The Federal Government and Financial Capability Louisa Quittman

The Federal Government and Financial Capability Louisa Quittman, Director, Financial Education, U. S. Department of the Treasury Email: Louisa. Quittman@Treasury. gov DRAFT

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 DRAFT

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. My. Money. gov – Online resource housing financial education materials and tools for children, adults, and educators • FLEC Research and Data Clearinghouse DRAFT

My. Money. gov DRAFT

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 DRAFT

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 DRAFT

Financial Literacy and Education Commission FLEC Strategic Focus: Starting Early for Financial Success • Early Career and Planning for Retirement – Financial Education in the workplace – my. RA • 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/ DRAFT

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 – – Household Identification Financial and Legal Documentation Medical Information Household Contacts DRAFT

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 DRAFT

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 DRAFT

my. RA Addresses a Serious Gap in Retirement Savings The U. S. Department of the Treasury developed my. RASM (My Retirement Account) to help people start saving for retirement. • my. RA 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—my. RA investments will not go down in value and are backed by the U. S. Treasury. • Affordable—my. RA accounts have no start-up fees or maintenance costs for employees, and there are no costs to employers to offer the program. DRAFT

Join my. RA: Call to Action • Promote my. RA – Create a link on your website to www. my. RA. treasury. gov – Engage with my. RA on social media—Twitter, Facebook, Linked. In, You. Tube • Discuss my. RA – Distribute my. RA materials to your networks and clients – Inform employers in the private and non-profit sectors • Incorporate my. RA – Inform your regional staff, local partners, and state offices about my. RA. – Highlight my. RA in newsletters, events and other communications • Join my. RA – Contact the Treasury Department to become an Outreach Partner For more information, visit my. RA. treasury. gov DRAFT

More Information • http: //www. treasury. gov/resourcecenter/financial-education DRAFT