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United States Government Accountability Office

Highlights of GAO-12-299SP, a summary of a 

GAO forum

February 2012 

HIGHLIGHTS OF A FORUM 

Financial Literacy: Strengthening Partnerships in 

Challenging Times

Why GAO Convened This 

Forum

Giving Americans the information they 

need to make effective financial 

decisions can be key to their wellbeing, and to the country’s economic 

health. The recent financial crisis—

during which many borrowers did not 

fully understand the risks associated 

with alternative mortgage products—

underscored the need to improve 

individuals’ financial literacy. Further, 

economic, demographic, and 

technological trends that have affected

the need for financial literacy continue, 

including the retirement of the baby 

boomers; the emergence of new 

financial products; and increasing 

costs for health care, higher education, 

and retirement. GAO convened a 

forum on October 20, 2011, to discuss 

(1) needs and priorities in improving 

financial literacy; (2) roles and

responsibilities of, and collaboration 

among, the government, nonprofit, and 

private sectors; (3) lessons learned 

from federal public health and nutrition 

literacy initiatives; and (4) GAO’s 

potential role in addressing financial 

literacy issues. 

Forum participants included 

representatives of federal, state, and 

local government organizations; 

academic experts; nonprofit 

practitioners; and representatives from 

the private sector. Comments 

expressed during the proceedings do 

not necessarily represent the views of 

all participants, the organizations they 

represent, or GAO. Participants were 

given the opportunity to comment on a 

draft of this summary. 

What Participants Said

Participants highlighted the following themes during the forum:

Focus on key populations. Participants discussed a number of areas that 

should be the most sustained focus of the nation’s financial literacy efforts in the 

coming years. Among other areas, efforts should target kindergarten through 

12th grade education; the workplace; the preretirement years; and special 

populations that may be particularly vulnerable, including low-income 

communities, the Hispanic community, and older Americans. Materials should be 

tailored as appropriate to meet these populations’ characteristics and 

circumstances.

Identify the most effective approaches and target efforts accordingly. More 

research is needed to identify the most effective approaches to improving 

financial knowledge and behavior. Targeting products appropriately, improving

delivery mechanisms, and leveraging technology are also important. 

Enhance the role of employers in improving their employees’ financial 

literacy. Employers have a key role to play in improving the financial literacy of 

their employees—for example, by encouraging them to save for emergencies 

and retirement. Further, financial literacy stakeholders need to do more to 

persuade employers of the business benefits of supporting healthy financial 

behaviors by employees.

Leverage the unique role of the federal government. The federal government 

has a unique role to play in promoting greater financial literacy. For example, the 

government can use its convening power and other tools to draw attention to the 

topic, take advantage of existing connections with certain populations, and make 

certain legal and regulatory changes to support greater financial literacy. 

Increase coordination and partnerships within and across levels of 

government and different sectors. Opportunities exist to further increase

coordination and partnerships among entities involved in financial literacy. Such 

efforts could help federal, state, and local government agencies; private sector 

entities; and nonprofits conserve scarce resources and reduce any duplication of 

effort. 

Identify lessons from other initiatives designed to improve consumer 

behaviors. Financial literacy practitioners can learn from efforts in other fields, 

such as health and nutrition, that have sought to educate consumers and 

influence their behavior. Participants discussed similar challenges, such as the 

difficulty of influencing people to change their behaviors and the possibility of 

developing a financial literacy equivalent of the Department of Agriculture’s 

“MyPlate” nutrition graphic.

Participants also discussed ideas for GAO and the Comptroller General to 

support or raise awareness about financial literacy or partner with others to do 

so. Among other ideas, they said that GAO could help in efforts to identify the 

best programs and methods for improving financial literacy, develop a financial 

literacy initiative for GAO employees that could serve as a potential model for 

other government agencies, and identify opportunities for federal agencies to 

leverage existing distribution channels to provide additional financial education.

View GAO-12-299SP. For more information, 

contact Alicia Puente Cackley at 

(202) 512-8678 or cackleya@gao.gov. 
Page i GAO-12-299SP Financial Literacy Forum

Letter 1 

Introduction 1

Financial Literacy: Highlights of the Forum Discussion 4

Appendix I Forum Agenda 16

Appendix II Forum Participants 17

Appendix III Related GAO Products 20

Contents

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Page 1 GAO-12-299SP Financial Literacy Forum 

United States Government Accountability Office

Washington, DC 20548 

Giving Americans the information they need to make effective financial 

decisions can be key to their well-being, as well as to the economic health 

of our nation. Much has been written and said about the ongoing need to 

improve our country’s level of financial literacy, which is sometimes also 

referred to as financial capability, and the recent financial crisis has 

underscorped that need.1

 For example, many borrowers did not fully 

understand the risks associated with alternative mortgage products that 

provided them with the ability to purchase homes that ultimately they 

could not afford. Further, several economic, demographic, and 

technological trends that affect the need for financial literacy continue, 

including the retirement of the baby boomers, the emergence of new 

financial products, and the increasing costs of health care, higher 

education, and retirement. Given the current economic environment, 

limited financial literacy can pose barriers to prosperity and higher 

standards of living. At the same time, however, increasing fiscal 

constraints at government agencies, particularly with regard to 

discretionary spending, may limit the resources available for financial 

literacy efforts. 

