Consumer Financial Protection Bureau Community and Technical College Leadership Fly-In Conference June 20, 2017 Janneke Ratcliffe Office of Financial Education Mike Pierce Office of Students
Disclaimer This presentation is being made by a Consumer Financial Protection Bureau representative on behalf of the Bureau. It does not constitute legal interpretation, guidance or advice of the Consumer Financial Protection Bureau. Any opinions or views stated by the presenter are the presenter s own and may not represent the Bureau s views. This document was used in support of a live discussion. As such, it does not necessarily express the entirety of that discussion nor the relative emphasis of topics therein. 2
What we ll cover Background on the CFPB Financial education tools and resources Students 3
Background on the CFPB
CFPB mission The CFPB helps consumer finance markets work by making rules more effective, by consistently and fairly enforcing those rules, and by empowering consumers to take more control over their economic lives. 5
Consumer Financial Protection Bureau Educate An informed consumer is the first line of defense against abusive practices. Enforce We supervise banks, credit unions, and other financial companies, and we enforce federal consumer financial laws. Study We gather and analyze available information to better understand consumers, financial services providers, and consumer financial markets. 6
How we answer questions and handle complaints (855) 411-2372 www.consumerfinance.gov/complaint 7
Meet Consumer Education & Engagement Financial Education Identify and promote effective financial education practices Consumer Engagement Create interactive, informative relationships with consumers Servicemembers Improve financial protection 2.2 million military personnel and 22.6 million veterans Older Americans Protect against financial abuse Students and Young Consumers Increase awareness of debt in college choice 50 million aged 62+ 22-28 million (age 16-26) Financial Empowerment Improve financial stability for lowincome and other economically vulnerable consumers 33% of Americans earn less than twice the poverty line 8
Financial education Effective financial education for more people through trusted sources.
Ask CFPB consumerfinance.gov/askcfpb 10
CFPB online tools on homeownership, paying for college, and planning for retirement consumerfinance.gov/ owning-a-home consumerfinance.gov/ paying-for-college consumerfinance.gov/ retirement 11
Getting an Auto Loan Tools and resources to help consumers to: Shop for an auto loan with as much care as you shop for the vehicle itself Look beyond the monthly payment and consider total cost to compare and negotiate for financing Know before you owe by spotting financing features that could lead to costly surprises later 12
Publications http://promotions.usa.gov/cfpbpubs.html The CFPB has free financial education materials in English and many other languages Available for bulk ordering 13
CFPB Community Financial Education Project consumerfinance.gov/library-resources Make libraries the go-to resource for financial education in every community Over 2,500 library branches nationwide are involved to date National Partners: Institute of Museum and Library Services American Library Association Public Library Association Reference and User Services Association FINRA Investor Education Foundation USDA Cooperative Extension Service Money Smart Week by the Federal Reserve Bank of Chicago Federal Deposit Insurance Corp. Federal Trade Commission 14
CFPB en Español consumerfinance.gov/es 15
Financial Well-Being The goal of financial education Consumer Financial Protection Bureau
What financial well-being is Financial well-being is a state of being wherein a person can fully meet current and ongoing financial obligations, can feel secure in their financial future, and is able to make choices that allow enjoyment of life. Elements of financial well-being: Having control over day-to-day, month-to-month finances Having the capability to absorb a financial shock Being on track to meet financial goals, and Having the financial freedom to make choices that allow one to enjoy life Consumer Financial Protection Bureau 17
Principles to support financial well-being 1. Know the individuals and families to be served Start with learning their challenges, goals, and situation and tailor support accordingly 2. Provide actionable, relevant and timely information 3. Improve key financial skills By supporting individuals in learning the how to of effective personal financial management applied to their own situation 4. Build on motivation Help people clarify motivations and connect action steps to desired outcomes Support development of financial self-efficacy 5. Make it easy to make good decisions and follow through Help create a context that makes it easier for people to achieve their goals. Consumer Financial Protection Bureau 18
Financial Coaching: One strategy to improve financial well-being In a randomized control trial of two financial coaching sites, generally people offered access to coaching Were more likely to pay bills on time, Had an increased frequency of savings deposits, Had improvements in savings levels, credit scores, and/or reduced debt, Reported an increased sense of confidence in their finances and reduced feelings of financial stress. Consumer Financial Protection Bureau 19
Office of Financial Empowerment Consumer Financial Protection Bureau 20
Office of Financial Empowerment Mission: We work to empower lower-income and economically vulnerable consumers to make informed financial decisions by providing them with tools and information and by promoting a more inclusive and fair financial marketplace. Consumer Financial Protection Bureau 21
Building partnerships: Your Money, Your Goals Toolkit topics include: Credit Goals Saving Income and spending Cash flow budgeting Debt Financial services Consumer protection Available for download in English and Spanish at consumerfinance.gov Consumer Financial Protection Bureau 22
Building partnerships: Tax-Time Savings Goal: Make savings outreach and education to consumers at tax time universal across all service and product platforms. Key Audiences Consumers VITA / TCE / Military VITA Tax preparation industry / Online and software providers Consumer Financial Protection Bureau 23
Office of Servicemember Affairs Consumer Financial Protection Bureau
Office of Servicemember Affairs Working to ensure that: Servicemembers and their families receive the financial education to make informed decisions Complaints and questions from Servicemembers and their families are monitored and receive responses; Federal and state agencies coordinate their activities to improve consumer protection measures for Servicemembers and their families. Consumerfinance.gov/servicemembers Consumer Financial Protection Bureau 25
Students and Young Consumers
Office for Students Who we are and what we do The CFPB is the primary financial regulator for the student loan industry, working on many fronts to protect borrowers: Helping borrowers (complaints, consumer engagement) Analysis and Reports Supervision and Enforcement Regulation 27
Tools and Resources for Students Paying for College Comparison Tool Repay Student Debt www.consumerfinance.gov/payingfor-college www.consumerfinance.gov/payingfor-college/repay-student-debt Ask CFPB: Student Loans http://www.consumerfinance.gov/ askcfpb 28
Questions? / Discussion www.consumerfinance.gov Janneke Ratcliffe Office of Financial Education 202-435-7951 Janneke.Ratcliffe@cfpb.gov Mike Pierce Office of Students 202-435-7938 Michael.Pierce@cfpb.gov Order free publications: http://promotions.usa.gov/cfpbpubs.html