The Federal Government’s Role in Empowering Americans to Make Informed Financial Decisions 043007

The purpose of the hearing is to examine the status and effectiveness of federal financial literacy programs and to assess the activities of the Financial Literacy Commission. Government and private studies, statistics, and national surveys indicate that far too many Americans of all ages lack the knowledge to make informed decisions regarding their personal finances. Financial decision-making also has become so complicated that most individuals stand to benefit from further financial education. Lack of understanding and uncertainty about financial matters and decision-making leaves individuals of all age groups and income levels unable to understand the ramifications of their decisions and vulnerable to predatory practices. Financial illiteracy has numerous negative consequences, which include excessive credit card and household debt, the payment of excessive fees, and the inability to save for retirement, a first home, education, or other long-term goals.