Much has changed since 2004, when GAO last held a forum on financial 

literacy.2

 The federal government’s multiagency Financial Literacy and 

Education Commission has now been in place for more than 7 years.3

 In 

2010, Congress created the Bureau of Consumer Financial Protection, 

adding a new player to the mix of federal agencies involved in financial 

literacy. The bureau will be responsible for, among other things, 

developing and implementing a strategy to improve consumers’ financial 

literacy and help them access financial counseling and information about 

 

1

The Financial Literacy and Education Commission has described “financial literacy” as 

the ability to make informed judgments and to take effective actions regarding current and 

future use and management of money. It has described “financial capability” as an 

individual’s capacity, based on knowledge, skills, and access, to manage financial 

resources effectively. 

2

GAO, Highlights of a GAO Forum: The Federal Government’s Role in Improving 

Financial Literacy, GAO-05-93SP (Washington, D.C.: Nov. 15, 2004). 

3

In 2003, Congress created the multiagency Financial Literacy and Education 

Commission, which was charged with, among other things, developing a national strategy 

to promote financial literacy and education, coordinating federal efforts, and identifying 

areas of overlap and duplication. Pub. L. No. 108-159, §§ 511-519 (codified at 20 U.S.C. 

§§ 9701–9708). 

 

Introduction 
Page 2 GAO-12-299SP Financial Literacy Forum

such topics as credit products, savings, educational expenses, and 

wealth building. And a wide variety of organizations continue to provide 

financial education for consumers, including nonprofit, community-based 

organizations; consumer advocacy organizations; financial services 

companies; trade associations; employers; and local, state, and federal 

government entities.

Notwithstanding these efforts, relatively few financial education programs 

have been evaluated for effectiveness, and even fewer have undergone 

assessments that actually measure the programs’ impact on participants’ 

behavior, rather than just their knowledge, understanding, or intent. 

Financial education is not the only approach to improving financial 

behavior. Alternative strategies and mechanisms, sometimes in 

conjunction with financial education, have also been successful. In 

particular, insights from behavioral economists that recognize the realities 

of human psychology have been used to design successful strategies to 

assist consumers in reaching financial goals without compromising their 

ability to choose among different products or approaches. For example, 

changing the default option for enrollment in retirement plans to 

automatically enroll new employees while giving them the opportunity to 

opt out has led to significant increases in plan participation at some 

organizations. The most effective approach to improving consumers’ 

financial decision making and behavior may be to use a variety of 

strategies, including financial education.

On October 20, 2011, GAO convened a select group of leaders and 

experts for a forum to discuss key issues related to financial literacy. 

These participants, which included representatives of federal, state, and 

local government agencies; academic experts; nonprofit practitioners; and 

representatives from the private sector, were selected to represent a 

range of viewpoints and draw from a variety of backgrounds. In the first 

session, they discussed current needs related to financial literacy and 

approaches to setting priorities to meet those needs. In the second 

session, participants discussed the appropriate roles for the array of 

government, nonprofit, and private sector entities involved in improving 

financial literacy and identified strategies for collaborating on and 

coordinating these efforts. The group then heard from federal public 

health and nutrition literacy experts and discussed lessons that could be 

learned from initiatives in these fields to inform their own strategies for 

influencing and improving consumer financial behaviors. The participants 

completed the day by discussing GAO’s potential role in addressing 

financial literacy. The forum was structured so that participants could 
Page 3 GAO-12-299SP Financial Literacy Forum

comment on issues openly, although not all participants commented on 

all topics.

We conducted our work from August 2011 to February 2012 in 

accordance with all sections of GAO’s Quality Assurance Framework that 

are relevant to our objectives. The framework requires that we plan and 

perform the engagement to obtain sufficient, appropriate evidence to 

meet our stated objectives and to discuss any limitations in our work. We 

believe that the information and data obtained, and the analysis 

conducted, provide a reasonable basis for any findings and conclusions.

Following is a summary of the discussion among the forum’s participants. 

The summary attempts to capture the ideas and themes that emerged at 

the forum and the collective discussion of participants at the sessions. 

The summary does not necessarily represent the views of the 

organizations whose representatives participated in the forum, including 

GAO. Participants were given the opportunity to comment on a draft of 

this summary. Appendix I provides the forum agenda and Appendix II 

provides a list of the participants. Appendix III lists GAO products on 

issues related to financial literacy. This report is available on our website 

at www.gao.gov. For additional information on our work related to 

financial literacy, please contact Alicia Puente Cackley, Director, Financial 

Markets and Community Investment, at (202) 512-8678 or 

cackleya@gao.gov. Key contributors to this report included Jason 

Bromberg (Assistant Director), Randy Fasnacht, Nina Horowitz, and 

Roberto Piñero. 

