FINANCIAL LITERACY

Overview of Federal 

Activities, Programs, and 

Challenges

Statement of Alicia Puente Cackley, Director

Financial Markets and Community Investment

Testimony 

Before the Subcommittee on Financial 

Institutions and Consumer Credit, 

House Committee on Financial 

Services

For Release on Delivery 

Expected at 10:00 a.m. ET

Wednesday, April 30, 2014

GAO-14-556T

United States Government Accountability Office
United States Government Accountability Office

Highlights of GAO-14-556T, a testimony 

before the Subcommittee on Financial 

Institutions and Consumer Credit, House 

Committee on Financial Services

April 30, 2014

FINANCIAL LITERACY 

Overview of Federal Activities, Progress, and 

Challenges

Why GAO Did This Study

Giving Americans the information they 

need to make effective financial 

decisions is key to their financial wellbeing. The federal government plays a 

role in promoting financial literacy, 

which encompasses financial 

education—the process by which 

individuals improve their knowledge 

and understanding of financial 

products, services, and concepts. The 

federal role evolved with the creation of 

the Commission in 2003 and CFPB in 

2010. 

This testimony provides an (1) 

overview of federal financial literacy 

activities and agency roles, and (2) 

update on the progress made in 

addressing GAO’s recommendations in 

this area. This testimony is largely 

based on and partially updates a July 

2012 report (GAO-12-588) and 

relevant portions of GAO’s annual 

duplication reports (GAO-11-318SP

and GAO-12-342SP). For those 

reports, GAO reviewed and analyzed 

relevant reports, plans, and websites 

related to federal financial literacy 

efforts, and interviewed staff of 17 

federal agencies and of nonprofit 

organizations. To update selected 

information, GAO spoke with staff and 

reviewed materials from CFPB and the 

Department of the Treasury.

What GAO Recommends

GAO makes no new recommendations 

in this testimony, but reiterates its July 

2012 recommendations for the 

Commission to identify options for 

consolidating federal financial literacy 

efforts and address the allocation of 

federal resources in its national 

strategy. The Commission agreed with 

these recommendations.

What GAO Found

In its July 2012 report, GAO identified 16 significant financial literacy programs or 

activities among 14 federal agencies in fiscal year 2010, and 4 housing 

counseling programs among 2 agencies and a federally chartered entity. As of 

April 2014, 3 of the financial literacy programs and 1 housing counseling program 

no longer existed or no longer received funding, and no new federal programs 

had been added, according to staff representing the Financial Literacy and 

Education Commission (Commission). The creation of the Bureau of Consumer 

Financial Protection (known as CFPB) in 2010 added a significant new player, 

with offices devoted to financial education broadly and to educating

servicemembers, older Americans, and students specifically. The multiagency 

Commission, created in 2003, coordinates among federal agencies and between 

federal agencies and state, local, nonprofit, and private entities. Commission 

responsibilities also include developing national strategies for improving financial 

literacy and proposing means of eliminating overlap and duplication among 

federal activities. Finally, since 2008 three Presidential advisory councils related 

to financial literacy have had charges that include fostering partnerships among 

private, nonprofit, and government entities.

GAO has observed improvements or successes in four areas—coordination, 

partnerships, delineating CFPB’s role, and evaluation tools—but significant work 

remains to be done in one major area—determining the most effective and 

efficient allocation of federal resources.

• Coordination. Coordination among federal agencies has improved in recent 

years, largely due to the role of the Commission. Recent efforts include a 

research clearinghouse and a coordinated initiative on youth education.

• Partnerships. The Commission has continued to build and promote

partnerships. Several initiatives have partnered with academics, nonprofits, 

and other entities. 

• Delineating CFPB’s role. To help avoid unnecessary overlap, CFPB has 

further delineated its role in financial literacy efforts, discussing respective 

roles with federal agencies that have overlapping responsibilities and signing 

agreements on cooperation and areas of focus.

• Evaluation tools. The Commission and CFPB have helped develop and 

disseminate evaluation tools to assess outcomes and effectiveness of 

financial literacy programs. CFPB also contracted with a company to develop 

metrics and outcome measures and with a nonprofit to evaluate and report on 

financial education programs and activities.

