The CFPB has released a report to share insights from existing research regarding the effectiveness of different types of financial education approaches. The Dodd-Frank Act mandates that the CFPB work to improve the financial literacy of American consumers. However, the CFPB has found that service providers, financial institutions, policy makers and funders who supply financial education materials to the public have not been able to draw solid conclusions about which strategies are most effective at improving the financial literacy of American consumers.
In order to support and guide efforts to improve the effectiveness and quality of financial education, the CFPB has announced it will work to provide stronger evidence of what works to improve financial decision making and financial well-being. The CFPB, has developed a research program that focuses on determining how to measure financial well-being, and identifying the knowledge, skills, and habits associated with financially capable consumers; evaluating the effectiveness of existing approaches to improving financial decision making and outcomes; and developing and evaluating new approaches.