-text-decoration:underline;text-decoration:underline;}.chakra .wef-1c7l3mo:focus,.chakra .wef-1c7l3mo[data-focus]{box-shadow:0 0 0 3px rgba(168,203,251,0.5);} Meagan Andrews

Haleh nazeri.

financial literacy and education commission

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Stay up to date:, financial and monetary systems.

  • April 2024 was National Financial Literacy month in the US, but adult financial literacy rates in the country have hovered around the 50% mark for the past eight years.
  • This round-up of articles looks at the challenges and solutions of improving financial literacy rates around the world.
  • The World Economic Forum’s Financial Literacy Initiative aims to increase access to financial education and investing practices.

The world of finance can be a complex place, but it’s important to develop a basic understanding of the influential role money plays in our work, social life, health, education and everything in between.

From the influence of technology in driving financial inclusion to efforts to close the gender wealth gap, we go behind the scenes to keep you in the loop.

Here are the must-read financial literacy articles and videos from April – National Financial Literacy month in the US – on Agenda.

Have you read?

How storytelling is teaching children around the world financial literacy, bridging the financial literacy gender gap: here are 5 digital inclusion projects making a difference, women’s financial literacy benefits us all — here’s how, operation hope, tech and financial education.

Technology is providing a gateway for historically excluded people to manage their own financial future.

With inclusion in financial services at an all-time high, technology can facilitate widespread education, accessibility and affordability that were previously reserved for a wealthy few, opening doors and breaking down barriers worldwide.

Read more from the chairman and CEO of Operation HOPE, the US’s largest financial literacy organization: Inclusion in US financial services is at an all-time high – and tech can take us further

Longevity and financial literacy

Boosting women’s financial literacy helps increase their financial freedom and security in retirement.

A policy push to boost access to financial education, alongside industry investment in services and economic opportunities specifically for women, could help relieve deep systemic inequalities such as the gender wealth gap.

Read more: How boosting women’s financial literacy could help you live a long, fulfilling life

Financial literacy gap

Worldwide, 35% of men are financially literate compared with 30% of women. It may not sound like much of a difference, but this gap is significant globally, exists in both developed and developing economies and doesn’t look like closing any time soon.

There are some solutions that can help. Watch the video below for three ways to improve financial literacy among women.

Action on financial literacy

Americans generally perform poorly on understanding key financial concepts; this deficiency in financial knowledge extends globally, affecting economic and personal outcomes.

The consequences of low financial knowledge are costly and sweeping, yet the TIAA Institute-GFLEC Personal Finance Index (P-Fin Index), released on 17 April 2024, gives Americans a failing grade when it comes to understanding the concepts that underpin decisions about saving for retirement, managing debt or insuring against risks.

Read more: It’s financial literacy month: From schools to the workplace, let's take action

Young people and investing

Young people are actively investing in capital markets, with 70% of retail investors under the age of 45. However, young people globally have financial literacy rates that hover below 50%.

Boosting financial literacy can help empower young people to invest with higher returns, avoid high levels of debt and increase their overall financial well-being.

Read more: Globally young people are investing more than ever, but do they have the best tools to do so?

The financial services industry is facing several future risks, including vulnerabilities to cyberattacks due to artificial intelligence and new financial products creating debt.

The World Economic Forum’s Centre for Financial and Monetary Systems works with the public and private sectors to design a more sustainable, resilient, trusted and accessible financial system worldwide.

Learn more about our impact:

  • Net zero future: Our Financing the Transition to a Net Zero Future initiative is accelerating capital mobilization in support of breakthrough decarbonization technologies to help transition the global economy to net zero emissions.
  • Green Building Principles: Our action plan for net zero carbon buildings offers a roadmap to help companies deliver net zero carbon buildings and meet key climate commitments.
  • Financing biodiversity: We are convening leading financial institutions to advance the understanding of risks related to biodiversity loss and the opportunities to adopt mitigation strategies through our Biodiversity Finance initiative.