However, further progress is needed to help ensure effective allocation of federal 

financial literacy resources and avoid unneeded overlap. In 2012, GAO 

concluded the Commission was best placed to consider consolidating federal 

efforts, which could help ensure the most efficient and effective use of federal 

resources. The Commission’s national strategy could serve as a mechanism to 

identify those resources and how they might be allocated, but has not yet done 

so. Without recommendations on resource allocations, policymakers lack 

information to avoid overlap and help ensure the most efficient and effective use 

of federal funds.

View GAO-14-556T. For more information, 

contact Alicia Puente Cackley at (202) 512-

8678 or cackleya@gao.gov.
Page 1 GAO-14-556T 

Chairman Capito, Ranking Member Meeks, and Members of the 

Subcommittee:

I am pleased to be here today to discuss financial literacy and related 

federal programs as part of Financial Literacy Month 2014. Giving 

Americans the information they need to make effective financial decisions 

is key to their financial well-being. Moreover, financial markets function 

best when consumers understand how financial service providers and 

products work and how to choose among them. The federal government 

has played a key role in addressing financial literacy, and this role has 

evolved in recent years, particularly with the creation of the Financial 

Literacy and Education Commission (Commission), which coordinates 

federal efforts, in 2003 and the Bureau of Consumer Financial Protection 

(known as CFPB) in 2010.1

My testimony today is largely based on and partially updates a report we 

issued in July 2012 that examined federal financial literacy activities, 

including identifying agencies, programs, activities, and coordination.2 It 

also incorporates work we conducted in recent years as part of our overall 

efforts to address fragmentation, overlap, or duplication in the federal 

government.3

 1

The commission currently comprises 22 federal entities; its Chair is the Secretary of the 

Treasury and its Vice Chair, as established in the Dodd-Frank Wall Street Reform and 

Consumer Protection Act (Dodd-Frank Act), is the Director of CFPB. Pub. L. No. 111-203, 

§ 1013(d)(5), 124 Stat. 1376, 1971 (2010) (codified at 20 U.S.C. § 9702(c)(1)(C).

This testimony provides (1) a brief overview of federal 

financial literacy programs, activities, and agency roles; and (2) a 

progress update on recommendations we made in this area.

2

See GAO, Financial Literacy: Overlap of Programs Suggests There May Be 

Opportunities for Consolidation, GAO-12-588 (Washington, D.C.: July 23, 2012). This 

report addresses (1) what is known about the cost of federal financial literacy activities; (2) 

the extent and consequences of overlap and fragmentation among federal financial 

literacy activities; (3) what the federal government is doing to coordinate its financial 

literacy activities; and (4) what is known about the effectiveness of federal financial literacy 

activities. 

3

See GAO, 2012 Annual Report: Opportunities to Reduce Duplication, Overlap and 

Fragmentation, Achieve Savings, and Enhance Revenue, GAO-12-342SP (Washington, 

D.C.: Feb. 28, 2012); and Opportunities to Reduce Potential Duplication in Government 

Programs, Save Tax Dollars, and Enhance Revenue, GAO-11-318SP (Washington, D.C.: 

Mar. 1, 2011). See also GAO’s Action Tracker, a publicly accessible online website of the 

areas and actions presented in these reports, which provides progress updates and 

assessments of the actions we suggested for Congress and executive branch agencies. 
Page 2 GAO-14-556T 

To address the objectives of our 2012 report, we reviewed and analyzed 

relevant reports, surveys, agency strategic plans, performance and 

accountability reports, websites, budget justifications, performance data, 

and evaluations related to federal financial literacy efforts. We interviewed 

staff of 17 federal agencies and staff of nonprofit organizations. In 

addition, we collected cost information from congressional appropriations, 

agency budget justifications, and staff estimates. To update selected 

information for this testimony, we spoke with staff and reviewed related 

materials of CFPB and the Department of the Treasury (Treasury).

We conducted the work on which this testimony is based in accordance 

with generally accepted government auditing standards. Those standards 

require that we plan and perform the audit to obtain sufficient, appropriate 

evidence to provide a reasonable basis for our findings and conclusions 

based on our audit objectives. We believe that the evidence obtained 

provides a reasonable basis for our findings and conclusions based on 

our audit objectives. More details on our scope and methodology are 

provided in each of the related products.

Financial literacy, sometimes referred to as financial capability, has been 

defined as the ability to use knowledge and skills to manage financial 

resources effectively for a lifetime of financial well-being. Financial literacy 

encompasses financial education—the process by which individuals 

improve their knowledge and understanding of financial products, 

services, and concepts. However, to make sound financial decisions, 

individuals need to be equipped not only with a basic level of financial 

knowledge, but also with the skills to apply that knowledge to financial 

decision making and behaviors.

