Compliance Center: CFPB Launches Effort to Advance Financial Education in Schools

The Consumer Financial Protection Bureau (CFPB) announced that it is launching a nationwide effort to advance financial education in schools. The Bureau is publishing “Advancing K-12 Financial Education: A Guide for Policymakers,” a resource guide that contains strategies for furthering the development and implementation of financial education in states.

Recent research suggests that students who receive K-12 financial education achieve significantly higher savings and net worth later in life. Additionally, when high schools include prudent financial education requirements, those students tend to have improved credit scores later in life and are less likely to be delinquent on financial obligations as adults. The Bureau believes youth should learn the basic skills that will help them make financial decisions as adults.

While the guide is targeted at policymakers in the states the guide was designed to benefit all members of the financial education community. The guide’s framework for advancing K-12 financial education has three main sections:

  • Laying the groundwork: This section is designed to help policymakers make the case for K-12 financial education, set a strategy for initiatives, define the structure for initiatives, foster partnerships, and secure resources.
  • Building the initiative: This section focuses on key components of K-12 financial education including standards and requirements, classroom resources, teacher training, and initiative evaluations.
  • Extending the impact: This section contains guidance on how to effectively carry out and expand K-12 financial education initiatives, including information on the resources to support the advancement and recognition of efforts, and improve and scale existing initiatives.

Each section contains guiding questions for policymakers to consider, case studies, and a resource directory with additional information. While the Bureau notes that each state’s unique circumstances may require different approaches, the Bureau hopes that policymakers find the guide helpful as a resource.

Compliance Question of the Week

Can someone with a power of attorney and a death certificate access the account of a deceased member?

No.  The power granted under a power of attorney document terminates when the person granting the power dies.  Once your member is deceased, power of attorney documents lose all power.

Resources

Legal Briefs

National Credit Union Administration (NCUA)

The NCUA announced that it will be hosting a financial literacy webinar on Wednesday, April 22. The NCUA is planning to discuss topics that will help credit unions promote financial literacy among their members. Credit unions can register for the webinar here.

Consumer Financial Protection Bureau (CFPB)

The CFPB announced that it is launching a nationwide effort to increase financial education in K-12 schools. The CFPB created a guide that will help lawmakers focus on three main areas: laying the groundwork, building the initiative, and extending the impact.

The CFPB announced that it will hold a Community Bank Advisory Council meeting in Washington, D.C. on Wednesday, April 22nd. The event will focus on credit scores and credit reporting and its impact on small institutions.

Federal Reserve Board (FRB)

The FRB released its minutes of the March 17th Federal Open Committee Meeting. The FRB also released the Summary of Economic Projections.

The FRB updated the Consumer Credit G.19 Report.

The FRB released a FAQ on its Regulatory Capital Rule. The FAQ includes the FRB’s definition of capital, different exposures, and credit valuation adjustments.

The FRB announced that it will be holding additional Economic Growth and Regulatory Paperwork Reduction Act (EGRPRA) Meetings.

Office of Foreign Assets Control (OFAC)

OFAC has updated the SDN list as of April 8, 2015. The last update prior to this was April 7, 2015.

Questions? Contact the Compliance Hotline: 1.800.546.4465, compliance@nwcua.org.

Posted in Compliance.