What should efforts to improve financial capability be based on?

Efforts to improve financial capability should be based on evidence of effectiveness because this approach ensures that the strategies and interventions implemented are grounded in research and data that demonstrate positive outcomes. Using evidence-based methods allows financial counselors to choose techniques that have been proven to work, thereby increasing the likelihood that individuals will achieve better financial behaviors and outcomes.

In contrast, relying on popular opinions and trends might lead to the adoption of methods that are not substantiated or may not yield tangible results. Similarly, personal experiences, while valuable, can be subjective and might not apply universally to all individuals. Lastly, government regulations may dictate certain standards or compliance measures, but they do not necessarily provide the frameworks or tools that effectively enhance the financial capabilities of individuals. Thus, grounding efforts in evidence of effectiveness is the most reliable means to foster improved financial capability.