Efforts to improve financial literacy can take many forms. These can 

include one-on-one counseling; curricula taught in a classroom setting; 

workshops or information sessions; print materials, such as brochures 

and pamphlets; and mass media campaigns that can include 

advertisements in magazines and newspapers or on television, radio, or 

billboards. Many entities use the Internet to provide financial education, 

which can include information and training materials, practical tools such 

as budget worksheets and loan and retirement calculators, and interactive 

financial games.

Background
Page 3 GAO-14-556T 

In our 2012 report, we identified 16 significant financial literacy programs 

or activities administered by the federal government in fiscal year 2010.4

As shown in table 1, there were 16 programs or activities among 14 

federal agencies and 4 housing counseling programs (which can include 

elements of financial education) among 2 federal agencies and a federally 

chartered nonprofit corporation. The programs and activities covered a 

wide range of topics and target audiences and used a variety of delivery 

mechanisms. While we have not done a comprehensive update of this 

federal program summary since 2012, representatives of Treasury and 

CFPB—which represent the Chair and Vice Chair of the Commission, 

respectively—told us that as of April 2014, 3 of the 16 financial literacy 

programs and 1 of the 4 housing counseling programs either no longer 

existed or no longer received funding, and no new federal programs had 

been added since fiscal year 2010.5

 4

We defined “significant” as those financial literacy and education programs or activities 

that were relatively comprehensive in scope or scale and included financial literacy as a 

key objective rather than a tangential goal. See page 12 of GAO-12-588 for additional 

information about our criteria for significant programs or activities.

5

The discontinued programs are the Social Security Administration’s Financial Literacy 

Research Consortium, the Department of Education’s Excellence in Economic Education 

Program and Financial Education for College Access and Success Program, and 

Treasury’s Financial Education and Counseling Pilot Program.

Overview of Federal 

Programs or Activities 

on Financial Literacy 

and Agency Roles
Page 4 GAO-14-556T 

Table 1: Description and Target Audience for Significant Federal Financial Literacy and Housing Counseling Programs and 

Activities, Fiscal Year 2010

Financial Literacy

Agency Program or activity Description Target audience

Board of 

Governors

of the Federal 

Reserve 

System

Division of Consumer 

and Community Affairs 

and Office of Public 

Affairs

Up-to-date web resources on regulatory changes regarding 

financial products and services, calculators, and information and 

tools on terms and disclosures for credit card accounts, overdraft 

protection programs, gift cards, and credit scores. Website offers 

resources for teachers and students of various ages and 

knowledge levels through educational games, classroom lesson 

plans, online publications, and multimedia tools.

Adult consumers and 

students

Bureau of 

Consumer 

Financial 

Protection 

Office of Financial 

Education and other 

offices

The Offices of Financial Education, Servicemember Affairs, Fair 

Lending and Equal Opportunity, and Financial Protection for 

Older Americans develop and implement initiatives to educate 

and empower consumers in general and specific target groups to 

make informed financial decisions. 

Consumers, 

servicemembers and 

their families, and 

individuals who are 62 

or older

Department of 

Agriculture

Family and Consumer 

Economics programs

The National Institute of Food and Agriculture provides funding to 

land-grant colleges and universities and to state and county 

extension offices to support research and education, including 

outreach events related to personal financial topics.

Youth, rural families, 

elderly, and other 

financially vulnerable 

populations

Department of 

Defense

Personal Financial 

Management Program 

(located within Family 

Support Centers)

Personal financial managers on military installations provide 

financial education programs and counseling services designed 

to help servicemembers reach their financial goals. Services 

range from consultation on financial management, budgeting, 

and saving, to debt reduction strategies, consumer advocacy and 

complaint resolution, financial workshops, retirement planning, 

housing issues and referrals, and education programs for youth 

and teens. 

Servicemembers and 

their families

Department of 

Education

Excellence in Economic 

Education Program

Awarded competitive grant to an organization that conducted

activities, and made subgrants to other organizations, to improve 

the quality of student understanding of personal finance and 

economics.

Students in 

kindergarten through 

grade 12

Financial Education for 

College Access and 

Success Program

Supported state-led efforts to develop, implement, and evaluate 

personal finance instructional materials and teacher training 

intended to aid students in making financial aid decisions in 

relation to postsecondary education.

