This presentation by Dubis Correal was made at the first session of the OECD-GFLEC Global Research Symposium to Advance Financial Literacy on 6 November 2014, which addressed cutting-edge policy issues and research ideas to advance the global financial literacy agenda. Find out more at http://www.oecd.org/daf/fin/financial-education/oecd-infe-gflecsymposiumfinancialliteracy.htm

1. Consumer Financial Protection Bureau Office of Financial Education 2nd OECD/GFLEC Global Policy Research Symposium to Advance Financial Literacy November 6, 2014
This presentation is being made by a Consumer Financial Protection Bureau representative on behalf of the Bureau. It does not constitute legal interpretation, guidance or advice of the Consumer Financial Protection Bureau. Any opinions or views stated by the presenter are the presenter’s own and may not represent the Bureau’s views.
Note: This document was used in support of a live discussion. As such, it does not necessarily express the entirety of that discussion nor the relative emphasis of topics therein.

2. The Consumer Financial Protection Bureau
Our mission is to make markets for consumer financial products and services work for Americans.
2
Educate
An informed consumer is the first line of defense against abusive practices.
Enforce
We supervise banks, credit unions, and other financial companies, and we enforce federal consumer financial laws
Study
We gather and analyze available information to better understand consumers, financial services providers, and consumer financial markets.

3. Servicemembers
•Improve financial protection
•Monitor Service members complaints
•Coordinate w/ DoD, etc.
•2.2 million military personnel
•22 million veterans
Older Americans
•Protect against financial abuse
•Improve financial literacy
•Planning for life events
•50 million aged 62+
Students
•Increase awareness of debt when selecting a college
•Monitor students complaints
•Build campus awareness
•22-28 million (age 16-26)
Financial Empowerment
•Improve financial stability for low-income & other economically vulnerable consumers
•68 million unbanked or underbanked
•33% of Americans earn less than twice the poverty line
•Approximately 50 million have thin or no credit files
Consumer Education and Engagement
Financial Education
•Provide targeted educational content
•Identify and promote effective fin ed practices
Consumer Engagement
Create interactive, informative relationship with consumers

4. Office of Financial Education Objectives Financial Education Objectives:
•Build a comprehensive approach to financial education in the U.S.: Develop knowledge about what works in financial education and provide opportunities for financial educators to learn about effective strategies
•Promote innovation: Test new ideas and share successful innovations with the field
•Educate consumers: Provide understandable information that helps customers make informed financial decisions
•Educate youth: Build on existing efforts to identify and promote best practices in K-12 financial education
•Increase outreach and federal coordination: Build relationships with all stakeholders. In addition, Director of the CFPB serves as the vice chair of the Financial Literacy and Education Commission
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5. 5
•How are current financial education programs and other financial capability approaches impacting consumer financial knowledge, behavior and well-being
Evaluate What Works
•Develop and test innovative approaches to educating and empowering consumers to make well-informed financial decisions and improve their financial well-being
Test New Ideas
•How do we know what works
Measure What Works
Build a comprehensive approach to financial education and promote innovation

6. Financial well-being
Summary: Financial well-being is a state of being wherein a person can fully meet current and ongoing financial obligations, has secured the future, and is able to make choices that allow enjoyment of life.
Elements of financial well-being:
1.Having control over day to day, month to month finances
2.Having the capability to absorb a financial shock
3.Being on-track to meet financial goals, and
4.Having the financial freedom to make choices that allow one to enjoy life
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7. What influences financial well-being
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8. 8
OECD average
Shanghai-China
Estonia
Australia
New Zealand
Czech Republic
Poland
Latvia
United States
Russian Fed.
France
Slovenia
Spain
Croatia
Israel
Slovak Republic
Italy
Colombia
375
400
425
450
475
500
525
550
575
600
625
Average
score
(FL)
U.S. 15-year-olds not measurably different from OECD-FL average in financial literacy
Higher than the U.S. average score
Lower than the U.S. average score
Not measurably different than the U.S. average score
Source: OECD, PISA 2012.
Belgium (Flemish)
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9. Recommendation 1: Introduce key financial education concepts early and build on that foundation throughout the K-12 school years. CFPB encourages states to make a stand-alone financial education course a graduation requirement for high school students.
Recommendation 2: Include personal financial management questions in standardized tests.
Recommendation 3: Provide opportunities throughout the K-12 years to practice money management through innovative, hands-on learning opportunities.
Recommendation 4: Create consistent opportunities and incentives for teachers to take financial education training with the express intention of teaching financial management to their students.
Recommendation 5: Encourage parents and guardians to discuss money management topics at home and provide them with the tools necessary to have money conversations with their children.
CFPB’s K-12 Policy Recommendations

10. Questions?
June 13, 2014