I wish to thank all of the participants of this forum for taking the time to 

share their knowledge and insights on improving financial literacy. I look 

forward to working with them and others on this important issue in the 

future.

Gene L. Dodaro

Comptroller General 

of the United States

February 9, 2012
Page 4 GAO-12-299SP Financial Literacy Forum

On October 20, 2011, GAO convened a forum to discuss the needs and 

priorities in improving financial literacy; roles and responsibilities of and 

collaboration among the government, nonprofit, and private sectors; 

lessons learned from federal public health and nutrition literacy initiatives; 

and GAO’s potential role in addressing financial literacy issues. The 

following summarizes the collective discussion of the forum participants. 

Forum participants were asked what areas should receive the most 

sustained focus of financial literacy efforts in the coming years. Several 

themes emerged from this conversation.

• Focus on different time periods throughout the life cycle, including 

kindergarten through 12th grade (K-12) education, college, and the 

preretirement years. While no clear consensus emerged on a single 

area of focus, several participants emphasized improving financial 

literacy among the K-12 population. Financial literacy efforts among 

the K-12 population have the benefit of schools as an existing 

distribution system and reach students at an early point in their lives.

Other participants suggested focusing on assisting college students 

manage the financing of their education and accumulated debt. In 

addition, many participants said efforts should also focus on the 

workplace to encourage employers to help their employees plan and 

save for emergencies and their retirement.

• Emphasize special populations that may be particularly vulnerable, 

including low-income communities, the Hispanic community, and older 

Americans. One participant expressed the view that the focus should 

be on the least advantaged among us, in part because the impact of 

their financial decisions on their lives can be much greater than it is 

for those with more financial resources. For example, a person whose 

car breaks down but who lacks sufficient savings for repairs could 

lose a job as a result. Another participant noted that Hispanics 

disproportionately do not participate in employer-sponsored retirement 

plans, and several agreed about the need to target initiatives to this 

population to prepare them for retirement. Some participants also 

discussed the vulnerability of older Americans, with one noting their 

potentially increased susceptibility to fraud, and another explaining 

that it can be much harder to recover from financial difficulties later in 

life.

• Enhance and publicize the importance of basic financial skills and 

provide more teacher training to support such efforts. Several 

participants mentioned the need to focus on the importance of having 

Financial Literacy: 

Highlights of the 

Forum Discussion

Financial Literacy Efforts 

Should Focus on Key 

Populations and Skills
Page 5 GAO-12-299SP Financial Literacy Forum

emergency savings. One participant noted that to effectively teach 

basic financial literacy there is a need for teachers who are willing and 

able to teach the subject, yet many teachers lack confidence in their 

knowledge of the subject matter. Also, some participants said an area 

of priority should be to create a national media campaign about the 

importance of financial literacy or to take other steps to raise public 

awareness about the issue.

One clear theme that emerged from the forum was the need to identify 

the most effective approaches to improving financial literacy and 

capability. Participants also highlighted the importance of targeting the 

right populations, tailoring financial literacy efforts to these populations, 

improving delivery mechanisms, and leveraging technology.

• Conduct more research on the effectiveness of different approaches 

to improving financial literacy. One participant noted that the increase 

in high-quality research on this topic in recent years was a positive 

development. Others noted that the Social Security Administration’s 

recent funding cuts for financial literacy research should be 

reconsidered. One participant suggested that government, nonprofit, 

and for-profit entities could develop a shared research agenda that 

could allow them to share resources.4

• Focus on solutions that change behavior rather than just increase 

knowledge. One participant said that financial literacy programs 

should refocus from simply increasing knowledge to trying to change 

behavior. Understanding what behavioral changes result from 

effective programs and how these changes differ across age, gender, 

and ethnic groups is important. Several participants noted that 

automatically enrolling employees in retirement savings plans could 

be among the most effective tools to prepare people for retirement.

But one participant noted that this approach, however successful, 

needs to be considered carefully in the context of other financial 

obligations such as managing debt or goals that could be hindered by 

 

4

The Financial Literacy and Education Commission’s 2011 National Strategy set as a goal 

to “identify, enhance, and share effective practices,” including encouraging research on 

effective strategies for affecting consumer behavior, establishing a research 

clearinghouse, and supporting program evaluation efforts. In October 2008, the 

Departments of the Treasury and Agriculture convened a National Research Symposium 

on Financial Literacy and Education that sought to identify gaps in the research and 

develop research priorities.

Identifying the Most 

Effective Approaches and 

Targeting Efforts 

Accordingly Is Key
Page 6 GAO-12-299SP Financial Literacy Forum

automatic deductions for retirement, such as saving for emergencies 

or college tuition.

