CFPB Chief Highlights Resources Dedicated to Financial Education
Consumer Financial Protection Bureau (CFPB) Director Kathy Kraninger on Wednesday said in remarks to the Exchequer Club that she wants to find ways to collaborate with financial institutions to help people strengthen their finances
In prepared remarks, she noted that the Bureau has devoted considerable resources to promoting financial literacy and made significant strides in consumer education. This includes an expansion of the CFPB’s Misadventures in Money Management, a financial tool for servicemembers, educating consumers on debt collection and informing consumers about ongoing financial scams. Kraninger also spoke about the Bureau’s efforts to highlight elder abuse, releasing an update to advisory language encouraging financial institutions to report suspected abuse.
“This reflects a focus on a consumer-centric definition of financial well-being that goes beyond cold statistics like income and credit score. It speaks to a person’s sense of financial security and financial freedom of choice in the present and the future,” Kraninger continued.
The Bureau expanded it’s spending on financial education by 76 percent during the 2018 calendar year, despite its overall budget falling seven percent, illustrating the value it places on ensuring consumers can manage their own financial lives.
AFSA President and CEO Bill Himpler attended the meeting and applauded Kraninger and the Bureau for their reinvigorated approach to consumer financial education. He also asked Kraninger to consider that consumer lenders also want to give consumers the support to save money. He noted that long term savings can often be effectively coupled with the appropriate use of the credit options offered by financial institutions to further enhance savings. Increases in credit score and the usage of credit for investments in education, homes and vehicles have a snowball effect on long term savings. Director Kraninger was receptive to this point and agreed to consider it as the Bureau’s financial education efforts continue.
The Bureau’s renewed emphasis on consumer education has been the emphasis of the AFSA Education Foundation for nearly 30 years. The MoneySKILL program has promoted the importance of financial education and literacy. The AFSAEF’s MoneySKILL® program educates students of all ages on the basic understanding of money-management fundamentals. The course is used by nearly one million students, teachers and parents across the nation, at no cost. You can learn more at afsaef.org.
July 19th, 2019
