WASHINGTON–The Consumer Financial Protection Bureau has unveiled new resources for financial educators, including Building Blocks to Help Youth Achieve Financial Capability, a report that presents a new financial capability developmental model and makes recommendations for financial education.
Based on the developmental framework described in the report, the Bureau said it also released a personal finance pedagogy, a teaching tool to enhance personal financial education in schools.
“The first line of defense for consumers to protect themselves is the ability to make informed and responsible decisions, and financial education that starts in childhood is an essential first step,” said CFPB Director Richard Cordray in a statement. “Our Building Blocks report adds to our ongoing efforts to see that every young American can gain the knowledge, skills, and resources they need to build a healthy financial future.”
The CFPB said it created the model to help financial education policy and program leaders to more effectively deliver financial education opportunities to American youth. The report outlines the building blocks of financial capability, as well as strategies for supporting its development from early childhood through adolescence. According to the Bureau, financial capability is the capacity to manage financial resources effectively, understand and apply financial knowledge, and the ability to make a plan, stick to it and successfully complete financial tasks.
“People with financial capability are more likely to be able to meet current and ongoing financial obligations and feel more secure in their financial futures,” the CFPB said.
The Bureau’s report Building Blocks to Help Youth Achieve Financial Capability highlights key milestones from early childhood through young adulthood that support the development of adult financial capability, and makes recommendations on achieving it.
The report further outlines recommendations for ways to help youth learn the building blocks of financial capability, and provides real-life examples and strategies for putting these capabilities into action.
The Building Blocks to Help Youth Achieve Financial Capability report is available at: http://files.consumerfinance.gov/f/documents/092016_cfpb_BuildingBlocksReport_ModelAndRecommendations.pdf
The personal finance pedagogy teaching tool is available at: http://files.consumerfinance.gov/f/documents/092016_cfpb_YouthFinEdPedagogy.pdf