Financial Literacy
The 14th Amendment of the Constitution of the United States provides, in part, that no State can "deny to any person within its jurisdiction the equal protection of the laws; nor shall any State deprive any person of life, liberty, or property..."
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Financial Literacy: What it is, and why it is so Important to Learn?
Do you understand and can you effectively use various financial skills, including personal financial management, budgeting, and investing? When you are financially literate, you have the essential foundation for a smart relationship with money. This can help start a lifelong journey of learning about the financial aspects of your life. The earlier you start to become financially literate, the better off you'll be because education is the key to a successful financial future.
“Broadly speaking, the benefit of financial literacy is that it empowers single mothers to make smarter decisions about their finances.”
Given the importance of finance in modern society, a lack of financial literacy can be very damaging to an individual’s long-term financial success. Thankfully, there are now more resources than ever for those wishing to educate themselves about financial topics. One such resource is the U.S. government-sponsored Financial Literacy and Education Commission, which offers a range of free learning opportunities. To learn more, click a resource below to start your journey to financial dominance.
YOUNG AMERICANS’ FINANCIAL LITERACY ACT (H.R. 3483). The Young Americans’ Financial Literacy Act (H.R. 3483) established a grant program in the Bureau of Consumer Financial Protection to fund the establishment of centers of excellence to support research, development and planning, implementation, and evaluation of effective programs in financial literacy education for young people and families ages 8 through 24 years old, and for other purposes.
Financial illiteracy in America continues to afflict a large portion of the population, particularly single mothers, which enables poverty and hampers prosperity. The lack of understanding basic finance principles leads to a perpetual cycle of poor financial decisions that restrict the social mobility of single mothers. Worse yet, financial illiteracy in one individual can lead to chronic poverty, where generations of a family are born in poverty.
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FINANCIAL LITERACY AND EDUCATION IMPROVEMENT (TITLE 20 - EDUCATION). The Financial Literacy and Education Commission (Title 20 - Education) was established under the Fair and Accurate Credit Transactions Act of 2003. The Commission was tasked to develop a national financial education web site (MyMoney.gov) and a national strategy on financial education. It is chaired by the Secretary of the Treasury and the vice chair is the Director of the Bureau of Consumer Financial Protection. The Commission is coordinated by the Department of the Treasury's Office of Consumer Policy.
The 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. The Commission coordinates the financial education efforts throughout the federal government, supports the promotion of financial literacy by the private sector while also encouraging the synchronization of efforts between the public and private sectors.
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MYMONEY.GOV. The MyMoney.gov website is a product of the Congressionally chartered Federal Financial Literacy and Education Commission (FLEC), which is made up of more than 24 Federal entities that are coordinating and collaborating to strengthen financial capability and increase access to financial services for all Americans. 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. The 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.
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CONSUMER FINANCIAL PROTECTION BUREAU (CFPB). The Consumer Financial Protection Bureau (CFPB) is an independent agency of the United States government responsible for consumer protection in the financial sector. CFPB's jurisdiction includes banks, credit unions, securities firms, payday lenders, mortgage-servicing operations, foreclosure relief services, debt collectors, and other financial companies operating in the United States. Since its founding, the CFPB has used technology tools to monitor how financial entities used social media and algorithms to target consumers.
The Bureau's priorities are mortgages, credit cards and student loans. The CFPB qualifies as a large independent agency that was designed to consolidate its employees and responsibilities from several other federal regulatory bodies, including the Federal Reserve, the Federal Trade Commission, the Federal Deposit Insurance Corporation, the National Credit Union Administration and even the Department of Housing and Urban Development. The bureau is an independent unit located inside and funded by the United States Federal Reserve, with interim affiliation with the U.S. Treasury Department..
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