Introduction of the Young Americans Financial Literacy Act

Floor Speech

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Mr. CARSON of Indiana. Mr. Speaker, today I am pleased to re-introduce the Young Americans Financial Literacy Act. Financial literacy is critical to ensuring future financial responsibility. A recent report entitled ``Money Matters on Campus'', conducted by Higher One and EVERFI, highlights that the state of financial literacy among young adults is not improving. Only seventeen states require some form of high school financial training, even though studies show students who receive financial literacy are considerably more fiscally responsible. Such students are more accountable with credit, more financially cautious and more averse to incurring debt. When students participated in a purely financial knowledge- based survey, only 12% answered correctly about what things to consider if one has too many credit cards.

Young adults are consistently exhibiting deficient understanding of financial literacy and how to plan for future economic goals. Just over half of the students in the survey knew the formula for calculating net worth; while only 12% knew the general rule for how many months financial planners recommend to have set aside in case of an emergency.

Young adults consistently exhibit deficient understanding of financial literacy and how to plan for future economic goals. Last year, the Organization for Economic Cooperation and Development released a global report of financial literacy which ranked the United States in the middle of eighteen countries surveyed.

I believe America should be leading the world with the best-educated students who will drive our economic innovation and success, so please join me in cosponsoring the Young Americans Financial Literacy Act. This act:

Establishes a grant program in the Bureau of Consumer Financial Protection to develop and implement financial literacy programs for young people ages eight to twenty-four;

Incentivizes the development of partnerships between institutions of higher education, local educational agencies, non-profit organizations, and financial institutions to develop programs aimed at young Americans in different phases of their life;

Ensures the development of evidence-based instructional material that is geared towards targeted groups and addresses unique life situations, including bankruptcy, foreclosure, student loans, credit card misuse; and

Conducts ongoing assessment and accountability of the program over the short- and long-term to ensure that grant money achieves the greatest impact.

I urge all of my colleagues to join me in supporting the Young Americans Financial Literacy Act.

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