Financial literacy plays an important role in helping to promote the financial health and stability of individuals and their families. Because of this, and because of the poor economy, the U.S. Government Accountability Office (GAO) conducted a study to see what financial literacy program were being offered through federal agencies.
"The federal government plays a wide-ranging role in promoting financial literacy. Efforts to improve financial literacy in the United States involve an array of public, nonprofit, and private participants, but among those participants, the federal government is distinctive for its size and reach and for the diversity of its components, which address a wide range of issues and populations," the GAO report said.
In a recent study, the GAO identified 16 significant financial literacy program or activities through 14 federal agencies, as well as four housing counseling programs among three federally supported entities in 2010. The Comptroller General has initiated a four-pronged strategy to promote financial literacy issues, including having the GAO continue evaluating federal efforts on that front, encouraging research on the various financial literacy initiatives to evaluate the relative effectiveness of different approaches and looking for opportunities to enhance financial literacy as an integral component of regular federal interactions with the public.
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The GAO also instituted a program to empower its own employees, which includes an internal website with information on personal financial matters and links to information on pay and benefits and referral services through its counseling services office and distinguished speaker series.
Having multiple federal agencies involved in financial literacy offers advantages as well as risks, the report found. Some agencies have long-standing expertise and experience addressing specific issue areas or populations, and providing information from multiple sources can increase consumer access and the likelihood of educating more people. However, the participation of multiple agencies also highlights the risk of inefficiency and the need for strong coordination of their activities.
GAO has found that the coordination and collaboration among federal agencies with regard to financial literacy has improved in recent years, in large part as a result of the Financial Literacy and Education Commission. At the same time, GAO has found instances of overlap, in which multiple agencies or programs, including the new Bureau of Consumer Financial Protection, share similar goals and activities, underscoring the need for careful monitoring of the bureau's efforts.
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