WASHINGTON–NCUA Chairman Rodney Hood told the America Saves Summit here has seen first-hand how financial well-being can affect someone’s life.
Hood recalled for attendees at the Summit his days as a commercial banker and of the excitement of a family who improved their financial well-being through a combination of financial education and safe and affordable financial services.
Eventually, they were able to purchase their first home, and Hood said he still recalls seeing in “that family’s eyes the sense of freedom and empowerment that comes from being able to control their own financial future.”
Similarly, as NCUA chairman, he said he considers one of his paramount responsibilities creating an environment where more Americans can control their financial futures.
Other Points Made
Among some of the other points made by Hood:
- He pointed to the Federal Reserve’s Report on the Economic Well-Being of U.S. Households in 2018, which found many adults are not prepared to deal with unplanned expenses or brief financial disruptions. Among the findings was that 12% of respondents lack the ability to pay for any expense.
- He said there remains a sizeable number of people who are underserved, underbanked, or unbanked.
- Despite the complexity of the financial system, Hood said just 17 states require high school students to take a personal finance course before graduation. “The financial decisions these young people make will affect them for the rest of their lives. It is important that they begin on the right path,” he said.
- Hood said NCUA data show more than 50% of all federally insured credit unions offer financial education services, and that 365 credit unions have in-school branches at elementary, middle, and high schools across the country.
- Hood called for more Americans to take advantage of automatic savings programs.
- Hood said he considers “financial inclusion to be the civil rights issue of our time.”
CFPB Director’s Remarks
Separately, CFPB Director Kathy Kraninger also appeared at the event. Kraninger said the Bureau is focused on establishing partnerships and leveraging shared resources to educate consumers about the importance of savings. A report from the Bureau earlier this year found that many consumers don't have enough liquid savings to cover unexpected, emergency expenses and launched an initiative – "Start Small, Save Up" – to address the issue.