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National Strategy for Financial Literacy 2011

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Financial Literacy and Education 

Commission Members

Board of Governors of the Federal Reserve System

Bureau of Consumer Financial Protection

Commodity Futures Trading Commission

Department of Agriculture

Department of Defense

Department of Education

Department of Health and Human Services

Department of Housing and Urban Development

Department of Labor

Department of the Treasury

Department of Veterans Affairs

Federal Deposit Insurance Corporation

Federal Trade Commission

General Services Administration

National Credit Union Administration

Office of the Comptroller of the Currency

Office of Thrift Supervision

Office of Personnel Management

Securities and Exchange Commission

Small Business Administration

Social Security Administration

White House Office of Public Engagement

For more information on the Financial Literacy and Education 

Commission, visit www.mymoney.gov. 
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Introduction

The recent economic crisis has highlighted how essential it is that 

individuals and families have the information, education, and tools that 

they need to make good financial decisions in an increasingly complex 

U.S. and global financial system. Indeed, as we have learned, the 

financial difficulties of individuals and families can dramatically affect 

the financial health of local communities and regional markets. The 

crisis has also illustrated that the financial well-being of individuals and 

families is fundamental to national financial stability, and that a lack 

of financial literacy is one barrier that can lower standards of living and 

limit prosperity. 

The Financial Literacy and Education Commission (FLEC) sets forth 

here a framework—Promoting Financial Success in the United States: 

National Strategy 2011 —to provide the foundation for an overarching 

financial literacy strategy. It also establishes concrete goals that the 

non-profit, government, and private sectors can and should work 

together to increase financial literacy and improve financial decision 

making by individual Americans and their families as they pursue 

personal financial objectives. In recognition of the many changes needed 

to move our nation forward in this regard, the focus in this strategic 

framework is on (1) the need for increased financial literacy and effective 

financial decision making and (2) the educational efforts required to 

achieve those worthy objectives. 

The framework identifies five action areas—policy, education, practice, 

research, and coordination. Not every stakeholder will engage in all five, 

but carrying out the national strategy will require that each find its own 

balanced blend to ensure effective participation. 

Congress established FLEC through passage of the Fair and Accurate 

Credit Transactions (FACT) Act of 2003. FLEC is comprised of 22 

federal entities and is chaired by the Treasury Department. One of 

FLEC’s primary responsibilities is to develop a national strategy to 

promote financial literacy and education. In 2006, FLEC developed its 

first national strategy, Taking Ownership of the Future: The National 
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Strategy for Financial Literacy, which reviewed the progress toward 

financial literacy at that time and proposed calls to action in four areas 

deemed crucial to the promotion of financial education:1 

 1. building public awareness of available resources;

 2. developing tailored, targeted materials and dissemination strategies;

 3. tapping into effective partnerships; and

 4. supporting research and evaluation of financial education programs. 

Development of the National Strategy 2011

In July 2009, the Treasury Department convened a special FLEC 

meeting to review the Commission’s approach to carrying out its purpose 

and role. As part of that process, FLEC members set up a working group 

to craft a new national strategy. Over the ensuing months, FLEC’s 

National Strategy Working Group (NSWG) undertook a comprehensive 

and inclusive process that included reviewing strategic documents from 

other nations and other agencies as well as reaching out for input to a 

wide range of stakeholders in the field of financial education. From this 

process, and building upon the 2006 strategy, the NSWG identified four 

goals for the National Strategy 2011:

1. increase awareness of and access to effective financial education;

2. determine and integrate core financial competencies;

3. improve financial education infrastructure; and

4. identify, enhance, and share effective practices.

As part of this inclusive process to develop the National Strategy 2011, 

the Treasury Department, on behalf of FLEC, published a request for 

1 The 2006 FLEC strategy can be found online at www.mymoney.gov. 
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comments in the Federal Register on September 3, 2010. There were 

69 unique responses to the Federal Register Notice, with 29 percent of 

responses coming from non-profits, 20 percent from private businesses, 

18 percent from trade associations, 15 percent from private citizens, 

and 12 percent from the public sector—mostly state-level official 

commenters. Officials from three foreign nations also responded. 