• Better tailor products to specific audiences. According to one 

participant, financial literacy practitioners have spent a lot of time 

developing educational materials, but not enough time targeting the 

people who need more information and matching them up with the 

appropriate resources. Several participants noted the benefits of 

integrating financial literacy efforts into existing social service delivery 

mechanisms, including by using technology more effectively. Some 

participants cited the need to better understand the most effective 

approaches to tailoring products for targeted populations. These 

included whether a trusted resource was delivering the message;

whether certain delivery methods such as individual counseling 

versus classroom training were more effective; and whether key life 

events, such as the purchase of a home, would be most effective for 

timing the targeting of different methods.

One of the themes that emerged during the forum was that employers 

have a key role to play in improving the financial capability of their 

employees. Participants noted, for example, that employers could 

encourage their employees to save for emergency purposes and 

retirement. They also discussed the need to create incentives for 

employers to support healthy financial behavior by employees. GAO was 

also encouraged to consider taking additional steps to enhance the 

financial literacy of its own employees and thus serve as a model for 

other federal agencies.

• Highlight the role of employers in improving the financial capability of 

their employees. Several forum participants discussed how employers 

were well positioned to take an active role in improving their 

employees’ financial capability. For example, employees spend a 

significant amount of time in the workplace, making it a natural place 

for learning. For instance, they can participate in informative sessions 

such as “lunch-and-learns” and receive information via company 

Intranet sites. Participants discussed the fact that many workers do 

not currently take advantage of employer-sponsored retirement plans 

because they either do not earn enough to contribute or they need 

more financial education to understand the benefits of doing so. They 

proposed actions that employers could take to support greater 

savings by their employees—for example, by actively encouraging 

participation in employer-sponsored retirement plans and providing 

information on alternatives for employees who may not qualify for an 

Employers Can Play an 

Enhanced Role in 

Improving the Financial 

Capability of Their 

Employees
Page 7 GAO-12-299SP Financial Literacy Forum

employer-based plan, such as part-time staff. Employers could also 

take steps to facilitate emergency savings for their employees, 

especially those with lower incomes—for example, by promoting the 

automatic transfer of a portion of pay into a dedicated savings 

account. 

• Persuade employers of the benefits of financially literate employees. 

Two participants said that the business case for employer-provided 

financial literacy recognizes that stress caused by financial issues can 

reduce productivity and may increase absenteeism and health care 

costs for employers. Employers thus have an incentive to take an 

interest in their employees’ financial health, just as they do in their 

employees’ physical health through employer-provided health 

insurance. One participant spoke about a hospital that set up a 

financial literacy program for its employees to teach them how to buy 

a home in the local area, and thus benefit from having its workers live 

nearby. But several participants agreed that employers may need 

better incentives to take such steps—for example, the government 

could offer tax incentives for providing financial education to workers 

or could recognize and honor employers that do exemplary work in 

financial literacy.

• Establish financial literacy initiatives for government employees.

Several participants said that federal agencies should consider 

establishing financial literacy programs, or enhancing existing ones, 

for their own employees, as the federal government would serve as a 

good testing ground and model for financial literacy initiatives 

undertaken by other employers. GAO was encouraged to “teach by 

example”—that is, to establish a financial literacy program for its own 

employees that could be used as a model for other federal agencies.

Many forum participants said that the federal government had a unique 

role to play in promoting greater financial capability. Among other things, 

the government can make use of its “bully pulpit” and convening power, 

take advantage of existing delivery mechanisms, and support financial 

capability efforts through funding, standard setting, and statutory and 

regulatory changes.

• Use the “bully pulpit” to draw attention to the importance of promoting 

greater financial capability. Many participants agreed on the 

importance of having the federal government use its unique position 

to raise awareness of the need for greater financial literacy and 

capability. They said the government could enhance ongoing efforts to 

The Federal Government 

Can Leverage Its Unique 

Role to Promote Financial 

Literacy
Page 8 GAO-12-299SP Financial Literacy Forum

bring visibility to the issue of financial capability and to make it a 

national priority. Further, they believed encouraging greater financial 

literacy and capability is an issue that is likely to find support across 

the political spectrum. Some participants also noted the benefits of 

having high-level support from the White House and highlighted the 

President’s Advisory Council on Financial Capability. Others noted 

that First Ladies have often been effective in drawing attention to 

important issues, such as childhood obesity, drug abuse, and literacy.

• Leverage the government’s convening power. Participants highlighted 

the federal government’s ability to convene the numerous agencies 

and entities involved in financial literacy, noting that the government 

has a powerful ability to bring people together. When a federal agency 

convenes state, local, private, and nonprofit organizations, 

participation is likely to be high because those organizations want to 

be associated with a federal effort. For example, one participant noted 

that private sector organizations were more likely to want to help with 

financial literacy efforts if they were asked by the President’s Advisory 

Council on Financial Capability. This ability to convene the key 

players in the field can also help the government facilitate setting 

shared priorities for research. It can also facilitate the sharing of 

information and best practices on financial literacy among many 

players.

