With the raising Interest in financial education because of the economic downturn felt across the world there has been an increase in financial awareness in addition to Federal and State programs designed to assist with providing education. On the Federal level Congress enacted the Dodd-Frank Wall Street Reform and Consumer Protection Act also called Dodd-Frank Act. Because of this Act that the Consumer Financial Protection Bureau was set up as the watch dog organization overseeing the execution of the Acts policies. Part of the Duty of the CFPB is to encourage financial education through what is called Consumer Engagement & Education classes. The CFPB works with these groups all around the nation spreading the great news of financial literacy.
Why Financial Literacy Strategy is significant
The President is Advisory Council defines financial literacy as the ability to utilize knowledge and skills to manage financial resources efficiently for a lifetime of financial well-being.
According to Ron Lewis; Financial literacy is a matter which should command our attention because most Americans are not satisfactorily organizing financing for their education, retirement and healthcare.
Certainly if we Inspect the statistics with respect to the fiscal well-being of people in this country we see some rather alarming numbers that appear to indicate a radical need for educational strategy across all age groups and sexes regarding financing.
For many years we have Looked to our education system to help provide a financial literacy plan for our youth. This system has not provided nor meets our expectations in this area and we have to devise a strategy to present this concept to all age groups in this country to help assure their financial future and well-being.
Community Participation in Financial Literacy Strategy
So as to educate People of the importance of this ability we have to have at a local level educational classes and programs which may be accessible by the public providing basic training that addresses the masses not just the wealthy.
Church’s and local Clubs are a terrific source outreach into the community that may have a significant effect. Additionally it is essential for small, medium and big company to support these organizations together with providing employee programs.
Kuran Malhotra Financial literacy Training cannot just benefit the individual but also the nation as a whole. The hard cold reality is that we have an economy that is fueled by consumer spending and debt. The key is to get a balance so you have a chance at financial success. A financial literacy plan is directly associated with that achievement.