Comments showed significant support for the National Strategy 2011’s 

vision, mission, goals, and objectives: 89 percent of the respondents 

agreed with the vision, 87 percent agreed with the mission, 81 percent 

agreed with the goals, and 94 percent agreed with the objectives.2 The 

NSWG carefully considered all the comments, and made revisions to the 

National Strategy 2011 to enhance its clarity and usefulness.

Implementation of the National Strategy 2011

The purpose of the National Strategy 2011 is to create an overarching 

strategic framework that all organizations involved with personal finance 

education, research, practice, and policy will find useful to help guide 

their work over the next several years. The aim is for stakeholders across 

the country—within the federal government and beyond—to develop, 

implement and evaluate specific objectives that support and advance 

the elements of the national strategy as we work together to achieve our 

shared vision of financial well-being for all people in the United States. 

By design, the framework for the National Strategy 2011 represents a 

broad overview. Achieving the strategy’s mission requires that each 

organization, individually and collectively, implement effective tactics. 

FLEC suggests ways that organizations can implement the strategy. 

However, this is not the final implementation plan. FLEC will continue 

to work on recommendations for how FLEC, its members and other 

organizations can best incorporate the strategy into their activities and 

initiatives, and will release an implementation plan in 2011. 

2 These percentages refer to those respondents who answered the particular question.
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As a first step in the implementation process, FLEC recommends that 

all organizations involved with personal-finance education, research, 

practice, and policy should:

 • embrace the strategy mission,

 • distribute the strategy widely,

 • choose one or more of the goals and build relevant, measurable 

objectives,

 • seek opportunities to coordinate efforts with others, and

 • focus on evidence-based outcomes.

At the federal level, FLEC recommends that each of its members use the 

National Strategy 2011 to inform and complement their own efforts at 

promoting financial literacy and education. 

In addition, FLEC will take the following steps: 

 • ask each FLEC member to incorporate the mission, vision, and 

goals of the National Strategy 2011 into their respective programs 

and activities as appropriate.

 • incorporate the National Strategy 2011 goals and related objectives 

into the work of each FLEC working group so that FLEC can test 

approaches, provide best practices, and report on results.3

 • provide leadership in promoting the National Strategy 2011 goals 

and objectives that are national in scope.

 • coordinate with the President’s Advisory Council on Financial 

Capability on the level of progress in achieving the goals and 

objectives of the National Strategy 2011.

 • encourage the implementation of a pilot program of stakeholders 

to identify customized strategies that address local needs. 

 • coordinate with the newly formed Consumer Financial Protection 

Bureau on its efforts to implement the National Strategy 2011. 

3 In July 2009, FLEC established three staff-level working groups—on Core Competencies, 

Research and Evaluation, and Communication and Outreach—to support the key strategic areas it 

had identified. On September 30, 2010, FLEC established an additional staff-level working group 

on Financial Access.
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Vision

Sustained financial well-being

for U.S. individuals and families

Mission 

Set strategic direction for policy, 

education, practice, research, and 

coordination so that U.S. individuals and 

families make informed financial 

decisions

Increase 

Awareness of and 

Access to 

Effective Financial 

Education

Ensure individuals 

and families are 

aware of the 

importance of 

financial literacy 

and have access 

to financial 

education 

resources.

Promoting Financial Success in the United States:

National Strategy for Financial Literacy 2011

Goals

Identify, Enhance, 

and Share 

Effective Practices 

Support research 

and evaluation to 

identify effective 

programs and 

practices. 

Encourage the 

implementation 

and reproduction 

of 

evidence-based 

programs and 

practices for 

individuals and 

organizations.

Improve Financial 

Education 

Infrastructure

Develop 

guidelines on 

content, training, 

and delivery 

channels for 

financial literacy 

and education 

providers. 

Promote 

opportunities for 

partnerships and 

information 

sharing.

Determine and 

Integrate Core 

Financial 

Competencies

Determine the 

personal finance 

knowledge and 

skills that 

individuals and 

families need to 

employ at various 

life stages and for 

particular life 

events to make 

informed financial 

decisions. 

Integrate these 

competencies 

into effective 

resources and 

programs.

