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[Extensions of Remarks]
[Pages E740-E741]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
INTRODUCTION OF THE YOUNG AMERICANS FINANCIAL LITERACY ACT
______
HON. ANDRE CARSON
of indiana
in the house of representatives
Friday, August 7, 2020
Mr. CARSON of Indiana. Madam Speaker, today I am pleased to re-
introduce the Young Americans Financial Literacy Act. Financial
literacy is critical to ensuring future financial responsibility.
Studies have shown that 88 percent of Americans believe finance
education should be taught in schools and 92 percent of K-12 teachers
believe that financial education should be taught in school, but only
12 percent of teachers actually teach the subject. Yet, according to a
2020 survey, less than half of states require high school students to
take a personal finance course, and less than 17 percent of high school
students were required to take a semester long personal finance course.
I believe that Congress has an opportunity and a responsibility to
address the pressing needs of individuals faced with the loss of their
financial stability and the challenges of economic uncertainty. This
should include financial literacy education reform and long-term
solutions to prevent future personal financial disasters. Research-
based financial literacy education programs are needed to reach
individuals at all ages and socioeconomic levels, particularly those
facing unique and challenging financial situations, such as high school
graduates entering the workforce, soon-to-be and recent college
graduates, young families, and to address the unique needs of military
personnel and their families. High school and college students who are
exposed to cumulative financial education show an increase in financial
knowledge, which in turn drives increasingly responsible behavior as
they become young adults.
According to the Government Accountability Office, giving Americans
the information they
[[Page E741]]
need to make effective financial decisions can be key to their well-
being and to the country's economic health. The global financial
crisis, when many borrowers failed to fully understand the risks
associated with certain financial products and currently, the economic
hardships presented by the sudden disruptions caused by the spread of
COVID-19, underscore the need to improve individuals' financial
literacy and empower all Americans to make informed financial
decisions. This is especially true for young people as they are earning
their first paychecks, securing student aid, and establishing their
financial independence. Therefore, focusing economic education and
financial literacy efforts and best practices for young people between
the ages of 8-24 is of utmost importance.
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 or
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 grand money achieves the
greatest impact.
I urge all of my colleagues to join me in supporting the Young
Americans Financial Literacy Act.
