Financial Literacy: Better Outcome Reporting Could Facilitate Oversight of Programs for Older Adults and People with Disabilities | U.S. GAO Skip to main content
Strong Facts
It’s important to support older adults and those with disabilities in understanding and managing their finances because they are typically susceptible to financial problems.
We discovered 24 instances of national financial literacy initiatives targeted at these organizations, including a course to teach older grownups about scams and financial information to people with disabilities.
Federal financial literacy efforts are coordinated by a federal commission, but its reports do n’t reveal how effectively these programs are working. We suggested that the committee make its reports better to aid Congress and other organizations in ensuring that these programs increase economic literacy.
Miss to Features
Highlights
What GAO Found
Senior citizens and those with disabilities experience financial decisions that can have long-lasting effects on their financial well-being. They frequently must manage government benefits, such as Social Security and Medicare, make cover decisions, maintain retirement benefits, and avoid fraudulent techniques. GAO identified 24 instances of national financial literacy initiatives and sources intended to assist seniors and those with disabilities in making financial decisions. Examples include a syllabus for preventing elder economic oppression, a site with information on employment for people with impairments, and a line that provides data on pensions, illness, and other benefits.
Federal Financial Literacy Initiatives for People with Disabilities and Older Parents
The Financial Literacy and Education Commission, which is made up of the eyes of 24 federal authorities and entities, was established by the Financial Literacy and Education Improvement Act to promote coordinated national attempts. It does so through working groups, open discussions, and cooperation on financial literacy courses and tools. The Commission’s head and evil head, both, are the Department of the Treasuryand Consumer Financial Protection Bureau, whose main communication channel is through its quarterly reports to Congress.
Of the 24 financial literacy programs GAO identified that serve older adults and people with disabilities, the Commission’s five annual reports from fiscal years 2015 to 2022 included program outcome data for one. Similar insufficient outcome information is provided in the reports for other financial literacy initiatives. The Commission’s national strategy emphasizes the value of gathering data on financial education activities ‘ outcomes to assess their effects and inform data-driven improvements. Further, GAO’s prior work has shown that evidence- based policymaking is important for effective program management. The Commission and Congress could have more reliable information to facilitate oversight of federal financial literacy efforts if they put more emphasis on outcome reporting in their efforts. More details could also aid member organizations in determining program viability and aid Congress in determining how agencies ‘ efforts are serving the needs of particular groups, such as older adults and people with disabilities.
Why GAO Did This Study
Financial literacy is essential to helping ensure people’s financial stability and well-being, including the ability to make wise decisions and take wise financial decisions. Financial literacy is of particular importance for older people and those with disabilities. Numerous federal organizations use programs and resources to promote financial literacy, including print and online resources.
GAO was asked to provide a report on federal programs for older people and those with disabilities in financial literacy. This report addresses ( 1 ) how the Financial Literacy and Education Commission coordinates financial literacy efforts and reports program results to Congress and the public, as well as ( 1 ) how federal resources are available to help older adults and people with disabilities improve their financial literacy. GAO reviewed agency strategic plans, annual reports, websites, and other materials, and interviewed representatives of federal agencies and relevant organizations, such as the AARP and National Disability Institute.
Recommendations
GAO is proposing that Treasury and the Consumer Financial Protection Bureaucoordinate with one another and with Commission agencies to encourage the continued gathering of data on financial literacy program outcomes and include these data in the Commission’s annual report to Congress. Treasury and the Consumer Financial Protection Bureauagreed with GAO’s recommendations.
Recommendations for executive action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of the Treasury | In order to encourage the ongoing collection of data on financial literacy program outcomes, the Secretary of the Treasury should coordinate with the vice chair and the agencies represented on the Commission in order to encourage the inclusion of these data in the Commission’s annual report to Congress. ( Recommendation 1 ) | |
| Consumer Financial Protection Bureau | In order to encourage the continued collection of data on financial literacy program outcomes, the Director of the CFPB should coordinate with the chair and the agencies represented on the Commission in order to include these data in the Commission’s annual report to Congress. Recommendation 2 |