On December 23, the CFPB submitted its annual financial literacy report outlining its strategy to conduct financial education programs and maintain an Office of Financial Education. The report detailed the CFPB’s “evidence-based approach” toward improving consumer financial literacy, including the development and dissemination of resources such as “Ask CFPB,” which served 12.6 million visitors in 2024, and the implementation of the “Financial Well-being Scale,” now used by approximately 100 U.S. organizations and 18 countries to measure their population’s financial well-being. The CFPB highlighted its coordination with other government offices and the director’s role as vice chair of the Financial Literacy and Education Commission, which develops the National Strategy for Financial Literacy.
The CFPB emphasized the growing need for youth financial education, citing increased use of complex digital financial products by young people and the risks posed by limited financial experience. The report found that less than 30 percent of young people are financially literate, and that state-mandated financial education in high schools is associated with improved financial behaviors, including responsible borrowing and reduced use of payday loans. The CFPB identified four key strategies for supporting youth financial education: (i) providing ongoing opportunities to build money management skills; (ii) introducing key financial education concepts early and consistently; (iii) training K-12 educators to teach financial management to their students; and (iv) engaging families to discuss money management.
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