[Congressional Record Volume 161, Number 55 (Thursday, April 16, 2015)]
[Extensions of Remarks]
[Pages E520-E521]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




       INTRODUCTION OF THE YOUNG AMERICANS FINANCIAL LITERACY ACT

                                  _____
                                 

                           HON. ANDREE CARSON

                               of indiana

                    in the house of representatives

                        Thursday, April 16, 2015

  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-

[[Page E521]]

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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