Financial Literacy and Education Commission (FLEC) Meeting Summary

Department of the Treasury

Wednesday, February 25th, 2015 from 9:00 a.m. to 11:30 a.m. EDT

Summary Prepared by Micaela Coleman

Overview: Today, the Financial Literacy and Education Commission (FLEC) held its public meeting at the Department of the Treasury. FLEC is coordinated by the Department of the Treasury's Office of Financial Education within the Office of Consumer Policy. It was created to promote financial education and literacy in the U.S. and coordinate the activities of its members.

FLEC is chaired by the Secretary of the Treasury, Jacob J. Lew, and the vice chair, Director of the Consumer Financial Protection Bureau, Richard Cordray. It is made up of the heads of 21 additional federal agencies: the Office of the Comptroller of the Currency; the Federal Reserve Board; the Federal Deposit Insurance Corporation; the National Credit Union Administration; the Securities and Exchange Commission; the Departments of Education, Agriculture, Defense, Health and Human Services, Housing and Urban Development, Labor, and Veterans Affairs; the Federal Emergency Management Agency, the Federal Trade Commission; the General Services Administration; the Small Business Administration; the Social Security Administration; the Commodity Futures Trading Commission; the Office of Personnel Management and the White House Domestic Policy Council.

Summary:The meeting focused on youth savings programs and the new regulatory guidance surrounding it that was publicly released this week. Other discussions included current youth savings programs from around the country as well as public policy implications these programs are having on the local, state and federal level.

Opening Remarks

Several members of the Commission provided opening remarks. They included:

Richard Cordray

Director

Consumer Financial Protection Bureau

Thomas J. Curry

Comptroller of the Currency

Office of the Comptroller of the Currency

Mark Pearce

Director of the Division of Depositor and Consumer Protection

Federal Deposit Insurance Corporation

They collectively reviewed the new regulatory guidance that was publicly unveiled yesterday by financial regulatory agencies. The five federal financial regulatory agencies, including the Board of Governors of the Federal Reserve System;Federal Deposit Insurance Corporation; Financial Crimes Enforcement Network; National Credit Union Administration and; Office of the Comptroller of the Currency, issued guidance tofederally insured depository institutions to encourage youth saving programs. The joint release applies to all federally insured institutions, banks, and saving associations throughout the country. The guidance encourages these financial institutions to develop and implement programs that will expand young peoples’ financial capability and build opportunities for financial inclusion for more families. Additionally, it also sought to answer common questions in relation to school and community-based youth savings and financial education programs as well as provide in-depth background information and resources for new and already existing programs.

Read more here: Youth Savings Program Guidance& Frequently Asked Questions

Panel 1 Youth Savings In Action

Consisted of presentations from current youth savings programs throughout the country followed by questions from members of the Commission.

Presenters included:

  1. The National Credit Union Foundation
  2. Bird Elementary School Community Financial Student-Run Credit Union & Financial Literacy Education Program
  3. Capital One and Junior Achievement Financial Program
  4. TS Institute Financial Literacy Program

Panel 1 Power Point Presentations may be found here: Youth Savings Programs in Action

Panel 2 Policy Implications

Consisted of presentations from public sector members throughout the country who have implemented youth savings programs. Concluded with follow-up questions from members of the Commission.

Presenters included:

  1. Texas Center for Public Policy
  2. Massachusetts Financial Literacy Trust Fund of the Massachusetts Department of the Treasury
  3. The Consumer Federation of America

Panel 1 and 2 Conclusions: There are many challenges with implementing and maintaining youth savings programs. They include parental and family support of individual youth, training of teachers and school community members, as well as school infrastructure, capacity, and maintenance of the youth savings program.

Additionally, there are public policy issues. They include regulatory and logistical barriers and well as community, local and state support, and maintenance and upkeep of individual youth savings programs throughout communities.

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