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Financial Education
Issue
Improving the ability of consumers to make use of the growing array of bank products to improve the management of their finances and the building of their wealth by increasing all consumers' financial literacy.
Position Statement
ABA strongly supports financial literacy initiatives at the local, state and federal levels. The ABA directly supports bankers' efforts through its financial education subsidiary, the ABA Education Foundation. Founded by bankers in 1925, the Foundation assists bankers in their work to promote financially literate customers and communities.
The ABA Education Foundation's signature programs, National Teach Children to Save Day and Get Smart About Credit Day, have helped nearly 50,000 bankers teach critical saving and credit management skills to more than 2 million students.
ABA promotes the following steps to improve the public's level of financial literacy:
• Financial literacy initiatives should focus on arming consumers with the necessary skills to avoid predatory lending practices.
• Banks will continue to take steps to increase the levels of financial literacy among all Americans, including working to increase and expand homeownership education and counseling and teaching people to save.
• Consumer education programs should incorporate information regarding how to avoid identity theft.
• Banks will continue to work cooperatively to improve basic financial education at every level in the education process, beginning with the youth and extending through continuing education tools and programs for adults.
Explanation
Members of ABA are dedicated to strengthening America's communities by meeting the financial needs of customers fairly and efficiently and by fostering housing opportunities and equal credit opportunity. An informed, educated consumer is better able to make financial decisions and avoid predatory lenders and other unscrupulous providers of financial services. Education and counseling remain important ways to prevent predatory lending abuses.
In addition, ABA is committed to the following financial literacy responsibilities:
• To continue providing financial education resources and opportunities through the ABA Education Foundation.
• To work in coordination, where possible, with the other trade associations and regulatory agencies to develop and implement guidance or best practices for use by providers of financial services;
• To identify and work with other business and educational groups to promote the financial education goals and programs established by the ABA; and
• To represent ABA membership in financial literacy forums with other groups.
Contact for further information: Laura Fisher (202) 663-5309; Nessa Feddis (202) 663-5433; Steve Kenneally (202) 663-5147.
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