CBA Urges CFPB to Focus on Financial Education Programs

The Consumer Bankers Association (CBA) has called on the Consumer Financial Protection Bureau (CFPB) to place a stronger emphasis on financial education programs, with an emphasis on youth-based endeavors.

 

The trade group submitted its comments in response to the CFPB request request for information on its financial education programs. In a letter to the agency, CBA Associate General Counsel and Vice President David Pommerehn pointed out the traditional role that banks have played in financial education outreach, and he recommended the CFPB work in partnership with community-based organizations on this effort.

 

“These organizations provide a vital lifeline to many of U.S. consumers that would benefit from improved financial education,” Pommerehn wrote. “These groups are often trusted neighborhood organizations (i.e. churches, youth centers, etc.) that provide other valuable resources and relief such as food, child development and medical care.  These channels can be leveraged as conduits for financial education. Through these channels, financial education could be presented in layman’s terms through written communications that are short and to the point. The Bureau should develop literature that is relevant to the group being addressed and should explain key concepts in multiple ways that are likely to resonate with their intended audience.”

 

Pommerehn also suggested a teamwork between the CFPB and the Department of Education, with the goal of ensuring financial education is provided to tomorrow’s homeowners and business professionals.

 

“Incorporating financial education into the school curriculums in an on-going manner is a vital component to making our future generations financially literate,” Pommerehn continued. “We encourage the Bureau to focus more resources on schools and to help train and encourage teachers and parents to provide financial education for children and youth in order to equip the next generation with better knowledge and skills to make effective and responsible choices and decisions.”

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