The Federal Government
and Financial Capability
Louisa Quittman,
Director, Financial Education,
U.S. Department of the Treasury
Email: Louisa.Quittman@Treasury.gov
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Why focus on financial capability?
• 1 in 5 U.S. students (age 15) are below the
baseline of financial knowledge proficiency per
2012 Programme for International Student
Assessment (PISA)
• Fewer than 40% of U.S. adults can demonstrate
higher levels of knowledge/application of basic
everyday financial concepts (National Financial
Capability Study)
• Emerging Research in Financial Education:
• Starting Early  Improved decision-making
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Financial Literacy and Education
Commission
• Comprised of 22 federal entities to coordinate and
enhance federal financial education activities
• Promoting Financial Success in the U.S.: National
Strategy for Financial Literacy (2011)
• www.MyMoney.gov – Online resource housing
financial education materials and tools for children,
adults, and educators
• FLEC Research and Data Clearinghouse
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MyMoney.gov
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Financial Literacy and Education
Commission
FLEC Strategic Focus: Starting Early for Financial
Success
• Children and Youth
• Integrating Financial Capability: A Toolkit for
Social Service Organizations
• Building Financial Capability in Youth
Employment Programs
• Encourage hands-on learning through school
savings programs
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Financial Literacy and Education
Commission
FLEC Strategic Focus: Starting Early for Financial
Success
• Post-Secondary Education
• College Savings and Financing Resources
• Financial Aid Toolkit
www.financialaidtoolkit.ed.gov/tk
• Student Income-Driven Repayment Pilot
• Testing Loan Counseling
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Financial Literacy and Education
Commission
FLEC Strategic Focus: Starting Early for Financial
Success
• Early Career and Planning for Retirement
– Financial Education in the workplace
– myRA
• Research and Evaluation
– FLEC Research and Data Clearinghouse
– Journal of Consumer Affairs: Special Issue March 2015
DRAFT
More on Youth Savings
• Financial Education and Account Access Among Elementary
Students
– Large effects of education on knowledge questions
– Moderate effects of in-school banking and education on attitudes
– Education and bank access boost bank account ownership by kids
– Effects persist
• Guidance to Encourage Financial Institutions’ Youth Savings
Programs
• Hands-On Learning to Build Financial Habits
– Federal Resources to Encourage School-Based and Youth Savings
Programs
– Research and Resources on Child Savings
available at www.treasury.gov/resource-center/
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Other FLEC Agency Resources
• CFTC Smart Check
- Interactive Video Quizzes
- Diagnostic Investment Tools and
Resources
- And more!
• FEMA Emergency Financial First Aid
Kit
• Collect and secure important
personal information in a central
place
–
–
–
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Household Identification
Financial and Legal Documentation
Medical Information
Household Contacts
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President’s Advisory Council on Financial
Capability for Young Americans
Issue Areas
•
•
•
•
Early Financial Education
for Children
Financial Decision-making
and Post-Secondary
Education
Innovation and
Technology
Cities and Communities
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Financial Empowerment
Innovation Fund
– 11 Research contracts awarded
– Project Focus Areas:
• Informed Decision-Making in Higher Education
• Promoting Innovations in Payments and Savings to
Promote Access
• Financial Capability and Education in the Classroom
– More info can be found online at:
http://www.treasury.gov/resourcecenter/financial-education/Pages/Finemp.aspx
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myRA Addresses a Serious Gap in
Retirement Savings
The U.S. Department of the Treasury developed myRASM (My
Retirement Account) to help people start saving for
retirement.
• myRA is a simple, safe, and affordable starter savings
account for people who do not have access or are ineligible
for a retirement savings plan at work.
• Simple—savers can contribute any amount with an
automatic payroll contribution by their employer.
• Safe—myRA investments will not go down in value and are
backed by the U.S. Treasury.
• Affordable—myRA accounts have no start-up fees or
maintenance costs for employees, and there are no costs to
employers to offer the program.
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Join myRA: Call to Action
• Promote myRA
– Create a link on your website to www.myRA.treasury.gov
– Engage with myRA on social media—Twitter, Facebook, LinkedIn, YouTube
• Discuss myRA
– Distribute myRA materials to your networks and clients
– Inform employers in the private and non-profit sectors
• Incorporate myRA
– Inform your regional staff, local partners, and state offices about myRA.
– Highlight myRA in newsletters, events and other communications
• Join myRA
– Contact the Treasury Department to become an Outreach Partner
For more information,
visit myRA.treasury.gov
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More Information
• http://www.treasury.gov/resourcecenter/financial-education
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