• Take advantage of existing points of contact to deliver financial 

literacy-focused messages. Participants suggested leveraging existing 

distribution channels and points of contact between the government 

and citizens to distribute messages about financial literacy. For 

example, some participants noted that efforts could be made to 

deliver additional financial literacy messages through communications 

from the Social Security Administration, Internal Revenue Service, 

and Centers for Medicare and Medicaid Services that many American 

citizens already receive. One important benefit of this approach is that 

it would entail minimal extra costs to the government. One participant 

expressed regret at the decision to eliminate the Social Security 

statement on an annual basis, which he said would have significant 

negative consequences for financial literacy over the long term.5

 

5

The Social Security Administration announced in March of 2011 that as a result of budget 

cuts it was suspending the provision of annual or other Social Security benefit estimates 

by mail. 
Page 9 GAO-12-299SP Financial Literacy Forum

• Conduct or fund additional research and data collection to determine 

the effectiveness of financial literacy programs. A number of forum 

participants commented that the federal government should use its 

resources to conduct or fund additional research into program 

effectiveness. They pointed out that there are a variety of small 

programs at the local level, yet it is difficult to know which are most 

effective at serving their intended population. The federal government 

could help identify effectiveness, as suggested by one participant, by 

measuring the impact of programs or policy options for chosen goals, 

such as an increased savings rate. One participant noted that unlike 

other organizations, the federal government may be better positioned 

to collect data that could be useful in evaluating the effectiveness of 

financial literacy programs; some organizations will share data with 

the government that they may not share with other entities. The 

federal government also has a role in funding the training and 

research of scholars and practitioners in the financial literacy field, 

according to one participant, which could positively affect the field at 

relatively low cost.

• Create standards for financial literacy programs, curriculum content, 

and teacher training. There may be a role for the federal government 

in reviewing, streamlining, or setting standards on the many financial 

literacy curricula available, according to participants. Several voiced 

the need for broad-based standards, or a “gold standard,” for financial 

literacy programs and curricula and for more extensive and 

standardized teacher training. They noted that standardization could 

increase the impact and the scale of small programs that served only 

100 or 200 people. The standards could include key elements of a 

financial education program and core competencies of financial 

education.6

 

6

Federal agencies have already taken several steps to address standards and 

competencies. For example, in 2004, the Department of the Treasury’s Office of Financial 

Education and Financial Access published a list of the elements of a successful financial 

education program, and in August 2010, the Financial Literacy and Education Commission 

developed a set of “core competencies” that define what consumers should know to make 

informed decisions about their personal finances. The commission’s 2011 national 

strategy sets an objective to develop guidelines related to curriculum development, 

delivery methods, and other areas that could be used by financial education providers.

Participants also discussed the need for better teacher 

training—for example, one participant cited research showing that 

teachers were not comfortable with the financial literacy subject area, 

and another noted that some stakeholders may be looking to the 

federal government to set guidelines for teacher training.
Page 10 GAO-12-299SP Financial Literacy Forum

• Make legal and regulatory changes to encourage improved financial 

capability. Participants discussed opportunities for the federal 

government to review rules and regulations and to simplify and clarify 

financial literacy programs and products. Some noted that having to 

choose from a wide array of financial products—such as retirement 

accounts, custodian accounts, education savings accounts, and 529 

plans—can be overwhelming to consumers, who could benefit if 

policymakers rethought, or encouraged providers to rethink, the 

number and nature of such options, according to one participant.7

Another participant said that the way the Community Reinvestment 

Act is implemented should be reviewed to ensure that it provides an 

appropriate amount of support for bank programs that encourage 

savings.

Participants highlighted that a great deal of progress has been made in 

recent years in increasing coordination and partnerships among federal, 

state, and local government agencies; private sector entities; and 

nonprofits. They encouraged further coordination to help conserve scarce 

resources and reduce any duplication of effort.

• Increase coordination and partnership across federal, state, and local 

government entities. Many participants discussed ongoing efforts, and 

opportunities, for coordination among federal, state, and local 

governments.8

 For example, two state officials called for the 

Department of the Treasury’s help to create a more robust network to 

facilitate sharing among the state offices.9

 

7

A 529 plan, legally known as a “qualified tuition program,” is a tax-advantaged savings 

plan authorized by Section 529 of the Internal Revenue Code and designed to encourage 

saving for future college costs. 

One participant noted the 

potential coordinating role of the new Bureau of Consumer Financial 

Protection, while another suggested that the federal government 

leverage the innovation occurring at the local level by further 

recognizing and supporting key local efforts. An initiative to connect 

8

GAO has examined successful approaches to federal agency collaboration. See GAO, 

Results-Oriented Government: Practices That Can Help Enhance and Sustain 

Collaboration Among Federal Agencies, GAO-06-15 (Washington, D.C.: Oct. 21, 2005). 

9

In April 2007, the Financial Literacy and Education Commission created the National 

Financial Education Network to facilitate and advance financial education at the state and 

local levels. Among other things, the network has developed a web-based database to 

share information across entities and held national conferences. 