Students in middle and 

high-school—

generally, grades 6-12

Department of 

Health and 

Human 

Services

National Education and 

Resource Center on 

Women and Retirement 

Planning

Provides women access to a one-stop gateway on retirement, 

care giving, health, and planning for long-term care.

Low-income women, 

women of color, and 

women with limited 

English proficiency

Department of 

Labor

Saving Matters 

Retirement Savings 

Education Campaign

Workplace campaign to promote retirement savings and 

understanding of federal retirement law using interactive web 

tools, print publications, website, public service announcements, 

seminars, workshops, videos, and webcasts.

Employees,

employers, and small 

businesses

Wi$eUp Eight-module financial education curriculum targeting women. 

Topics include money basics, credit, saving and investing, 

insurance, retirement planning, and financial security. Offered 

online or in a classroom setting.

Generation X and Y 

women
Page 5 GAO-14-556T 

Financial Literacy

Agency Program or activity Description Target audience

Department of 

the Treasury

Office of Financial 

Education and Financial 

Access (now 

incorporated into the 

Office of Consumer 

Policy)

A variety of financial literacy activities and staff support for the 

Financial Literacy and Education Commission and MyMoney.gov 

(website on federal financial literacy resources).

All populations

Federal 

Deposit 

Insurance 

Corporation

Money Smart Financial 

Education Program

Eleven-module financial education curriculum for adults designed 

to enhance basic financial skills and create positive banking 

relationships, available in nine languages. Eight-module version 

is available for young adults. The curriculum is available in 

instructor-led, computer-based instruction, and podcast (Mp3) 

formats.

Low- to moderateincome adults outside 

the financial 

mainstream and youth 

ages 12-20

Federal Trade 

Commission

Division of Consumer 

and Business Education

Multimedia resources covering topics such as credit, credit 

repair, debt collection, job hunting, job scams, managing 

mortgage payments, avoiding foreclosure rescue scams, and 

identity theft.

Consumers

Office of the 

Comptroller of 

the Currency

Consumer education 

activities

Websites, consumer advisories, public service announcements, 

community outreach, and print and radio advertisements aimed 

at educating consumers about banking and other financial 

issues.

Consumers

Office of 

Personnel 

Management

Retirement Readiness 

NOW

Retirement education strategy designed to provide information 

that will help federal employees plan for retirement and calculate 

the investment needed to meet retirement goals. 

Federal employees

Securities and 

Exchange 

Commission

Office of Investor 

Education and Advocacy

Provides information to help individual investors evaluate current 

and potential investments, make informed decisions, and avoid 

fraud.

Investors

Social Security 

Administration

Financial Literacy 

Research Consortium

Supported 2-year cooperative agreements with Boston College, 

RAND Corporation, and the University of Wisconsin to develop 

innovative materials and programs to help Americans plan for a 

secure retirement. 

Adults preparing for 

retirement

Housing Counseling and Foreclosure Mitigation

Department of 

Housing and 

Urban 

Development

Housing Counseling 

Assistance Program

Certifies and oversees housing counseling providers. Provides 

competitive grants to approved housing counseling agencies that 

provide pre- and post-purchase counseling, assistance to 

renters, homeless populations, and those seeking to resolve 

mortgage delinquency. Counseling may take place in person, 

over the telephone, or with a self-study computer module or 

workbook. 

Low- to moderateincome families

Department of 

the Treasury

Financial Education and 

Counseling Pilot 

Program

Awarded competitive grants to organizations to provide financial 

education and counseling to prospective homebuyers.

Prospective 

homebuyers

NeighborWorks 

America

National Foreclosure 

Mitigation Counseling 

Program

Provides competitive grants to housing counseling agencies to 

provide one-on-one counseling services for foreclosure 

prevention.

Homeowners at risk of 

foreclosure

Other housing 

counseling activities

Provides expendable grants for which housing counseling is an 

eligible activity.

Current and 

prospective 

homeowners
Page 6 GAO-14-556T 

Source: GAO analysis based on information from federal agencies and interviews with agency staff.

Note: According to Treasury and CFPB representatives, as of April 2014, four of the programs listed 

in the table either no longer existed or no longer received funding—the Social Security 

Administration’s Financial Literacy Research Consortium, the Department of Education’s Excellence 

in Economic Education Program and Financial Education for College Access and Success Program, 

and Treasury’s Financial Education and Counseling Pilot Program.