Want to know more about our centre’s impact or get involved? Contact us .

Misunderstanding risk and why it matters

Around half of US adults were unable to answer three financial literacy questions posed by the recent P-Fin Index survey. Risk proved the least understood aspect of finance.

How do you think you would fare? Watch the video below to test your financial knowhow and see what can be done to improve our understanding of financial matters.

A question of finance

US financial literacy rates have been stubbornly hovering around the 50% mark for eight consecutive years, with a 2% drop in the past two years, according to the latest P-Fin Index.

Financial (il)literacy is holding steady: 2017-2024

In the European Union, a quarter of respondents scored low for knowledge in the 2023 Eurobarometer survey on financial literacy , with 18% at a low level of financial literacy.

Don't miss any update on this topic

Create a free account and access your personalized content collection with our latest publications and analyses.

License and Republishing

World Economic Forum articles may be republished in accordance with the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Public License, and in accordance with our Terms of Use.

The views expressed in this article are those of the author alone and not the World Economic Forum.

Related topics:

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A weekly update of the most important issues driving the global agenda

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financial literacy and education commission

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financial literacy and education commission

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financial literacy and education commission

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Financial Literacy and Education Commission: Further Progress Needed to Ensure an Effective National Strategy

Should Mass. high school seniors need to take financial literacy classes for graduation?

BOSTON — With its history of fiercely local municipal control, requiring that Massachusetts high school students take a financial literacy course in order to qualify for graduation may come down to putting it before the voters in the form of a ballot question.

John Pelletier, director of the Champlain College Center for Financial Literacy in Vermont.

That is the approach being taken by California, a local-control state similar to Massachusetts, in order to force its school districts to make classes available as a requirement for graduation, according to John Pelletier, director of the Champlain College Center for Financial Literacy in Vermont.

Pelletier attended a legislative briefing Monday to support bills that address the lack of standardized financial literacy courses in public schools. Two measures, one reported out of the Joint Committee on Education , the second a later file, are similar in calling for standardized curriculum.

However, the Senate bill, filed by Sen. Patrick O’Connor, R-Weymouth, only requires that a class in financial literacy be offered as an elective. The House bill filed by Rep. Ryan Hamilton, D-Methuen, would make it a requirement for graduation.

“Massachusetts is being left behind,” Pelletier said, explaining that if the state does not act, it could be the only one in the nation in the 2030s that fails to educate its youth in making financial decisions. According to the Center, Massachusetts has earned a failing grade of “F” along with California, the District of Columbia and South Dakota, in student financial literacy.

And California is taking steps to remedy the lack, Pelletier said, adding that in South Dakota, 50% of school districts require financial literacy courses as a graduation requirement and 40% offer the courses as an elective. “So they only have a 10% gap,” Pelletier said.

The mission to have financial literacy courses available to Massachusetts students is dear to Treasurer Deborah Goldberg. She started the process almost as soon as she was elected in 2015, picking a panel of experts to work on creating and implementing a plan.

“We learned the best way to address the lack of financial understanding was to present it in schools, where the kids are, through a standardized curriculum,” Goldberg said at the briefing. She remembers a childhood school field trip to a local bank where all the kids received passbooks and started saving their pennies, nickels and dimes to deposit them regularly.

“These courses are not available in our schools,” Goldberg said. She noted that high school seniors face big, complicated financial decisions that will affect the rest of their lives: deciding whether and where to continue their educations, whether to take loans to pay for schooling and even how to maximize loans.

“Working people loaded down with debt affect the Massachusetts economy; they can’t be consumers,” Goldberg said. Debt inhibits people’s ability to move ahead with their lives, transition from a shared rental property to homeownership, to establishing a family and caring for it.

In her remarks, Goldberg said that as treasurer she didn’t need to know the rate of convergence for speeding conveyances, but she needed to know it for the Massachusetts Comprehensive Assessment system. She said she also doesn’t find a need for algebra, but “I need to know how to pay my bills.”

