The CFPB unveiled its financial education strategy on Thursday, revealing a strategy of education initiatives, evidence-based research and consumer and stakeholder outreach, as part of the agency’s approach to improving consumer financial literacy.
Dodd-Frank mandated that the CFPB deliver a report to Congress on the agency’s activities and efforts to boost financial literacy within two years of its creation. The report released on Thursday covers July 2011 through June 15.
“The best and most immediate form of consumer protection is self-protection,” CFPB Director Richard Cordray said. “We want to see empowered consumers making responsible and informed financial decisions. Today’s report chronicles our many efforts already underway to achieve that goal through our financial education strategy.”
As part of its education initiative, the CFPB’s website features a number of tools to help consumers in their financial decision-making. The agency is also working with schools, faith communities, government agencies and other groups to develop education initiatives.
The CFPB also conducts research to determine which approaches to financial education are effective, as well as the best ways to measure effectiveness. Current projects focus on determining how to measure financial health and identifying the habits of financially capable consumers, evaluating the effectiveness of existing approaches to financial decision-making and developing new approaches to financial education.
Additionally, the CFPB meets with consumers and stakeholders, including non-profit groups, various levels of government and financial service providers to allow for the sharing of best practices and information.