CFPB, which became operational in 2011, has a primary role in 

addressing financial literacy.6

In addition to specific programs and activities directed at consumers, 

federal agencies participate in coordination or umbrella efforts. For 

instance, the 22-member Commission coordinates among other federal 

agencies and between federal agencies and state, local, nonprofit, and 

private entities. Also among Commission charges are developing a 

national strategy for improving financial literacy and proposing means of 

eliminating overlap and duplication among federal financial literacy 

activities. Furthermore, since 2008, three Presidential advisory councils 

related to financial literacy have been tasked, in part, with creating 

partnerships among federal, state and local, nonprofit, and private 

entities. Most recently, the President’s Advisory Council on Financial 

For example, its Office of Financial 

Education provides opportunities for consumers to access financial 

counseling; information on understanding credit products, histories, and 

scores; information on savings and borrowing tools; and help in 

developing long-term savings strategies and wealth building. The Office 

of Servicemember Affairs helps educate servicemembers and their 

families to make better-informed decisions on consumer financial 

products and services, monitors complaints, and coordinates efforts 

among federal and state agencies regarding consumer protection 

measures. The Office of Financial Protection for Older Americans 

develops goals for programs that provide financial literacy and counseling 

to help seniors recognize the warning signs of unfair, deceptive, or 

abusive practices. CFPB’s Office of Fair Lending and Equal Opportunity 

plays a role in providing education on fair lending. Finally, CFPB created 

an Office for Students to address complaints and questions regarding 

student loans.

 6

CFPB was created by the Dodd-Frank Act, which specified the creation of the bureau’s 

Office of Financial Education and its role in promoting financial literacy. Pub. L. No. 111-

203, § 1013(d),124 Stat. 1376, 1970 (2010) (codified at 12 U.S.C. § 5493(d)).
Page 7 GAO-14-556T 

Capability for Young Americans was created by Executive Order in June 

2013.

7

Our reviews of federal financial literacy efforts in recent years have 

examined, among other things, issues of fragmentation and overlap; the 

effectiveness of programs; coordination across multiple agencies and 

between federal, state, local, and nonprofit entities; the potential 

consolidation of programs or activities; and the need to improve the 

Commission’s national strategy for financial literacy.8 The following 

summarizes progress in four areas in which we have observed 

improvements or successes—coordination, partnerships, CFPB’s role, 

and evaluation tools—and one major area in which we believe significant 

work remains to be done—determining the most effective and efficient 

allocation of federal resources.

Overall, coordination on financial literacy among federal agencies has 

improved in recent years. As noted earlier, multiple federal agencies have 

significant financial literacy initiatives. Because of the crosscutting nature 

of financial literacy, it would be difficult, if not impossible, for one agency 

alone to address the issue, but coordination among agencies is clearly 

essential. In our 2006 report, we noted that the Commission enhanced 

communication and collaboration among agencies involved by creating a 

single focal point for federal agencies to come together on the issue of 

financial literacy. In 2011, we suggested that the Commission enhance its 

 7

Exec. Order No. 13646, 78 Fed. Reg. 39159 (June 28, 2013).

8

For examples of GAO work on financial literacy, see Financial Literacy: Enhancing the 

Effectiveness of the Federal Government’s Role, GAO-12-636T (Washington, D.C.: Apr. 

26, 2012); Highlights of a Forum: Financial Literacy: Strengthening Partnerships in 

Challenging Times, GAO-12-299SP (Washington D.C.: Feb. 9, 2012); Financial Literacy: 

A Federal Certification Process for Providers Would Pose Challenges, GAO-11-614 

(Washington D.C.: June 28, 2011); Financial Literacy: The Federal Government’s Role in 

Empowering Americans to Make Sound Financial Choices, GAO-11-504T (Washington 

D.C.: Apr. 12, 2011); Financial Literacy and Education Commission: Progress Made in 

Fostering Partnerships, but National Strategy Remains Largely Descriptive Rather Than 

Strategic, GAO-09-638T (Washington, D.C: Apr. 29, 2009); Financial Literacy and 

Education Commission: Further Progress Needed to Ensure an Effective National 

Strategy, GAO-07-100 (Washington, D.C.: Dec. 4, 2006); and Highlights of a GAO Forum: 

The Federal Government’s Role in Improving Financial Literacy, GAO-05-93SP 

(Washington D.C.: Nov. 15, 2004). 