Opportunities Exist to 

Increase Coordination and 

Partnerships within and 

across Levels of 

Government and Different 

Sectors
Page 11 GAO-12-299SP Financial Literacy Forum

the unbanked population with financial services, which other cities 

have replicated in a low-cost way, was an example of such innovation 

cited by one participant. Another participant suggested creating 

financial capability councils at the state and city levels, similar to the 

President’s Council on Financial Capability at the federal level, which 

could serve as “boots on the ground” to improve efforts both nationally 

and locally. Policy changes, like using waivers to access federal 

funding, could help state and local governments more easily obtain 

federal funds for financial literacy programs, according to another 

participant. Two participants noted that more might be done to reduce 

unnecessary overlap or duplication among federal financial literacy 

efforts—for example, one participant questioned whether an online 

financial capability resource provided by the Bureau of the Public Debt 

was necessary given the existence of the Federal Deposit Insurance 

Corporation’s Money Smart, a comprehensive financial education 

curriculum.

• Continue to build partnerships among the governmental, private, and 

nonprofit sectors. Some participants noted that these different sectors 

would benefit from more of a shared agenda and resources, which 

would allow them to more effectively use scarce funds. One 

participant noted that nonprofit entities can lead the way in developing 

new effective approaches, and another added that nonprofits can test 

and prove new concepts and pilot initiatives that are too risky for the 

government or private sector. A different participant said that there 

needs to be a better infrastructure in place between private sector and 

nonprofit organizations to bring those innovative ideas from the test 

and concept phase to actual implementation on a large scale. The 

nonprofit sector can also benefit from leadership by government or the 

private sector to show the value of different approaches. For example, 

one participant noted that the nonprofit sector would be bolstered by 

government and private sector leadership showing the value of 

housing counseling, which some view as a component of financial 

literacy.

The federal government has experience trying to educate consumers and 

influence their behavior in areas other than financial matters. During an 

afternoon session of the forum, Dr. Linda Harris, the Acting Deputy 

Director of the Office of Disease Prevention and Health Promotion at the 

Department of Health and Human Services (HHS), gave a presentation 

on the department’s efforts to improve health outcomes. Dr. Rajen Anand, 

the Executive Director of the Center for Nutrition Policy and Promotion at 

Financial Literacy Efforts 

Can Be Informed by 

Lessons from Other Efforts 

to Improve Consumer 

Behaviors
Page 12 GAO-12-299SP Financial Literacy Forum

the Department of Agriculture, and his colleague John Webster, spoke 

about improving consumer choices about food and nutrition. 

Dr. Harris’s presentation described how health literacy—the degree to 

which individuals have the capacity to obtain, communicate, process, and 

understand basic health information and services to make appropriate 

health decisions—is critical to avoiding many negative health outcomes.

She described an HHS working group that developed a national action 

plan to improve health literacy.10

Dr. Anand’s presentation focused on efforts to foster positive dietary 

decision making and behavior change. He described a number of factors 

that affect consumer behavior around diet and nutrition, including 

individual factors such as age, gender, socioeconomic status, race and 

ethnicity; environmental factors such as what type of food is available at 

school, work, and home; and social and cultural factors such as belief 

systems about food, religious traditions, and body image. Dr. Anand also 

discussed his agency’s role in the formulation of the “MyPlate” food plate 

to replace the food pyramid.

Her agency has also worked to create 

an effective website to help consumers make informed choices. Dr. Harris 

also explained that the Plain Writing Act of 2010—requiring clear 

government communication that the public can understand and use—has 

been an important part of a strategy to improve health literacy and 

outcomes.

During a question-and-answer session following the presentation, 

participants discussed:

• Parallels between financial literacy and health and nutrition literacy.

Participants noted similarities between health and financial literacy 

efforts. Both efforts are challenged by how difficult it is to influence 

people to change their behaviors. Also, poor health literacy and 

financial literacy can both have significant negative consequences to 

individuals and families. Finally, both could benefit from a focus on 

prevention—that is, seeking to prevent poor health outcomes or 

financial problems in the first place.

 

10U.S. Department of Health and Human Services, Office of Disease Prevention and 

Health Promotion. National Action Plan to Improve Health Literacy (Washington, D.C.: 

2010).
Page 13 GAO-12-299SP Financial Literacy Forum

• Possible creation of something akin to MyPlate for financial literacy.

The Department of Agriculture’s MyPlate provides a visual 

representation of the nutritionally appropriate balance among food 

groups. One participant began a discussion about creating something 

similar to the food plate to emphasize certain key elements of financial 

literacy: earning, saving, investing, borrowing, spending, and 

protecting. Participants discussed the benefits of such an effort, such 

as creating a simple visual reference point for discussing financial 

literacy.

