Public Policy Ideas to Improve Financial Education and Help Consumers Make Wise Financial Decisions

Although the number of financial education programs has grown over the last decade, few policies have been enacted to evaluate, support and expand effective financial education and increase financial capability. Although the government is not the only entity that can help improve financial education, there is an important role for the government sector to play that complements the efforts of the private sector, the nonprofit sector, and the efforts of individuals to take personal responsibility to access financial education. All levels of government can develop policies that help prepare youth and adults to make wise financial decisions. This report identifies some policy ideas that were generated by financial education experts—including practitioners, researchers, and financial institution representatives—during the New America Foundation’s Roundtable Meeting on March 21-22, 2007 in Washington, D.C.

The policy ideas included in this report can improve financial education and help consumers increase their financial capability. For the purposes of this report, financial capability can be defined as developing the skills and confidence to be aware of financial opportunities, to know where to go for help, to make informed choices, and to take effective action to improve financial well-being. Financial capability links education with appropriate products and services to make the education relevant.