Welcome to the CFEd™ Designation Program

HIFE, The CFEd and The Financial Literacy Movement in America

The Financial Literacy Movement in America

Title V of the Fair and Accurate Credit Transactions Act of 2003, known as the Financial Literacy and Education Improvement Act, created the Financial Literacy and Education Commission, comprised of twenty federal agencies, and charged it with coordinating federal efforts and developing a national strategy to promote financial literacy in America.  In November of 2004 the GAO (Government Accountability Office) hosted a forum of some twenty government, private sector and nonprofit organizations to study the problem of financial literacy and recommend policy initiatives to improve financial education in America.  The upshot of this forum is summarized in the GAO report (Comptroller General’s Forum: The federal Government’s Role in Improving Financial Literacy) as…

·        The federal government should serve as a leader.  The federal government should use its influence, authority and ‘bully pulpit’ to make financial literacy a national priority.

·        Increased public-private partnerships and interagency coordination are needed.  Partnerships between federal agencies and other (private sector and not-for-profit) organizations are the best way…to help federal agencies reach targeted populations at the community level.

·        Consumers need financial information on a broad range of topics.  Among the most important topics for financial education are basic skills – such as budgeting, planning and managing money – as well as information on saving for retirement, investing and managing credit.  Financial education should be delivered at ‘teachable moments’ when the information is applicable to a person’s life.

·        A variety of methods are needed to deliver financial education effectively.  Although participants favored using a variety of different delivery methods to reach different audiences, they added that personal interaction is often the most effective vehicle for conveying information in a way that actually impacts behavior.

·        Financial literacy programs need to be evaluated.  Participants noted that federal agencies should carefully consider whether they have sufficient expertise to deliver financial education effectively or whether another entity, such as a private or nonprofit organization, might be a more appropriate choice

HIFE (Heartland Institute for Financial Education), a nonprofit organization, is committed to these five summary conclusions of the GAO report.  HIFE’s CFEd designation program was developed as one means to provide a standardized tool to both provide and insure the monitoring of quality financial literacy to Americans.

HIFE and the CFEd Professional Designation

Financial literacy can be defined “as the ability to understand financial choices, plan for the future, spend wisely, and manage the challenges that come with life events such as job loss and saving for retirement or a child’s education” (from Highlights of a GAO Forum).  The GAO report lists a number of trends that have emerged in recent years that underscore the importance of financial literacy in everyday life.  

·        Consumers are faced with a wider and increasingly complicated array of options for managing their personal finances as well as selecting investments and credit products.

·        Technological advances have increased the capacity for targeted marketing to consumers, potentially increasing some consumers’ vulnerability to predatory lenders and other unscrupulous providers of financial services.

·        Consumers are increasingly responsible for their own retirement savings, with traditional defined-benefit retirement plans becoming increasingly rare.

·        The personal saving rate has fallen dramatically, declining from nearly 7% of gross domestic product in the 1970s and 1980s to around 2% in recent years.

·        Household debt as a percentage of income hovers at record high levels.  In addition, bankruptcy rates have more than quadrupled in the past twenty years”.   

It is in light of these trends that the Heartland Institute of Financial Education offers the CFEd designee program to professionals in the various fields of financial services.  It is our commitment and our belief that the Certified Financial Educator program will assist financial professionals’ participation in the financial literacy movement’s intention to provide Americans with quality, practical and measurable financial education.

The CFEd Professional Designation Program and You 

Nothing promotes expertise like education.  More and more professionals in the financial services arena recognize solid educational principles as an alternative to traditional selling practices. People want to be educated, not to replace the advice and services of financial professionals, but to protect themselves from unscrupulous vendors.  People appreciate a basic understanding of the confusing world of financial services and respect those who can provide that education.  As in any service industry, we all want to have some control over our important decisions and we are more likely to make timely decisions when we feel we have some understanding of the process.  Financial education assists consumers in making timely decisions by working with professionals who they trust to provide the financial education they need. 

HIFE, through the CFEd professional designation program, is committed to assisting financial professionals in all fields of the financial service industry, to provide quality financial education both to groups and to individuals.  HIFE is looking for financial providers with expertise in their field and some experience in adult education (HIFE does not require that this educational experience be in the financial service industry).  If you are interested in distinguishing yourself as one qualified to provide financial education, the CFEd designation program may be right for you.     

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