New President’s Council to Focus on Kids and Money

President Obama has authorized a private-sector advisory council focused squarely on young people's ability to learn about money. Student debt and early retirement saving are high on the hit list.

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Flying somewhat under the radar, President Obama last month authorized another commission to help raise financial awareness—this one focused solely on young people. Members will be selected from the private sector over the next few months, and the group should hold its first meeting by the end of the year.

We already have a Financial Literacy and Education Commission comprising the heads of 21 federal agencies including Treasury and the Consumer Financial Protection Bureau. This group put together our national strategy for financial education and runs, an impartial personal finance website.

We also have had a President’s Advisory Council on Financial Capability comprising private-sector leaders in finance and education. This group issued its final report in January offering ideas for improving personal finance education and was responsible for two helpful websites—, which details what kids should know about money at what age, and, which offers teachers tools to integrate personal finance lessons into subject areas like math and English.

Now we have the new President’s Advisory Council on Financial Capability for Young Americans. As the name suggests, this puts the federal government’s focus on young people. That is precisely where it should be as it relates to raising the financial I.Q. of Americans. The new group’s mission will be to:

  • Build the financial capability of Americans at an early age in schools, families, communities, and the workplace
  • Teach young people the difference between wants and needs, the importance and power of saving, and the positive and productive role money can play in their lives
  • Promote a basic understanding of money management at an early age
  • Better equip young people to tackle complex financial decisions surrounding student loans and saving for retirement

Countries such as Australia and Britain have mandated that financial education be part of every school’s curricula, signaling the importance of reaching young people and making money decisions a natural part of their life. We have no such mandate in the U.S. and likely never will. But we’re making progress.

The JumpStart Coalition for Personal Financial Literacy and the Council for Economic Education, two leading nonprofits in the fight against global financial illiteracy, have crafted standards to help schools in all 50 states begin to teach personal finance. They were instrumental in creating a model that encourages and instructs teachers interested in taking on the mission. There is now a broad effort to get personal finance incorporated into the common core initiative, which 46 states have agreed to. Private sector organizations like the credit card company Visa and accounting firm PwC have contributed millions of dollars to train teachers.

Personal financial know-how on a broad scale is seen as the best way to avoid another financial crisis. After all, if you understand that you can’t afford the mortgage when the teaser rate expires, you probably won’t buy the house. Adults need help too, and that’s partly why we have the CFPB—to keep financial institutions from preying on those with little money savvy. But a council dedicated solely to young people puts the financial literacy mission squarely where it belongs. This is a long-term approach. We might as well get started.


When only 17 out of 50 states require Economics as coursework before graduation, the financial mess that many Americans and our government find themselves in, becomes amazingly simple to remedy.  I am not sure why an outside private-sector advisory council is needed to point out that young people need to learn about money.  One would think that the ever-expanding Department of Education or a Congressional Committee or even the Federal Reserve might address such a need. 


Dan, you must have a scoop on this “private-sector advisory council focused squarely on young people’s ability to learn about money.”  I haven’t seen it on any of my Google alerts.  Since you augmented this article with another one, I will extend my comments on it.  But, substantially, I will be telling the history of the Truth in Lending Act (TILA) of 1968 with respect to the selection of a method to express an Annual Percentage Rate.  It was, and continues to be, the mathematically-UNTRUE NOMINAL, SIMPLE-INTEREST APR (SIAPR), stated in the Truth in Lending Act at Appendix J(b)(1) the rate for a unit-period multiplied by the number of unit periods in a year.  It should be the rate for a unit-period compounded for the number of unit period in a year (CAPR.)  That mathematically-true method is used in the U.K. (England, etc.) and Canada.  The difference can be astronomical in the two methods.  A payday loan in the USA with $15 interest to borrow $100 for 14 days has a SIAPR of 391.07%, (15%*365/14), but is really 3,723.66% (1.15^(365/14)-1)*100. The new council will likely not expose that, unless there is a consumer advocate like me on it.  A F Bob Blair Jr.


This is a great idea. Youth is the best time to focus on financial literacy, before people dig themselves too deep a hole. Schools need to do a better job of promoting financial awareness.

Sharon Marchisello, author of Live Cheaply, Be Happy, Grow Wealthy


Evan, Excellent observation on teaching youth about handling money.  I really think a more appropriate name is FINANCE.  Economics (Greek oikus nomus, house manage) is different.  Ah! but the lenders have controls of the method, through the legislators they have favored. (euphemistic for "bought.") All governmental publications for youth use the Simple-Interest Annual Percentage Rate to express in Lending an Annual Percentage Rate. It is the Nominal, Simple-Interest APR used in the Truth in Lending Act of 1968 (unchanged); the NOMINAL APR in Appendix J(b)(1) the rate for a unit-period multiplied by the number of unit-periods in a year.  All dictionaries define "Nominal" and "not real or actual."  The United Kingdom uses the mathematically-true, COMPOUND APR as does the USA in the Truth in Savings Act, where it is called the Annual Percentage Yield. The most egregious deception currently is the APR on overdrafts as published by the Consume Financial Protection Board (CFPB). From their research they find and overdraft charge (really interest) of $35 for an overdraft of $24 to be paid in 3 days as having a APR (SIAPR) of $17,000%.  That is incorrect.  The SIAPR is really 17,236.11%, calculated (using Excel mathematical symbols) as (34/24)*(365/3)*100.  But that simple-interest method is also incorrect.  The mathematically-true method is the compound method (((43/24)+1)^(365/3)-1)*100 which  equals 4,214,099,722,847,300,000,000,000,000,000,000,000,000,000,000,000%.  Now, do you understand why the lenders will fight to have the true rate concealed.  If you doubt that number, ask a PhD in Finance at you local college ... one who has no remuneration from a lender.