Federal Agencies 

Addressed Several 

GAO 

Recommendations, 

but More Progress 

Needed on 

Determining the Best 

Allocation of 

Resources

Coordination
Page 8 GAO-14-556T 

efforts to coordinate federal activities, such as by exploring further 

opportunities to strengthen its role as a central clearinghouse for federal 

financial literacy resources.9 The Commission has addressed this 

suggestion with a number of additional coordinating activities taken since 

2012. These have included an internal web portal to allow federal 

agencies involved in financial literacy efforts to share information and 

resources; publication of 2012 Research Priorities and Research 

Questions to help coordinate federal research efforts; a clearinghouse of 

federal research and data on financial literacy; an initiative for 

coordinating among federal agencies’ activities and resources to help 

parents and teachers prepare children and young adults for financial 

success; and support to the Office of Personnel Management in 

promoting agency strategic plans for employee retirement readiness.10

The Commission has continued to build on its progress in promoting 

partnerships among federal and nonfederal sectors. Given the wide array 

of state, local, nonprofit, and private organizations providing financial 

literacy programs, it is essential to leverage private-sector resources and 

coordinate federal activities with resources at the community level. We 

suggested in 2011 that the Commission build on progress it had made in 

promoting partnerships among the federal, state, local, nonprofit, and 

private sectors.11

 9

The Commission has taken actions that address this 

suggestion. Examples of recent Commission work with nonfederal sectors 

include the above-mentioned 2012 research report, which the 

Commission developed in partnership with academic researchers, 

nonprofit financial educators, and other nonfederal stakeholders, and an 

initiative to create a community of practice among educators and 

policymakers. The commission also continued to work in collaboration 

with the President’s Advisory Council on Financial Capability (which 

ended in 2013) and the new President’s Advisory Council on Financial 

Capability for Young Americans. The new council primarily consists of 

members from the private and nonprofit sectors, as did the former 

council.

GAO-11-318SP, pp. 151-154.

10Financial Literacy and Education Commission, 2012 Research Priorities and Research 

Questions: Financial Literacy and Education Commission Research and Evaluation 

Working Group (Washington, D.C.: May 2012). 

11GAO-11-318SP, pp. 151-154.

Partnerships
Page 9 GAO-14-556T 

CFPB has taken steps to delineate and distinguish its role in financial 

literacy from that of other federal agencies. In 2011 and 2012, we noted 

that some of CFPB’s financial literacy responsibilities appeared to overlap 

with those of other federal agencies, and we recommended that steps be 

taken to ensure a clear delineation of these agencies’ respective roles 

and responsibilities. In its response to a draft of the 2012 report, CFPB 

neither agreed nor disagreed with this recommendation.12 We believe this 

recommendation has been implemented. Since 2012, financial literacy 

staff from CFPB and Treasury have continued to hold regular meetings to 

discuss respective roles, and with the emergence of CFPB, Treasury 

reorganized the structure of its own financial education efforts, 

incorporating them into the broader Office of Consumer Policy. Similarly, 

as of March 2013, CFPB’s Office of Servicemember Affairs was meeting 

monthly with staff responsible for financial literacy at the Department of 

Defense, and the agencies developed two Joint Statements of Principles 

to help delineate their roles and responsibilities. Furthermore, CFPB’s 

Office of Financial Protection for Older Americans finalized a 

memorandum of understanding with the Federal Trade Commission in 

January 2012 to help cooperation on consumer education efforts and 

promote consistent messages. CFPB’s Office of Students developed a 

memorandum of understanding with the Department of Education 

designed, in part, to clarify respective areas of focus in providing 

education on student loans and financial aid.

We suggested in 2011 that the Commission and CFPB take steps to 

develop and disseminate a standard set of evaluation tools or 

benchmarks to help assess the outcomes and effectiveness of financial 

literacy programs.13

 12

This suggestion has been addressed. In September 

2012, CFPB signed a contract with the Corporation for Enterprise 

Development to develop a set of metrics and outcome measures for 

assessing the success of financial literacy programs. That work is 

ongoing. CFPB also contracted with The Urban Institute to evaluate 

financial education programs and increase understanding of which 

interventions can improve financial decision-making skills in consumers. 

An interim report was published in January 2014 and the final report is 

GAO-12-588.

13GAO-11-318SP, pp. 151-154.