Financial literacy classes are critical for students, for the future of Massachusetts families and for all residents, she said. While ideally, the financial literacy classes should be mandatory throughout public schools in Massachusetts, Goldberg said, she understands that districts have difficulty with unfunded mandates.

O’Connor said the legislature included a $100,000 line item in a past budget and used the funds to educate 80 teachers, introducing them to financial literacy curriculum and how to convey it to their students. The senator suggested that 83% of Massachusetts residents support the concept of teaching financial literacy as a mandatory graduation requirement and that support transcends political lines.

Data offered by Pelletier indicates that financial literacy rates differ along cultural, ethnic and financial lines. Older adults are more financially savvy than youngster adults; and men, especially in certain cultures, are more financially literate than women. Income, education and employment are also indicators, with higher earners and those with higher education reflecting higher levels of literacy. Employed people are also more informed about money.

Lower-income residents and those living in poorly resourced communities, and residents who identify as of color, also have lower levels of financial know-how. They have higher debt levels, lower credit scores, higher delinquency rates and use financial tools like payday loans.

Financial literacy is a matter of equity, Pelletier said, adding the only way to fix the deficit is that it be a graduation requirement for high school students.

“Massachusetts needs 723 teachers to educate the 73,200 students who would take a financial literacy course that was required for graduation,” Pelletier said, adding that once educators are trained to teach the course, he estimates the state would spend $3,000 per teacher, the bulk of the cost would be met. The group, Next Generation Personal Finance , has the curriculum and teaching tools available online for free.

First steps, the legislators agree, is to have each district offer financial literacy courses as electives and then make it a graduation requirement.

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Michigan Teachers Chosen as State Finalists for Math, Science Presidential Teaching Award

May 09, 2024

LANSING – Four outstanding Michigan educators who work with elementary school students have been selected as state finalists for the 2024 Presidential Awards for Excellence in Mathematics and Science Teaching, the Michigan Department of Education announced today.

  • Rebecca Durling, Discovery Elementary School, Williamston Community Schools, Science.
  • Molly Jeppesen, Symons Elementary School, Milan Area Schools, Science.
  • Jessica Mahl, Jane Addams Elementary School, South Redford School District, Science.
  • Janice Kato, North Elementary School, Birch Run Area Schools, Mathematics.

“Michigan and its students are fortunate to have so many dedicated and talented teachers,” said State Superintendent Dr. Michael F. Rice. “We salute these great educators and wish them the best of luck at the national level this year.”

The Presidential Awards for Excellence in Mathematics and Science Teaching program is administered by the National Science Foundation on behalf of the White House Office of Science and Technology Policy.

Each year, a national committee of prominent mathematicians, scientists, mathematics/science education researchers, district-level personnel, and classroom teachers recommends up to 110 teachers to receive the awards.

Of the finalists, up to two mathematics or science teachers from each state, the District of Columbia, Puerto Rico, U.S. territories as a group, and schools operated in the United States and overseas by the Department of Defense Education Activity receive the award.

Awardees receive a trip to Washington, D.C., where they attend a series of recognition events and professional development opportunities. They also earn a $10,000 award from the National Science Foundation and a presidential certificate and join an elite group of award-winning teachers who support and promote their state or jurisdiction and science, technology, engineering, and mathematics teaching.

For more information, visit the Presidential Awards for Excellence in Mathematics and Science Teaching website .

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517-241-4395

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COMMENTS

  1. Financial Literacy and Education Commission

    The Commission is a federal agency that develops a national financial education strategy and a national financial education web site (MyMoney.gov) to help Americans make informed financial decisions. It is chaired by the Secretary of the Treasury and the Consumer Financial Protection Bureau. Learn about its vision, members, activities, resources, and reports.

  2. Home

    The Financial Literacy and Education Commission's vision is of sustained financial well-being for all individuals and families in the U.S. In furtherance of this vision, the Commission sets strategic direction for policy, education, practice, research, and coordination so that all Americans make informed financial decisions. Learn more about FLEC.