• Difficulties of measuring effectiveness. Dr. Harris and Dr. Anand 

discussed how research on the effectiveness of their programs has 

been limited but will hopefully increase over time. One participant 

discussed the National Health and Nutrition Examination Survey—a 

program of studies designed to assess the health and nutritional 

status of adults and children in the United States—and the potential 

benefit of such a survey on financial literacy.11

• Value of the web, social media, and other outreach efforts. Dr. Harris 

and Mr. Webster both discussed online tools their agencies created 

that allow people to enter their age and other information to get 

targeted information about health and nutrition. Mr. Webster also 

discussed how his agency has created a network of more than 4,000 

community partners, including churches and scout organizations to 

help get out the word about good nutrition.

Another participant 

noted that one difference between financial literacy and health and 

nutrition literacy is that the latter has a large number of researchers 

and an extensive and well-funded body of research and academic 

journals devoted to the topic.

• Importance of policy changes to supplement literacy efforts. One 

participant described how past campaigns to affect behavior have to a 

great extent been aided by adoption of policies that change incentives 

for behavior, such as laws banning smoking and requiring the use of 

seat belts. The participant also noted that there is little evidence on 

the effectiveness of information campaigns that do not include 

 

11Among the existing efforts that have sought to assess Americans’ financial literacy is the 

National Financial Capability Study conducted by the Investor Education Foundation of the 

Financial Industry Regulatory Authority, Inc. Financial Capability in the United States, 

Initial Report of Research Findings from the 2009 National Survey, A Component of the 

National Financial Capability Study (New York, N.Y.: Dec. 1, 2009).
Page 14 GAO-12-299SP Financial Literacy Forum

accompanying changes in incentives—for example, the impact of the 

dairy industry’s “Got Milk” campaign on milk consumption is unclear.

During the final hour of the forum, participants shared their views on how 

GAO or the Comptroller General might support or raise awareness about 

financial literacy, or partner with others to do so. Participants suggested 

that, as part of its traditional role in studying federal oversight of financial 

markets and products, GAO should conduct studies on a number of 

topics including emergency savings, financial planners, and retirement 

accounts. In addition, the participants suggested the following:

• GAO could facilitate or conduct research on effective programs. Many 

participants said that GAO might conduct research—or continue to 

summarize existing research—on effective approaches and delivery 

methods to improving financial literacy, and highlight particularly 

effective programs. Another participant said GAO could help improve 

the effectiveness of financial literacy efforts by identifying programs 

that may be duplicative. GAO could also use its ongoing studies to 

raise awareness of existing data sources and encourage agencies to 

share such resources. Finally, GAO could highlight best practices, 

standards, or metrics that could be adopted more broadly.

• GAO could establish a financial literacy initiative for its employees to 

serve as a model agency. Participants suggested that GAO could 

develop an employee financial literacy initiative that could be a model 

for other federal agencies. One participant described efforts in the 

private sector to create financial literacy curricula for their employees.

One focus of such an effort by GAO, said another participant, could 

be newer staff who may have considerable student loan debt to 

manage.

• GAO can help identify and encourage opportunities to provide 

financial education where the federal government is already 

interacting with individuals. Some participants suggested that as part 

of its ongoing oversight of federal agencies, GAO could help identify 

effective access points at which agencies already regularly interact 

with consumers. For example, GAO could review ways the federal 

government could better leverage the distribution of financial 

information already taking place at agencies such as the Internal 

Revenue Service, the Social Security Administration, and the 

Departments of Labor and Education.

GAO Can Play a Role in 

Improving Financial 

Literacy
Page 15 GAO-12-299SP Financial Literacy Forum

• GAO should continue to draw attention to the importance of financial 

literacy, including by convening experts. Many participants said that 

GAO should continue to use its unique position to draw attention to 

the issue of financial literacy and convene groups similar to the forum.

One participant noted that the field will benefit from the Comptroller 

General’s involvement in this topic, while another said it is useful to 

have a neutral third party such as GAO bring together financial 

literacy stakeholders to address the issues.
Page 16 GAO-12-299SP Financial Literacy Forum 

Financial Literacy: Strengthening Partnerships in Challenging Times

A Forum Convened by Comptroller General Gene L. Dodaro 

U.S. Government Accountability Office 

Thursday, October 20, 2011

Agenda 

8:30 a.m. Continental Breakfast McCarl Room, 7C21

 

9:00 a.m. Opening Session 

-Welcome 

-Personal introductions 

-Overview of agenda 

Staats Briefing Room, 7C13

Gene L. Dodaro

Comptroller General of the United States

 

9:20 a.m. Current and Future Needs, Priorities, 

and Challenges 

Moderator:

Barbara Bovbjerg

Managing Director

Education, Workforce, and Income Security, GAO

 

10:30 a.m. Break 

 

10:40 a.m. Roles, Coordination, and Collaboration Moderator:

Orice Williams Brown

Managing Director

Financial Markets and Community Investment, 

GAO

 

11:50 a.m. Break 

 

12:15 p.m. Working Lunch— 

Lessons from Efforts to Influence Other 

Consumer Behaviors 

Moderator:

Susan Offutt

Chief Economist, GAO

 

