As our nation contends with rising costs, economic uncertainty and the increasing complexity of navigating today’s financial landscape, the urgency to provide Americans with trusted information and effective tools to achieve their financial well-being has never been more important. While the dynamics of well-being vary from person-to-person, knowledge and skills, as well as equitable access to financial services and opportunities, are necessary for all.
Few policymakers, researchers and knowledge influencers serving as catalysts within the Personal Finance Ecosystem are as impactful as the Consumer Financial Protection Bureau (CFPB). The CFPB, established by Congress in 2010, was designed to address the gaps between what the financial system provides and what the American public needs to succeed, particularly for those in marginalized communities. To achieve this, Congress mandated that the CFPB establish an Office of Financial Education and related departments to provide services to improve financial knowledge and access, including:
- Developing and implementing initiatives intended to educate and empower consumers to make better informed financial decisions, specifically focusing on underserved communities, military service members and aging Americans.
- Researching, analyzing and reporting on issues impacting consumer risk, products and services, and access to fair and affordable credit for traditionally underserved communities.
- A centralized system to receive, track and resolve complaints about consumer financial products and services.
The National Endowment for Financial Education (NEFE) affirms that the work of the CFPB is critical to building a society where everyone has the knowledge, confidence and opportunity to live their best financial life. Providing high-quality, effective financial education should not be hindered by partisan politics. Multiple presidential administrations and legislators from both parties have championed this work over the past 20 years. And the majority of Americans demand this instruction. More than four out of five U.S. adults agree that students should complete a semester- or year-long personal finance class for high school graduation, with 82% of U.S. adults wishing they were required to complete a personal finance class while in high school.
Recent actions taken against the CFPB, including lay-offs, work-stop orders, the continued removal of financial education content from public websites and the decision to forego funding, have directly and significantly impacted the Bureau's ability to carry out its statutorily mandated role. NEFE advocated for the administration and Congress to continue supporting the CFPB and equip it to provide the services required by law to benefit the American people. This backing should include continuing the Bureau’s efforts to enforce consumer protection rules that ensure the system is fair and equitable, as well as acknowledging its presence as a centralizing voice and expert in financial education. Our government leadership must ensure the Bureau's public materials, resources and tools are restored, maintained and continuously improved to support consumers in this rapidly evolving financial landscape. Allowing the work of the CFPB to disappear would represent an immense setback for consumers and the entire field of financial education.
Like many organizations, NEFE continues to gain more information and clarity about recent executive orders, prospective policy shifts, industry staffing transitions and other directives issued at the federal level. Our focus remains unwavering on the potential impact on our work directly and how these current, proposed and anticipated shifts affect our partners and other key stakeholders.
While we navigate the changes occurring at the federal level, NEFE's research, policy and equity initiatives remain unchanged. We reiterate our commitment to being a steadfast champion of effective financial education while advancing and supporting the work of those committed to helping everyone have the knowledge, confidence and opportunity to live their best financial life.