  3. About MyMoney.gov

    The Commission was established by the Financial Literacy and Education Improvement Act, Title V of the Fair and Accurate Credit Transactions Act of 2003 (P.L. 108-159). The Secretary of the Treasury chairs the Commission, and the Director of the Consumer Financial Protection Bureau is the vice-chair. Learn More. Learn more about the FLEC.

  4. Financial Literacy and Education Commission

    The Financial Literacy and Education Commission (the Commission) was established under Title V, the Financial Literacy and Education Improvement Act which was part of the Fair and Accurate Credit Transactions Act (FACT) Act of 2003, to improve financial literacy and education of persons in the United States. The FACT Act named the Secretary of the Treasury as head of the Commission and ...

  5. PDF U.S. National Strategy for Financial Literacy 2020

    The FLEC will use this National Strategy to guide its actions and will report on its success in implementing this plan in the years ahead.18. Review of Federal Activities. Treasury's 2019 report Federal Financial Literacy Reform included an assessment and review of federal finan-cial literacy and education activities.

  6. Chair Khan Remarks at Financial Literacy and Education Commission

    The Commission will consider all timely and responsive public comments, whether filed in paper or electronic form, and as a matter of discretion, we make every effort to remove home contact information for individuals from the public comments before posting them on the FTC website.

  7. PDF Annual Report to Congress

    the financial literacy and education of persons in the United States through the development of a national strategy to promote financial literacy and education."3 The FLEC's key responsibilities include the following: • Hold three public meetings per year to coordinate and promote financial literacy and education among federal agencies.

  8. U.S. National Strategy for Financial Literacy, 2020

    With enhanced coordination, the Financial Literacy and Education Commission (FLEC) can effectively mobilize expertise and resources to provide assistance when and where it is most needed. The National Strategy 2020 describes a new structure to better organize the FLEC. It also identifies planned actions in priority areas of basic financial ...

  9. What We're Reading: A Review of the U.S. National Strategy for ...

    The Financial Literacy and Education Commission (FLEC) is comprised of 22 federal agencies and the White House's Domestic Policy Council. Created by Congress in 2003, the commission's purpose is to, "coordinate the federal government's financial literacy efforts and improve the financial education of all Americans." FLEC released its ...

  10. Speech by Governor Bowman on financial literacy and inclusion

    At the Financial Literacy and Education Commission Public Meeting, Financial Literacy and Education Commission, Washington, DC (via webcast) Share. Watch Live. Good morning. It is a pleasure to join today's meeting, I appreciate the invitation from the Financial Literacy and Education Commission (FLEC) to speak to this important ...

  11. Financial Literacy Education and Paying for College

    According to the Financial Literacy and Education Commission's 2019 Best Practices for Financial Literacy at Institutions of Higher Education report, effectively engaging students and providing clear, timely, and customized information about student borrowing could be keys to reducing poor financial outcomes. Individuals who receive personal ...

  12. Financial Literacy and Education Commission: Progress Made in Fostering

    The Financial Literacy and Education Commission has addressed some of GAO's recommendations and not others: The National Strategy remains largely descriptive. GAO's 2006 report noted that the Commission's National Strategy for Financial Literacy largely was descriptive rather than strategic, generally did not include a plan for implementation ...

  13. Taking Ownership of the Future: The National Strategy for Financial

    The Financial Literacy & Education Commission has concluded that an effective national strategy must encompass four crucial areas, discussed in detail in this report: (1) building public awareness of available resources; (2) developing tailored, targeted materials and dissemination strategies; (3) tapping into public-private and private-private ...

  14. Financial Literacy and Education Commission: Further Progress Needed to

    The Financial Literacy and Education Improvement Act created, in December 2003, the Financial Literacy and Education Commission. Responding to the act's mandate that GAO assess the Commission's effectiveness, this report reviews its progress in (1) developing a national strategy; (2) developing a Web site and hotline; and (3) coordinating federal efforts and promoting partnerships among the ...