1:30 p.m. Break 

 

1:40 p.m. GAO’s Role Moderator:

Gene L. Dodaro

 

2:30 p.m. Wrap-up Gene L. Dodaro

 

2:45 p.m. Adjournment 

 

Appendix I: Forum Agenda 
Page 17 GAO-12-299SP Financial Literacy Forum

Rajen Anand Executive Director, Center for Nutrition Policy and Promotion 

Department of Agriculture

Theodore J. Beck President and CEO

National Endowment for Financial Education

Barbara Bovbjerg Managing Director, Education, Workforce, and Income Security 

Government Accountability Office

Orice Williams Brown Managing Director, Financial Markets and Community Investment 

Government Accountability Office

Judy J. Chapa Vice President of Community Services 

The Financial Services Roundtable

Gene L. Dodaro Comptroller General of the United States

Heidi Goldberg Program Director, Early Childhood and Family Economic Success,

 Institute for Youth, Education, and Families

National League of Cities

Linda Harris Acting Deputy Director, Office of Disease Prevention 

 and Health Promotion

Department of Health and Human Services

Gail Hillebrand Associate Director of Consumer Education 

 and Engagement 

Bureau of Consumer Financial Protection

Jeanne Hogarth Manager, Consumer and Community Affairs

Board of Governors of the Federal Reserve System

Susan C. Keating President and CEO

National Foundation for Credit Counseling

Laura Levine President and CEO

Jump$tart Coalition for Personal Financial Literacy

Annamaria Lusardi Professor of Accountancy and Economics

George Washington University School of Business

Appendix II: Forum Participants
Page 18 GAO-12-299SP Financial Literacy Forum

Cathleen Mahon Executive Director and Deputy Commissioner 

 for Financial Empowerment, Office of Financial Empowerment

New York City Department of Consumer Affairs

Dave Mancl Director, Office of Financial Literacy

State of Wisconsin

Brenda McDaniel Program Analyst, Financial Readiness Program, Office of Family Policy

Department of Defense

Brandee McHale Chief Operating Officer

Citi Foundation

Susan Offutt Chief Economist

Government Accountability Office

Gary John Previts Distinguished University Professor and Chair, Department 

 of Accountancy

Case Western Reserve University

Luke W. Reynolds Chief, Outreach and Program Development, Division of Depositor and 

 Consumer Protection

Federal Deposit Insurance Corporation

Mary Rosenkrans Director, Office of Financial Education, Department of Banking

State of Pennsylvania

Dallas Salisbury President and CEO

Employee Benefit Research Institute

Lori Schock Director, Office of Investor Education and Advocacy

Securities and Exchange Commission

Carrie Schwab-Pomerantz President

Charles Schwab Foundation

David A. Weaver Acting Associate Commissioner, Office of Retirement Policy

Social Security Administration
Page 19 GAO-12-299SP Financial Literacy Forum

John Webster Director of Public Affairs, Center for Nutrition Policy and Promotion

Department of Agriculture

Lauren E. Willis Professor of Law

Loyola Law School

Joshua Wright Acting Director, Office of Financial Education

 and Financial Access

Department of the Treasury
Page 20 GAO-12-299SP Financial Literacy Forum

Financial Education and Counseling Pilot Program. GAO-11-737R. 

Washington, D.C.: July 27, 2011.

Cost and Legal Authority for Selected Financial Literacy Programs and 

Activities. GAO-11-781R. Washington, D.C.: July 13, 2011.

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.: April 12, 2011.

Opportunities to Reduce Potential Duplication in Government Programs, 

Save Tax Dollars, and Enhance Revenue. GAO-11-318SP. Washington, 

D.C.: March 1, 2011.

Consumer Finance: Factors Affecting the Financial Literacy of Individuals 

with Limited English Proficiency. GAO-10-518. Washington, D.C.: May 

21, 2010.

(Spanish Language Summary: Finanzas del Consumidor: Factores que 

Afectan la Educacion Financiera de las Personas con Conocimientos

Limitados del Ingles. GAO-10-869, August 4, 2010.)

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.: 

April 29, 2009.

Financial Literacy and Education Commission: Further Progress Needed 

to Ensure an Effective National Strategy. GAO-07-777T. Washington, 

D.C.: April 30, 2007.

Increasing Financial Literacy in America. GAO-07-284CG. Washington, 

D.C.: December 11, 2006.

Financial Literacy and Education Commission: Further Progress Needed 

to Ensure an Effective National Strategy. GAO-07-100. Washington, D.C.: 

December 4, 2006.

Credit Reporting Literacy: Consumers Understood the Basics but Could 

Benefit from Targeted Educational Efforts. GAO-05-223. Washington, 

D.C.: March 16, 2005.

Appendix III: Related GAO Products
Page 21 GAO-12-299SP Financial Literacy Forum

Highlights of a GAO Forum: The Federal Government’s Role in Improving 

Financial Literacy. GAO-05-93SP. Washington, D.C.: November 15, 

2004.

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