With the extensive MyMoney.Gov we site under it's belt and a recently released blueprint to guide creation of a national infrastructure for financial education, the National Financial Literacy and Education Commission is getting high marks from consumer advocates.
The San Diego, CA-based Institute of Consumer Financial Education (ICFE) calls the "Taking Ownership of the Future: The National Strategy For Financial Literacy" a "firm, but flexible blueprint" to enhance financial education.
"The Strategy is firm enough to give general direction, but flexible enough to allow different players to chose their own roles in enhancing financial education. The Strategy is a blueprint that is intended for the private sector, individuals, and government. The private sector can use the Strategy's definition of the challenges and the best practices as tools to focus and design future efforts. Individuals can use some of the resources listed to better manage their financial affairs. Government policy makers can use the Strategy to frame their analyses on financial literacy matters," ICFE reports.
The 139-page report is the result of another provision of the Fair and Accurate Credit Transactions Act (FACT Act), enacted Dec. 4. 2003 to amend and strengthen the Fair Credit Reporting Act (FCRA).
Since its inception, the feds have been rolling out a host of regulations to better safeguard consumers' credit and financial information, as well as to give consumers greater access and control over that information. Among the existing and future provisions are free consumer access to credit and finance reports stockpiled by major credit agencies and smaller personal data collection firms; other fraud and identity theft protection provisions; more thorough procedures for disposing and monitoring the disposal of consumer credit and finance data; more accurate credit data reporting and collecting; and a more finely tuned consumer credit information dispute resolution process.
The "Taking Ownership" report is the work of the financial literacy commission, a group of 20 federal agencies created by the FACT Act to improve financial literacy and education nationwide.
The commission in 2004, rolled out MyMoney.Gov to put much of the federal government's financial information and education for consumers all in one place on the Internet.
Recognizing the importance of financial education -- financially savvy homeowners, for instance, are more likely not to lose their homes -- "Taking Ownership" lays the groundwork for the next step's three-pronged approach.
According to the plan, government regulates the financial marketplace and with the help of the private sector educates the public, and the public -- consumers -- are responsible for using the information and programs provided to improve and maintain their financial lives.
The report recommends a host of Calls to Action -- 26 in all -- efforts in the next steps toward developing the nation's financial education infrastructure.
For example, Chapter 2 "Homeownership" offers:
- Between the second quarter of 2006 and the second quarter of 2007, the U.S. Department of Housing and Urban Development will join with the Treasury Department to host a series of meetings highlighting the work of successful partnerships that have advanced home ownership.
- Lenders and other businesses should partner with grassroots organizations to provide financial education on buying a home and one-on-one counseling to demystify the home buying process.
Other chapters cover general savings, retirement savings, credit, consumer protection, taxpayer rights, investor protection, the "unbanked" (those who don't use traditional banking services), multilingual and multicultural populations and kindergarten to post secondary financial education, among other topics.
Along with the Calls to Action, each chapter offers an overview of the topic, discusses the challenges and issues and offers solutions in a who-what-where-when-and-how format to bring the message home.
"Ownership of one's home, secure health care and a sound retirement savings all contribute to an individual's sense of security and empowerment. The financial security that comes from owning something affords Americans the opportunity to plan for the years ahead, and when people feel they have a stake in the future, they build stronger families, stronger communities, and a stronger America," writes John W. Snow, Secretary of the Treasury.
"With the power of ownership goes the power of financial knowledge; the two are inextricably linked. Americans can only manage their money and other assets if they understand what they own, and they are better able to improve their own economic situations if they understand the basics of finance," he added.
This report is the latest in an ongoing RealtyTimes.com series about the Fair and Accurate Credit Transactions Act (FACT Act) since it was enacted Dec. 4. 2003 to amend and strengthen the Fair Credit Reporting Act (FCRA). Previous reports explaining other provisions of the law and its benefits for consumers are available from the list below.