  15. Joining the Financial Literacy and Education Commission

    Joining the Financial Literacy and Education Commission. By Richard Cordray - FEB 14, 2012. Share & print. Today, I attended my first public meeting of the Financial Literacy and Education Commission . Financial education has been a passion of mine for years. The ability to understand and control one's finances is one of the most important ...

  16. 20 USC Ch. 77: FINANCIAL LITERACY AND EDUCATION IMPROVEMENT

    The report required under paragraph (1) shall include—. (A) the national strategy for financial literacy and education, as described under subsection (f); (B) information concerning the implementation of the duties of the Commission under subsections (a) through (g); (C) an assessment of the success of the Commission in implementing the ...

  17. Financial Literacy and Education Commission: Further Progress Needed to

    The Financial Literacy and Education Improvement Act created, in December 2003, the Financial Literacy and Education Commission. This statement is based on a report issued in December 2006, which responded to the act's mandate that GAO assess the Commission's progress in (1) developing a national strategy; (2) developing a Web site and hotline; and (3) coordinating federal efforts and ...

  18. Money matters: Your guide to financial literacy

    The World Economic Forum's Financial Literacy Initiative aims to increase access to financial education and investing practices. The world of finance can be a complex place, but it's important to develop a basic understanding of the influential role money plays in our work, social life, health, education and everything in between.

  19. Financial Literacy Month 2024: A Comprehensive Focus on Financial

    Financial Literacy Month, an event pioneered by the National Endowment for Financial Education (NEFE) over 20 years ago, has evolved into Financial Capability Month, reflecting a broader approach to all the dynamics that determine financial well-being. ... Throughout April, NEFE and its partners amplified efforts to promote financial literacy ...

  20. S.4248

    Summary of S.4248 - 118th Congress (2023-2024): A bill to require the Financial Literacy and Education Commission to carry out a study on the impact of language barriers to financial health, to require the website and toll-free telephone number of the Commission to be provided in the most commonly spoken languages in the United States, and for other purposes.

  21. Tennessee educators honored with Financial Literacy Awards

    Nashville — The Tennessee Financial Literacy Commission is honoring educators from Tennessee's three grand divisions for their leadership in bringing financial education to their schools. Alison Thompson, Sue Stringfield, Dr. Kristen Lynch, and Dr. Shemon Reaves were presented with the Tennessee Financial Literacy Commission Leadership Award by Treasurer David H. Lillard, Jr. at an event in ...

  22. Financial Literacy and Education Commission: Further Progress Needed to

    The Financial Literacy and Education Improvement Act created, in December 2003, the Financial Literacy and Education Commission. Responding to the act's mandate that GAO assess the Commission's effectiveness, this report reviews its progress in (1) developing a national strategy; (2) developing a Web site and hotline; and (3) coordinating federal efforts and promoting partnerships among ...

  23. This Bill Would Promote Financial Literacy for Thousands of Military

    Implementation of financial literacy programs is typically left to state governments, but one House bill would mandate such a program in Department of Defense schools, and bring financial ...

  24. Lawmakers eye financial literacy electives, possible mandates

    Income, education and employment are also indicators, with higher earners and those with higher education reflecting higher levels of literacy. Employed people are also more informed about money.

  25. 10 Tips for Financial Literacy Month

    Throughout the month of April, NASFAA joins the higher education community and other organizations across the country to celebrate Financial Literacy Month. Making smart choices with your money doesn't stop with paying for college — students need to be educated about managing their financial lives outside of school, too.

  26. Michigan Teachers Chosen as State Finalists for Math, Science

    Resources related to financial and pupil accounting and auditing. ... School Safety and Mental Health Commission ... mathematics/science education researchers, district-level personnel, and classroom teachers recommends up to 110 teachers to receive the awards. Up to two mathematics or science teachers from each state, the District of Columbia ...