WASHINGTON (10/3/14)--At the President's Advisory Council on Financial Capability for Young Americans meeting Thursday, Consumer Financial Protection Bureau (CFPB) Director Richard Cordray spoke about the importance of financial education at an early age.
The bureau is "moving full steam ahead to develop ways to increase youth financial capability," Cordray said at the meeting, which Luke Martone, Credit Union National Association senior assistant general counsel for regulatory advocacy, attended on CUNA's behalf.
Over the summer, the CFPB coordinated with the Federal Deposit Insurance Corp. for an awareness campaign targeting parents and guardians.
"By directing parents to existing objective and reliable resources, we can help build their confidence in providing solid guidance to their children and also help them learn more about their own financial management," Cordray said.
Cordray went on to say that reaching parents is only "one of many channels" when it comes to reaching young people. The CFPB is also looking at ways to support teachers and financial education programs.
The bureau's "Ask CFPB" online portal features answers to more than 1,000 commonly asked consumer finance questions on topics such as spending, money management, savings, earnings and investing.
Treasury Secretary Jack Lew and Department of Education Secretary Arne Duncan also participated in Thursday's meeting. Though his remarks were limited, Duncan briefly commented on the Obama administration's efforts in the area of student loans.
Specifically, Duncan highlighted progress toward making college more affordable, including through Pay As You Earn, which is an income-based repayment option that allows certain borrowers of federal direct loans to cap their payments at 10% of their monthly incomes.
At the same meeting, the U.S. Department of the Treasury addressed several research projects funded through the Financial Empowerment Innovation Fund, which examines three main focus areas: financial capability, higher education decision-making and payments.
Some of these projects include: