Financial Literacy

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The CFPB released a report, “Tools for saving: Using prepaid accounts to set aside funds,” that presents the results of a research project involving a pilot program offering an incentive to prepaid card users to use a savings feature.

In December 2014, as part of its Project Catalyst, the CFPB’s initiative for facilitating innovation in consumer-friendly financial products and services, the CFPB announced a new research pilot program using insights from behavioral economics and an American Express pilot program to evaluate the effectiveness of certain practices to encourage prepaid card users to develop regular saving behavior.… Continue Reading

The CFPB has issued a report that describes a new “developmentally informed, skills-based model” for helping youth achieve financial capability.  Entitled “Building blocks to help youth achieve financial capability,” the report highlights key milestones from early childhood through young adulthood that support the development of adult financial capability, and makes recommendations “for delivering evidence-based, age-appropriate, and developmentally appropriate financial education policies and programs.” … Continue Reading

On September 15th, the FTC will hold a workshop to examine the testing and evaluation of disclosures that companies make to consumers about advertising claims, privacy practices, and other information.  The FTC’s workshop will explore how to test the effectiveness of these disclosures to ensure consumers notice them, understand them, and can use them in their decision-making. … Continue Reading

The CFPB has released an “issue brief” entitled “Financial Education Programs Serving Immigrant Populations.”  The report is intended “to raise visibility about the financial education challenges that many immigrants face.”

The report shares the results of a “field scan” in which the CFPB identified financial education programs and providers and spoke with experts in the field. … Continue Reading

The CFPB recently issued an advisory for older consumers about asset recovery companies that target older consumers who are past victims of fraud, such as bogus timeshare investments and in-home business opportunities.

The advisory describes a typical asset recovery scam as one in which the  asset recovery company contacts a defrauded older consumer claiming it can get the consumer’s money back for an upfront fee of several hundred to thousands of dollars. … Continue Reading

The CFPB has issued a guide that is intended to assist near-retirees with private sector payment plans in deciding whether to choose monthly payments or a lump-sum payout.  The guide includes a series of questions for consumers to consider before accepting a lump sum.  For consumers who plan to take a lump-sum payout, the guide also provides advice on detecting errors in the payment calculation, consideration of future needs, planning for tax consequences, and avoiding frauds and scams.… Continue Reading

Last week, the CFPB released “A guide to using the CFPB Financial Well-Being Scale.”  The guide builds on a report issued by the CFPB in January 2015, “Financial well-being: The goal of financial education,” in which it defined “financial well-being” as a state of being wherein people:

  • Feel in control of their day-to-day and month-to-month finances
  • Have capacity to absorb financial shock
  • Are on track in meeting financial goals
  • Have the financial freedom to make choices that allow them to enjoy life

The new guide contains a 10-question scale developed by the CFPB to measure “financial well-being” and instructions for scoring a consumer’s responses and interpreting scores. … Continue Reading

The CFPB has published a notice in the Federal Register indicating that it is planning to conduct a “Financial Well-Being National Survey.”

In the notice, the CFPB states that through its prior research, it has determined that improvement in consumer financial well-being is the ultimate goal of its financial literacy initiatives. … Continue Reading

Financial literacy was the focus of Director Cordray’s remarks last week at the American Bankers Association Annual Convention.  He identified three areas where the CFPB is focusing its efforts and where financial institutions can “band together with [the CFPB]” to advance such efforts.

The first area of focus is financial education in schools, with the goal of helping young people increase their financial capability. … Continue Reading

In conjunction with the retirement planning event that the CFPB is holding in Washington, D.C. today with the Social Security Administration, the CFPB has issued a report, “Issue Brief: Social Security claiming age and retirement security,” and unveiled a new online “Planning for Retirement” tool.

The report discusses the CFPB’s research regarding the important role Social Security plays as a source of income for current and future retirees and the potential for many Americans to face financial insecurity in their retirement years. … Continue Reading