Delineation of CFPB’s 

Role

Evaluation Tools
Page 10 GAO-14-556T 

expected around April 2015, according to CFPB representatives.14 In 

addition, the Commission’s 2012 study on research priorities sought ways 

of making the best use of limited dollars to address the most important 

questions facing the field of financial literacy.

We continue to believe that further progress is needed in one area—

helping to ensure that the most effective and efficient allocation of federal 

financial literacy resources occurs and avoids unneeded overlap. As 

noted earlier, federal financial literacy and housing counseling resources 

are spread across many agencies, the result of both legislation and 

programs evolving to address a variety of populations or topics. While our 

prior work uncovered no duplication, some agencies or programs do have 

overlapping goals and activities, raising the risk of inefficiency and 

underscoring the importance of coordination. The creation of CFPB 

added a new player to the mix. While progress has been made in 

coordinating with federal agencies that have overlapping financial literacy 

responsibilities, we noted in 2012 that the creation of CFPB signaled an 

opportunity for reconsidering more broadly how federal financial literacy 

efforts are organized. In particular, some consolidation of these efforts 

could help ensure the most efficient and effective use of federal 

resources. As a result, in July 2012 we recommended to Treasury and 

CFPB that the Commission identify for federal agencies and Congress 

options for consolidating federal financial literacy efforts into the agencies 

and activities that are best suited or most effective.15

The Commission’s national strategy could serve as one mechanism for 

determining how federal resources might best be allocated among 

programs and agencies, but it does not yet do so. The Commission 

issued its first national strategy in 2006. We reported that it was a useful 

first step, but largely descriptive rather than strategic, and only partially 

included certain key characteristics such as a description of resources 

Commenting on a 

draft of that report, Treasury agreed with the recommendation, and 

subsequently CFPB noted its agreement as well, but the recommendation 

has not been implemented.

 14Brett Theodos, Margaret Simms, Claudia Sharygin, et al., Rigorous Evaluation of 

Financial Capability Strategies: Why, When, and How (Washington, D.C.: January 2014); 

prepared by The Urban Institute for the Bureau of Consumer Financial Protection. 

15GAO-12-588

Allocation of Federal 

Resources
Page 11 GAO-14-556T 

required to implement the strategy.16 In December 2010, the Commission 

issued its second and most recent national strategy.17 While it discussed 

the consumer education resources the federal government makes 

available to consumers, it still did not address the level and type of 

resources needed to implement the strategy, or review the budgetary 

resources available for financial literacy efforts and how they might best 

be allocated. In July 2012, we recommended that the Commission revise 

its national strategy to incorporate clear recommendations on the 

allocation of federal financial literacy resources across programs and 

agencies.18

We acknowledge that the governance structure of the Commission 

presents challenges in addressing resource issues: it relies on the 

consensus of multiple agencies, has no independent budget, and no legal 

authority to compel members to act.

Treasury and CFPB agreed with this recommendation as 

well, but have not yet implemented it.

19

Chairman Capito, Ranking Member Meeks, and Members of the 

Subcommittee, this concludes my prepared statement. I would be happy 

to answer any questions that you may have at this time.

However, the Commission can 

identify resource needs, make recommendations, and provide guidance 

on how Congress or federal agencies might allocate scarce federal 

resources for maximum benefit. Without a clear description of resource 

needs, policymakers lack information to help direct the strategy’s 

implementation. And without recommendations on resource allocations, 

policymakers lack information to avoid overlap and help ensure the most 

efficient and effective use of federal funds.

If you or your staff have any questions about this testimony, please 

contact me at (202) 512-8678 or cackleya@gao.gov. Contact points for 

our Offices of Congressional Relations and Public Affairs may be found 

 16 Financial Literacy and Education Commission, Taking Ownership of the Future: The 

National Strategy for Financial Literacy (Washington, D.C.: April 2006) and GAO-07-100.

17Financial Literacy and Education Commission, Promoting Financial Success in the 

United States: National Strategy for Financial Literacy 2011 (Washington, D.C.: December 

2010).

18 GAO-12-588.

19GAO-09-638T. 

Contact and Staff 

Acknowledgments
Page 12 GAO-14-556T 

on the last page of this statement. GAO staff who made key contributions 

to this testimony include Jason Bromberg (Assistant Director); Bethany 

Benitez; Juliann Gorse; Barbara Roesmann; and Rhonda Rose.

(250784)
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