For more information about the Financial Literacy and Education Commission, visit www.mymoney.gov.

Diploma

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National Strategy for Financial Literacy 2011

Vision:

Sustained financial well-being for all individuals and families in the 

United States.

National Strategy 2011 establishes a long-term vision of financial wellbeing, financial stability, and financial security for the diverse U.S. 

populace. The National Strategy 2011 seeks to foster a culture in which 

households take periodic stock of their financial situations, individuals 

seek information and ask questions before entering into financial 

transactions, and everyone has the information and tools needed to help 

manage debt, save to meet their financial goals, and plan for secure 

financial futures. The subsequent mission, goals, and objectives of the 

National Strategy 2011 have been formulated to help move our nation 

toward this aspirational vision.

Mission:

Set strategic direction for policy, education, practice, research, and coordination 

so that U.S. individuals and families make informed financial decisions.

The mission of the National Strategy 2011 outlines the general areas of 

action that have been identified as critical in moving toward FLEC’s 

vision. These action areas—policy, education, practice, research, and 

coordination—are influenced by all participants in the field of financial 

education, from the federal government and national organizations, to 

state and regional organizations, to communities, and neighborhoods, 

all of which help ensure that diverse and underserved populations are 

reached. Not every organization will engage in all five of these action 

areas, but the National Strategy 2011 relies on each organization to find 

its own balanced blend of effective work. 
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Goals:

The National Strategy 2011 identifies four goals and related objectives 

to help move the nation, over the next several years, toward the vision 

and mission outlined above. Some of these goals seem best suited to 

the federal government; others might be better achieved by state or local 

governments, the private sector, or through collaborative efforts. Thus, 

the recommended goals serve not necessarily as a course of action for the 

federal government only, but rather for the field of financial education 

as a whole. Furthermore, the objectives provided for each goal are 

demonstrative and not exhaustive—organizations are encouraged to 

develop additional objectives in order to advance the identified goals. 

Goal 1: Increase Awareness of and Access to Effective Financial 

Education

Although financial education alone does not guarantee financial success, 

it is nevertheless important that all individuals and families, including 

those of diverse and underserved populations, are aware of and have 

access to reliable, clear, timely, relevant and effective financial information 

and educational resources. Likewise, it is important that individuals and 

families have access to effective financial education resources disseminated 

through many different channels, such as schools, employers, and financial 

education providers. A recent U.S. survey of financial capability4 found 

that many individuals both overestimate their financial knowledge and 

lack an understanding of key financial concepts.5 

4 Financial capability is an individual’s capacity, based on knowledge, skills, and access, to manage 

financial resources effectively. To develop this capacity, individuals must have appropriate access 

to and understanding of financial products, services, and concepts. Financial capability empowers 

individuals to make informed choices, avoid pitfalls, know where to go for help, and take other 

actions to improve their present and long-term financial well-being.

5 This survey was commissioned in 2009 by the FINRA Investor Education Foundation, in 

consultation with the U.S. Department of Treasury and the President’s Advisory Council on 

Financial Literacy, to study the financial capability of American adults. A copy of the survey 

findings can be found on www.finrafoundation.org/capability. 
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Objectives for Goal 1:

 • Encourage the dissemination and the development of financial 

education resources and programs that effectively deliver relevant 

information to diverse constituencies. Build on traditional practices, 

community strengths, and research on effective approaches and 

delivery methods.

 • Promote a national media campaign to improve financial literacy, 

including the use of venues and technologies to reach people where 

they reside.

 • Develop a coordinated support structure for distributing financial 

literacy and education information, including websites and other 

resources linking people to educational resources and services that 

are available on a local and national scope. 

 • Promote safe, reliable, and easy-to-use consumer resources and tools 

that can be used during different life stages and when experiencing 

key life events. 

 • Promote targeted messages about financial literacy in consumer and 

employee materials.

 • Provide unbiased and understandable financial education resources 

at financial decision points, such as during the home-buying and 

college-financing, and as part of the educational strategies shared 

in schools, colleges, and career and technical centers as well as 

workplaces.

