Executive Order 13646-Establishing the President's Advisory Council on Financial Capability for Young Americans
Issued 2013-06-25 by Barack Obama
Plain-English Overview
AI-generated summary explaining what this action does, who it affects, and why it matters
On June 25, 2013, President Obama created the President's Advisory Council on Financial Capability for Young Americans, housed within the Department of the Treasury. This council brings together up to 22 private citizens—such as educators, business leaders, youth organization workers, and financial services providers—along with the Secretary of the Treasury and Secretary of Education. The President also invited the Director of the Bureau of Consumer Financial Protection to participate. The council's purpose is to promote financial education for young Americans, helping them learn basic money management skills like understanding the difference between wants and needs, the importance of saving, and how to make informed financial decisions.
The council focuses specifically on building financial capability among young people in schools, families, communities, and workplaces. According to the order, starting financial education early helps prepare young Americans for complex financial decisions they'll face as adults, particularly around financing higher education and saving for retirement. The council is tasked with collecting information and views on financial capability from various government agencies and other sources to help guide federal efforts in this area.
The President has general authority under Article II of the Constitution to manage the executive branch, which typically includes creating advisory councils within the White House or existing departments. However, the constitutional authority for creating such bodies can be debatable depending on whether they simply advise or attempt to exercise regulatory powers that might require congressional authorization.
AI-generated summary for educational purposes
Constitutional Analysis
How this action fits (or doesn't) within Article II authority and existing law
Executive Order 13646 ("Executive Order 13646-Establishing the President's Advisory Council on Financial Capability for Young Americans") restructures or establishes federal entities. The stated purpose: "financial capability among young Americans and encourage building the financial capability of young people at an early stage in schools, families, communities, and the workplace." The President has authority to manage the executive branch under Article II, including creating task forces, councils, and working groups within the White House. However, creating independent agencies with binding regulatory authority, or fundamentally restructuring congressionally created departments, typically requires legislative authorization.
The Reorganization Act historically provided a framework for executive reorganization subject to congressional review. Current reorganization authority is more limited. The constitutionality depends on whether this order creates White House advisory bodies (acceptable) or attempts to restructure agencies in ways that conflict with their enabling statutes (questionable).
Official Summary
Administration of Barack Obama, 2013 Executive Order 13646—Establishing the President's Advisory Council on Financial Capability for Young Americans June 25, 2013 By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered as follows: Section 1 . Policy . To contribute to the Nation's future financial stability and increase upward economic mobility, it is the policy of the Federal Government to promote financial capability among young Americans and encourage building the financial capability of young people at an early stage in schools, families, communities, and the workplace. By starting early, young people can begin to learn the difference between wants and needs, the importance and power of saving, and the positive and productive role money can play in their lives. Having a basic understanding of money management from an early age will make our young people better equipped to tackle more complex financial decisions in their transition to adulthood, when critical decisions about financing higher education and saving for retirement can have lasting consequences for financial security. Strengthening the financial ca