Young Americans Financial Literacy Act

Summary: Young Americans Financial Literacy Act This bill requires the Consumer Financial Protection Bureau to award competitive grants to eligible&nbsp;institutions for the establishment of centers of excellence to support research, development, implementation, and evaluation of effective financial-literacy education programs for young people and families. An &quot;eligible institution" is a partnership among two or more of the following:  an institution of higher education; a local educational agency; a nonprofit agency, organization, or association; or a financial institution. Authorized grant-funded activities shall include:  developing and implementing comprehensive, research-based, financial-literacy education programs for young people; designing instructional materials; developing and supporting the delivery of professional-development programs in financial-literacy education; improving access to, and dissemination of, financial-literacy information for young people and families; developing educational programs to reduce student-loan default rates; conducting ongoing research and evaluation of financial-literacy education programs; and measuring the effectiveness of authorized activities. The&nbsp;grant program&nbsp;shall terminate&nbsp;after FY2019.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Young Americans Financial Literacy 
Act''.

SEC. 2. FINDINGS.

    The Congress finds as follows:
            (1) That 87 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.
            (2) According to a 2016 survey, 1 in 3 States require high 
        school students to take a personal finance course, and only 5 
        States require high school students to take a semester long 
        personal finance course.
            (3) The percentage of Americans grading themselves with an 
        A or B in personal finance knowledge has declined from 60 
        percent in 2013 to 56 percent in 2016. In 2016, 75 percent of 
        Americans admitted they could benefit from additional advice 
        and answers to everyday financial questions from a 
        professional. Most adults feel that their financial literacy 
        skills are inadequate, yet they do not rely on anyone else to 
        handle their finances; they feel it is important to know more 
        but have received no financial education.
            (4) It is necessary to respond immediately to the pressing 
        needs of individuals faced with the loss of their financial 
        stability; however increased attention must also be paid to 
        financial literacy education reform and long-term solutions to 
        prevent future personal financial disasters.
            (5) 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.
            (6) 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.
            (7) Sixty percent of parents identify their teens as 
        ``quick spenders'', and most acknowledge they could do a better 
        job of teaching and preparing kids for the financial challenges 
        of adulthood, including budgeting, saving, and investing.
            (8) The majority (52 percent) of young adults ages 23 
        through 28 consider ``making better choices about managing 
        money'', the single most important issue for individual 
        Americans to act on today.
            (9) According to the Government Accountability Office, 
        giving Americans the information they need to make effective 
        financial decisions can be key to their well-being and to the 
        country's economic health. The recent financial crisis, when 
        many borrowers failed to fully understand the risks associated 
        with certain financial products, underscored 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 ages 8 through 24 is of utmost importance.

SEC. 3. AUTHORIZATION FOR FUNDING THE ESTABLISHMENT OF CENTERS OF 
              EXCELLENCE IN FINANCIAL LITERACY EDUCATION.

    (a) In General.--The Director of the Bureau of Consumer Financial 
Protection, in consultation with the Financial Literacy and Education 
Commission established under the Financial Literacy and Education 
Improvement Act, shall make competitive grants to and enter into 
agreements with eligible institutions to establish centers of 
excellence to support research, development and planning, 
implementation, and evaluation of effective programs in financial 
literacy education for young people and families ages 8 through 24 
years old.
    (b) Authorized Activities.--Activities authorized to be funded by 
grants made under subsection (a) shall include the following:
            (1) Developing and implementing comprehensive research 
        based financial literacy education programs for young people--
                    (A) based on a set of core competencies and 
                concepts established by the Director, including goal 
                setting, planning, budgeting, managing money or 
                transactions, tools and structures, behaviors, 
                consequences, both long- and short-term savings, 
                managing debt and earnings; and
                    (B) which can be incorporated into educational 
                settings through existing academic content areas, 
                including materials that appropriately serve various 
                segments of at-risk populations, particularly minority 
                and disadvantaged individuals.
            (2) Designing instructional materials using evidence-based 
        content for young families and conducting related outreach 
        activities to address unique life situations and financial 
        pitfalls, including bankruptcy, foreclosure, credit card 
        misuse, and predatory lending.
            (3) Developing and supporting the delivery of professional 
        development programs in financial literacy education to assure 
        competence and accountability in the delivery system.
            (4) Improving access to, and dissemination of, financial 
        literacy information for young people and families.
            (5) Reducing student loan default rates by developing 
        programs to help individuals better understand how to manage 
        educational debt through sustained educational programs for 
        college students.
            (6) Conducting ongoing research and evaluation of financial 
        literacy education programs to assure learning of defined 
        skills and knowledge, and retention of learning.
            (7) Developing research-based assessment and accountability 
        of the appropriate applications of learning over short and long 
        terms to measure effectiveness of authorized activities.
    (c) Priority for Certain Applications.--The Director shall give a 
priority to applications that--
            (1) provide clear definitions of ``financial literacy'' and 
        ``financially literate'' to clarify educational outcomes;
            (2) establish parameters for identifying the types of 
        programs that most effectively reach young people and families 
        in unique life situations and financial pitfalls, including 
        bankruptcy, foreclosure, credit card misuse, and predatory 
        lending;
            (3) include content that is appropriate to age and 
        socioeconomic levels;
            (4) develop programs based on educational standards, 
        definitions, and research;
            (5) include individual goals of financial independence and 
        stability; and
            (6) establish professional development and delivery systems 
        using evidence-based practices.
    (d) Application and Evaluation Standards and Procedures; 
Distribution Criteria.--The Director shall establish application and 
evaluation standards and procedures, distribution criteria, and such 
other forms, standards, definitions, and procedures as the Director 
determines to be appropriate.
    (e) Limitation on Grant Amounts.--
            (1) In general.--The aggregate amount of grants made under 
        this section during any fiscal year may not exceed $55,000,000.
            (2) Termination.--No grants may be made under this section 
        after the end of fiscal year 2019.
    (f) Definitions.--For purposes of this Act the following 
definitions shall apply:
            (1) Director.--The term ``Director'' means the Director of 
        the Bureau of Consumer Financial Protection.
            (2) Eligible institution.--The term ``eligible 
        institution'' means a partnership of two or more of the 
        following:
                    (A) Institution of higher education.
                    (B) Local educational agency.
                    (C) A nonprofit agency, organization, or 
                association.
                    (D) A financial institution.
            (3) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given such 
        term in section 101 of the Higher Education Act of 1965 (20 
        U.S.C. 1001(a)).