,i #aacth ,,congress #ast ,session ,h4 ,r4 #hia ,,in ,,the ,,house ,,of ,,representatives ,february #bh1 #bjac ,mr4 ,carson of ,indiana introduced the following bill2 which was referred to the ,committee on ,financial ,services1 and in addition to the ,committee on ,education and the ,workforce1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to establish a grant program in the ,bureau of ,consumer ,financial ,protection to fund the establishment of centers of excellence to support research1 development and planning1 implementation1 and evaluation of effective programs in financial literacy education for young people and families ages #h through #bd years old1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,young ,americans ,financial ,literacy ,act4 #b4 ,findings ,the ,congress finds as follows3 7#a7 ,since #bjjg1 there has been a nearly #bj-percent drop in the number of #ah-year-olds with bank accounts1 and in #bjab1 nearly one in three ,americans don't pay their bills on time4 7#b7 ,ninety percent of ,americans believe all high school students should be required to take a class in financial education4 7#c7 ,eighty percent of parents believe schools are teaching money management and budgeting1 while over #gj percent of teachers are not teaching financial literacy4 7#d7 ,according to a #bjaj survey1 only a few ,states have adopted varying degrees of financial literacy curriculum1 and only four ,states require high school students to take a semester long course4 7#e7 ,two in five ,u4,s4 adults gave themselves a ,c1 ,d or ,f on their knowledge of personal finance4 ,in #bjaa1 #gf percent admitted they could benefit from additional advice and answers to everyday financial questions from a professional4 7#f7 ,two in five adults indicated that they are now saving less than they were one year ago4 7#g7 ,most adults feel that their financial literacy skills are inadequate1 yet they do not rely on anyone else to handle their finances2 they feel it is important to know more but have received no financial education4 7#h7 ,it is necessary to respond immediately to the pressing needs of individuals faced with the loss of their financial stability1 however increased attention must also be paid to financial literacy education reform and long-term solutions to prevent future personal financial disasters4 7#i7 ,there is an urgent need to respond to the economic recovery with research-based financial literacy education programs to reach individuals at all ages and socioeconomic levels1 particularly those facing unique and challenging financial situations1 such as high school graduates entering the workforce1 soon-to-be and recent college graduates1 young families1 and the unique needs of military personnel and their families4 7#aj7 ,more than #gj percent of parents say they have spoken with their teens about credit and using credit cards wisely1 while less than #dd percent of the teenaged children of those respondents say their parents have talked to them about credit cards4 7#aa7 ,seventy-six percent of parents surveyed said their high school student does not have a budget4 7#ab7 ,seventy-five percent of #af to #ah-year-olds say learning more about budgeting and money management is one of their top priorities4 ,researchers document a snowball effect that such early efforts exponentially increase the likelihood that students will pursue more financial education as time goes on4 7#ac7 ,high school and college students who are exposed to cumulative financial education show an increase in financial knowledge1 which in turn drives increasingly responsible behavior as they become young adults4 7#ad7 ,sixty percent of parents identify their teens as quick spenders1 and most acknowledge they could do a better job of teaching and preparing kids for the financial challenges of adulthood1 including budgeting1 saving1 and investing4 7#ae7 ,ninety-three percent of teens surveyed in a #bjab report say they are not involved in paying household bills or managing the household budget4 ,forty-six percent admit to not knowing how to create a budget4 7#af7 ,the majority 7#eb percent7 of young adults between the ages of #bc-bh consider making better choices about managing money the single most important issue for individual ,americans to act on today4 7#ag7 ,according to the ,government ,accountability ,office1 giving ,americans the information they need to make effective financial decisions can be key to their well-being and to the country's economic health4 ,the recent financial crisis1 when many borrowers failed to fully understand the risks associated with certain financial products1 underscored the need to improve individuals' financial literacy and empower all ,americans to make informed financial decisions4 ,this is especially true for young people as they are earning their first paychecks1 securing student aid1 and establishing their financial independence4 ,therefore1 focusing economic education and financial literacy efforts and best practices for young people between the ages of #h-bd is of utmost importance4 #c4 ,authorization for funding the establishment of centers of excellence in financial literacy education 7a7 ,in general ,the ,director of the ,bureau of ,consumer ,financial ,protection1 in consultation with the ,financial ,literacy and ,education ,commission established under the ,financial ,literacy and ,education ,improvement ,act1 may make competitive grants to and enter into agreements with eligible institutions to establish centers of excellence to support research1 development and planning1 implementation1 and evaluation of effective programs in financial literacy education for young people and families ages #h through #bd years old4 7b7 ,authorized activities ,activities authorized to be funded by grants made under subsection 7a7 shall include the following3 7#a7 ,developing and implementing comprehensive research based financial literacy education programs for young people-- 7,a7 based on a set of core competencies and concepts established by the ,director1 including goal setting1 planning1 budgeting1 managing money or transactions1 tools and structures1 behaviors1 consequences1 both long- and short-term savings1 managing debt and earnings2 and 7,b7 which can be incorporated into educational settings through existing academic content areas1 including materials that appropriately serve various segments of at-risk populations1 particularly minority and disadvantaged individuals4 7#b7 ,designing instructional materials using evidence-based content for young families and conducting related outreach activities to address unique life situations and financial pitfalls1 including bankruptcy1 foreclosure1 credit card misuse1 and predatory lending4 7#c7 ,developing and supporting the delivery of professional development programs in financial literacy education to assure competence and accountability in the delivery system4 7#d7 ,improving access to1 and dissemination of1 financial literacy information for young people and families4 7#e7 ,reducing student loan default rates by developing programs to help individuals better understand how to manage educational debt through sustained educational programs for college students4 7#f7 ,conducting ongoing research and evaluation of financial literacy education programs to assure learning of defined skills and knowledge1 and retention of learning4 7#g7 ,developing research-based assessment and accountability of the appropriate applications of learning over short and long terms to measure effectiveness of authorized activities4 7c7 ,priority for certain applications ,the ,director shall give a priority to applications that-- 7#a7 provide clear definitions of financial literacy and financially literate to clarify educational outcomes2 7#b7 establish parameters for identifying the types of programs that most effectively reach young people and families in unique life situations and financial pitfalls1 including bankruptcy1 foreclosure1 credit card misuse1 and predatory lending2 7#c7 include content that is appropriate to age and socioeconomic levels2 7#d7 develop programs based on educational standards1 definitions1 and research2 7#e7 include individual goals of financial independence and stability2 and 7#f7 establish professional development and delivery systems using evidence-based practices4 7d7 ,application and evaluation standards and procedures2 distribution criteria ,the ,director shall establish application and evaluation standards and procedures1 distribution criteria1 and such other forms1 standards1 definitions1 and procedures as the ,director determines to be appropriate4 7e7 ,limitation on grant amounts 7#a7 ,in general ,the aggregate amount of grants made under this section during any fiscal year may not exceed #ee1jjj1jjj4 7#b7 ,termination ,no grants may be made under this section after the end of fiscal year #bjah4 7f7 ,definitions ,for purposes of this ,act the following definitions shall apply3 7#a7 ,director ,the term ,director means the ,director of the ,bureau of ,consumer ,financial ,protection4 7#b7 ,eligible institution ,the term eligible institution means a partnership of two or more of the following3 7,a7 ,institution of higher education4 7,b7 ,local educational agency4 7,c7 ,a nonprofit agency1 organization1 or association4 7,d7 ,a financial institution4 7#c7 ,institution of higher education ,the term institution of higher education has the meaning given such term in section #aja of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajja7;a774