Goal 2: Determine and Integrate Core Financial Competencies 

The development of core financial competencies will provide individuals 

with the information they need at critical ages and life stages so that 

they are empowered to make informed decisions. Additionally, core 

competencies can be integrated into targeted financial education 

programs and services.
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Objectives for Goal 2:

 • Develop a key set of core financial competencies, and build on them 

as appropriate.6

 • Promote the use of transparent, plain-language, and user-friendly 

forms and information to express core competency topics.

 • Encourage financial education providers to align materials with core 

competencies. 

Goal 3: Improve Financial Education Infrastructure 

To help ensure that all financial education is consistent, unbiased, and 

effective, practitioners should follow recommended financial literacy 

and education guidelines. Additionally, practitioners should foster 

partnerships and other collaborative opportunities to strengthen the 

effectiveness of financial education efforts.

Objectives for Goal 3:

 • Encourage the dissemination and the development of financial 

education resources and programs that deliver effectively relevant 

information to diverse constituencies. Build on traditional practices 

and community strengths. 

 • Develop guidelines related to research findings, core competencies, 

curriculum development, delivery methods, and program evaluation 

that could be used by financial education providers and counselors.

 • Establish clear financial literacy training goals and strategies that 

stakeholders can use to enhance the consistency and quality of 

program planning, delivery, and evaluation.

6 The FLEC’s Core Competency Working Group has developed a key set of core competencies. 

FLEC identified five core concept areas that define what consumers should know to make 

informed decisions about their personal finances. The “core competency” topics cover earning, 

spending, saving and investing, borrowing, and protecting against risk. FLEC also identified 

the knowledge and actions or behaviors that would be associated with each of the core 

competencies. On August 26, 2010, the Treasury Department—in its capacity as Chairperson 

of the FLEC—issued a notice and invited public comments on a proposed set of financial 

education core competencies. The FLEC is considering those public comments in finalizing the 

core competencies. When those are finalized, FLEC will conduct a public education campaign to 

promote the core competencies and disseminate core competency resources.
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 • Develop recommendations for professional development courses and 

incentives for financial education providers, identify best practices 

for organizational accreditation, and provide other support for 

financial education practitioners. 

 • Set up a network of financial education providers and counselors 

and provide opportunities for information-sharing.

 • Create strategies for partnerships, mentors or coaches, and other 

mechanisms for enhancing the delivery and effectiveness of financial 

education in schools, colleges, and career and technical centers as 

well as in the workplace. 

 • Strengthen connections among those working on financial 

education, financial access, and asset building strategies to improve 

effectiveness of each. 

 • Encourage the incorporation of strategies informed by behavioral 

economics and the psychology of decision-making.

Goal 4: Identify, Enhance, and Share Effective Practices

Increasing rigorous research and evaluation on financial literacy and 

education will lead to a better understanding of how to establish effective 

programs and practices. Implementing and evaluating promising programs 

and practices in order to learn how to reproduce them effectively also is 

critical, as is sharing information among researchers and practitioners. 

Supportive research will also ensure that the field tracks trends, issues, and 

financial literacy needs in order to remain current.

Objectives for Goal 4:

 • Encourage research on financial literacy and education strategies that 

affect consumer behavior to determine the role of financial education 

vis à vis other strategies for improving financial decision-making.

 • Establish a clearinghouse either within or otherwise in connection 

with existing Federal collections of evidence-based research and 

evaluation studies, current financial topics and trends of interest to 

consumers, innovative approaches, and best practices.
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 • Develop and disseminate tools and strategies to encourage and 

support program evaluation such as common evaluation metrics 

to measure key outcomes, behavioral change, and program 

effectiveness. 

 • Form a network for sharing research and best practices and updating 

the evidence base.

 • Develop approaches to periodically measure the financial knowledge 

and decision-making of individuals and families.

 • Identify customized programs that effectively address local and 

other needs, such as those that place emphasis on low- to moderateincome, minority, unbanked,7

 and underserved communities.

 • Build upon the research priorities identified at the FLEC National 

Research Symposium on Financial Literacy and Education in 

October 2008.8

7 A person who does not have a bank or credit union account.

8 For a summary of the symposium and the ten recommended priorities, go to www.mymoney.gov. 

Financial Literacy and Education Commission

www.mymoney.gov