The act requires the Commission to undertake certain activities, including  (1) developing a national strategy to promote financial literacy and  education for all Americans; (2) establishing a financial education Web site  to provide information about federal financial literacy education programs  and grants; (3) establishing a toll-free hotline; (4) identifying areas of  overlap and duplication among federal activities and coordinating federal  efforts to implement the national strategy; (5) assessing the availability,  utilization, and impact of federal financial literacy and education  materials; and (6) promoting partnerships among federal, state, and local  governments, nonprofit organizations, and private enterprises. As such, the  strategy represents a useful first step in laying out key issues and  highlighting the need for improved financial literacy. We have previously identified a set of desirable characteristics for any  effective national strategy. The six characteristics we considered follow:    Clear Purpose, Scope, and Methodology. For  example, it does not identify the sectors or populations most in need of  additional resources. However, the strategy is limited in identifying linkages with these  initiatives, and it does not address how it might integrate with the  overarching plans and strategies of these state, local, and private-sector  entities. Our report recommended that the Secretary of the Treasury, in concert  with other agency representatives of the Financial Literacy and Education  Commission, incorporate into the national strategy (1) a concrete  definition for financial literacy and education to help define the scope of  the Commission’s work; (2) clear and specific goals and performance  measures that would serve as indicators of the nation’s progress in  improving financial literacy and benchmarks for the Commission; (3)  actions needed to accomplish these goals, so that the strategy serves as a  true implementation plan; (4) a description of the resources required to  help policymakers allocate resources and direct implementation of the  strategy; and (5) a discussion of appropriate roles and responsibilities for  federal agencies and others, to help promote a coordinated and efficient  effort. Web Site and Telephone Hotline Offer Financial Education Information from Federal Agencies

The Financial Literacy Act required the Commission to establish and  maintain a Web site to serve as a clearinghouse and provide a coordinated  point of entry for information about federal financial literacy and  education programs, grants, and materials. With minor exceptions, the  Commission did not create original content for its Web site, which it called  My Money. From October 2006 through March 2007, the site averaged about 69,000  visits per month. Without usability testing or measures of customer satisfaction, the  Commission does not know whether the Web site’s content is organized in  a manner that makes sense to the public, or whether the site’s visitors can  readily find the information for which they are looking. The  hotline serves as an order line for obtaining a free financial literacy “tool  kit”—pamphlets and booklets from various federal agencies on topics  such as saving and investing, deposit insurance, and Social Security. The Commission Has Taken Steps to Coordinate Federal Agencies’ Efforts and Promote Partnerships but Faces Challenges

The Financial Literacy Act required that the Commission develop a plan to  improve coordination of federal financial literacy and education activities  and identify areas of overlap and duplication in these activities. However, the Commission has faced several challenges in coordinating the  efforts of the 20 federal agencies that form the Commission. These have included calls to  action in the Commission’s national strategy that encouraged partnerships;  community outreach and events coordinated by Treasury and other  agencies; and public meetings designed to gather input on the national  strategy from various stakeholders. Given the wide array of state, local, nonprofit, and private organizations  providing financial literacy programs, the involvement of the nonfederal  sectors is important in supporting and expanding Commission efforts to  increase financial literacy. As the Commission continues to implement its strategy, we  believe it could benefit from further developing mutually beneficial and  lasting partnerships with nonprofit and private entities that will be  sustainable over the long term.
Why GAO Did This Study

The Financial Literacy and Education Improvement Act created, in December 2003, the Financial Literacy and Education Commission. This statement is based on a report issued in December 2006, which responded to the act's mandate that GAO assess the Commission's progress in (1) developing a national strategy; (2) developing a Web site and hotline; and (3) coordinating federal efforts and promoting partnerships among the federal, state, local, nonprofit, and private sectors. To address these objectives, GAO analyzed Commission documents, interviewed its member agencies and private financial literacy organizations, and benchmarked the national strategy against GAO's criteria for such strategies.

What GAO Found

The National Strategy for Financial Literacy serves as a useful first step in focusing attention on financial literacy, but it is largely descriptive rather than strategic and lacks certain key characteristics that are desirable in a national strategy. The strategy provides a clear purpose, scope, and methodology and comprehensively identifies issues and challenges. However, it does not serve as a plan of action designed to achieve specific goals, and its recommendations are presented as "calls to action" that generally describe existing initiatives and do not include plans for implementation. The strategy also does not fully address some of the desirable characteristics of an effective national strategy that GAO has previously identified. For example, it does not set clear and specific goals and performance measures or milestones, address the resources needed to accomplish these goals, or fully discuss appropriate roles and responsibilities. As a result of these factors, most organizations that GAO spoke with said the strategy was unlikely to have a significant impact on their financial literacy efforts. The Commission has developed a Web site and telephone hotline that offer financial education information provided by numerous federal agencies. The Web site generally serves as an effective portal to existing federal financial literacy sites. Use of the site has grown, and it averaged about 69,000 visits per month from October 2006 through March 2007. The volume of calls to the hotline--which serves as an order line for a free tool kit of federal publications--has been limited. The Commission has not tested the Web site for usability or measured customer satisfaction with it; these are recommended best practices for federal public Web sites. As a result, the Commission does not know if visitors are able to find the information they are looking for efficiently and effectively. The Commission has taken steps to coordinate the financial literacy efforts of federal agencies and has served as a useful focal point for federal activities. However, coordinating federal efforts has been challenging, in part because the Commission must achieve consensus among 20 federal agencies, each with its own viewpoints, programs, and constituencies, and because of the Commission's limited resources. A survey of overlap and duplication and a review of the effectiveness of federal activities relied largely on agencies' self-assessments rather than the independent review of a disinterested party. The Commission has taken steps to promote partnerships with the nonprofit and private sectors through various public meetings, outreach events, and other activities. The involvement of state, local, nonprofit, and private organizations is important in supporting and expanding Commission efforts to increase financial literacy, and our report found that the Commission could benefit from further developing mutually beneficial and lasting partnerships with these entities that will be sustainable over the long term.