As part of a continuing initiative to promote financial literacy during all stages of life, the Consumer Financial Protection Bureau (CFPB) has published a resource guide to encourage development and implementation of financial education in public schools.
“We have watched too many Americans struggle to manage their affairs within our complex financial system,” CFPB Director Richard Cordray said. “Financial education in our schools is critical to the financial well-being of future generations. The resource guide will allow the CFPB to serve those policymakers looking to make progress on K-12 education.”
The 78-page guide, “Advancing K-12 Financial Education: A Guide for Policymakers,” was created after research showed that students who receive K-12 financial education are more likely to have significantly higher savings and net worth later in life compared with those who do not receive the same kind of training. Specifically, in high schools that include financial education requirements, students are more likely to have better credit scores and less likely to encounter financial distress as adults. Thus, the guide was designed to encourage policymakers in states to implement such programs.
The guide has three main sections: Laying the groundwork, building the initiative and extending the impact. The first section makes the case for financial education in schools and helps policymakers to set a strategy for initiatives, define the structure for such initiatives, foster partnerships and secure resources. “Building the Initiative” lays out the key components of financial education such as standards and requirements, classroom resources, teacher training and initiative evaluations. Finally, “Extending the Impact” consists of guidance on effectively carrying out and expanding financial education initiatives. Such guidance includes information on resources to support advancement and recognition of efforts and improving and scaling existing initiatives.
To develop this guide, the CFPB held a roundtable meeting of K-12 financial education policymakers and leaders, gained insight from experts in the field as well as researched and read up on financial literacy materials.
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