Bill Overview
Title: Consumer Financial Education and Empowerment Act
Description: This bill establishes within the Consumer Financial Protection Bureau a program to award allocations to state governments, local governments, and other entities for financial literacy programs. Programs eligible for awards may include education regarding credit, student loan debt, homeownership, investments, retirement, or tax planning.
Sponsors: Rep. Scott, David [D-GA-13]
Target Audience
Population: Adults globally who could benefit from increased financial literacy
Estimated Size: 210000000
- The bill targets individuals who would benefit from financial literacy programs, which could include education on a range of financial topics such as credit management, student loans, homeownership, investments, retirement, and tax planning.
- Financial literacy programs have broad application, potentially reaching anyone who manages personal finances, suggesting a very large target population across diverse demographic segments.
- The financial topics mentioned, such as student loans and retirement, imply that both students and working adults could be affected, broadening the impact.
- Considering the global availability of financial products and the need for financial literacy in all economies, the global target population could potentially include most adults who are economically active or making personal financial decisions.
Reasoning
- Considering the scale of the program, its direct impact might be higher on individuals currently lacking financial literacy and those who are actively engaged in financial decisions like students, young professionals, or low-income families.
- The policy has a broad potential target population, but with limited budgetary allocations, it is likely that urban areas or regions with pre-existing financial literacy initiatives might be prioritized, possibly leaving some rural or economically disadvantaged regions underserved.
- The immediate effects, within the first year, might not be significant in terms of wellbeing improvements due to the time it takes for education programs to roll out and individuals to apply learned concepts.
- Long-term effects are expected to be more noticeable, potentially improving financial stability and decision-making, leading to enhanced wellbeing scores among participants.
- Most adults in the U.S. manage personal finances, so practically every individual could be a part of the target population. There will be variation based on engagement and exposure.
Simulated Interviews
College Student (New York, NY)
Age: 22 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- I'm worried about managing my student loans after graduation.
- I wish there was more practical information on finance that wasn't so complicated.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 9 | 6 |
Software Developer (Austin, TX)
Age: 34 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- I've been considering getting into stocks but feel out of my depth.
- Better financial education would make investment decisions easier.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
High School Teacher (Toledo, OH)
Age: 45 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 12/20
Statement of Opinion:
- I often feel anxious about whether I'll have enough savings for retirement.
- Resources to help plan financial futures would be beneficial.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Freelance Graphic Designer (Los Angeles, CA)
Age: 29 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 7/20
Statement of Opinion:
- I really need to understand how to manage taxes and save better given my inconsistent income.
- Having financial guidance could greatly reduce my stress.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
Retiree (Cedar Rapids, IA)
Age: 60 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 15/20
Statement of Opinion:
- I want to make my savings last and avoid financial pitfalls in retirement.
- Any resource that helps manage finances better is appreciated.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Electrician (Orlando, FL)
Age: 50 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 9/20
Statement of Opinion:
- It can be overwhelming to understand financial aspects of running a business.
- Programs could really help business owners like me manage better.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Marketing Specialist (Seattle, WA)
Age: 28 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 11/20
Statement of Opinion:
- Buying a house seems daunting and risky financially.
- Educational programs on homeownership would provide clarity and confidence.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Sales Manager (Chicago, IL)
Age: 39 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 15.0 years
Commonness: 8/20
Statement of Opinion:
- Credit card debt has been a burden, and more structured information could help manage it better.
- I am looking for ways to improve my financial situation.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Retired Engineer (Phoenix, AZ)
Age: 63 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 14/20
Statement of Opinion:
- Being newly retired, I want to ensure that I can manage my investments wisely.
- Financial literacy programs tailored for retirees could enhance my sense of security.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Restaurant Owner (New Orleans, LA)
Age: 41 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 6/20
Statement of Opinion:
- Running a business during tough times is financially challenging.
- Guidance on financial planning could avoid debt and ensure stability.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 9 | 7 |
Cost Estimates
Year 1: $500000000 (Low: $450000000, High: $550000000)
Year 2: $515000000 (Low: $465000000, High: $565000000)
Year 3: $530450000 (Low: $479500000, High: $581500000)
Year 5: $561845000 (Low: $507100000, High: $616500000)
Year 10: $617632950 (Low: $550100000, High: $677600000)
Year 100: $1270429192 (Low: $1133000000, High: $1393000000)
Key Considerations
- The efficiency and reach of the financial literacy programs will significantly influence long-term economic and societal impacts.
- The extent of cooperation and coordination between federal, state, local, and private entities is crucial for program success.
- Measurement and evaluation frameworks need to be robust to assess program impact effectively.