To establish a grant program in the Department of the Treasury to fund the establishment of centers of excellence to support research, development and planning, implementation, and evaluation of effective programs in financial literacy education for young adults and families ages 15-24 years old, and for other purposes.

Summary: Young Adults Financial Literacy Act - Authorizes the Secretary of the Treasury to make competitive grants to, and enter contracts 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 adults and families ages 15-24 years old.

Defines "eligible institution" as any partnership consisting of an institution of higher education and any of the following: (1) one or more local educational agencies; (2) a nonprofit agency, organization, or association; (3) a community-based organization; or (4) a financial institution.

SECTION 1. SHORT TITLE.

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

SEC. 2. FINDINGS.

    The Congress find as follows:
            (1) Eighty percent of parents believe schools are teaching 
        money management and budgeting, while over 70 percent of 
        teachers are not teaching financial literacy.
            (2) 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.
            (3) 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.
            (4) There is an urgent need to respond to the economic 
        crisis with research-based financial literacy education 
        programs 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 the unique needs of military personnel and their 
        families.
            (5) More than 70 percent of parents say they have spoken 
        with their teens about credit and using credit cards wisely, 
        while less than 44 percent of the teenaged children of those 
        respondents say their parents have talked to them about credit 
        cards.
            (6) Seventy-six percent of parents surveyed said their high 
        school student does not have a budget.
            (7) The average credit card debt among graduate students 
        who carry cards is $7,831 per student, an increase of 59 
        percent over 1998's average debt of $4,925.
            (8) Young adults between 20 and 24 represent the fastest 
        growing segment of bankruptcy filings; in fact, more people 
        filed for bankruptcy in 2004 than graduated from college.
            (9) Credit card debt among young adults between the ages of 
        25 and 34 has increased 55 percent, while credit card debt 
        among the youngest adults, between 18 and 24, has skyrocketed 
        104 percent since 1982.
            (10) In April of 2009, the Comptroller General testified to 
        the Subcommittee on Oversight of Government Management, the 
        Federal Workforce, and the District of Columbia, of the 
        Committee on Homeland Security and Governmental Affairs of the 
        Senate that ``In 2006, we reported that the [Financial Literacy 
        and Education] Commission's National Strategy for Financial 
        Literacy was a useful first step in focusing attention on 
        financial literacy but largely was descriptive rather than 
        strategic. . . . However, to date the Commission has not 
        incorporated the other elements we recommended. . . . For the 
        most part, these revisions have consisted of newly developed 
        `calls to action' and have not represented a fundamental shift 
        in approach that incorporates specific recommendations on 
        roles, funding, and activities.''.

SEC. 3. GRANT PROGRAM TO FUND THE ESTABLISHMENT OF CENTERS OF 
              EXCELLENCE IN FINANCIAL LITERACY EDUCATION.

    (a) In General.--The Secretary of the Treasury, acting through the 
Assistant Secretary for Financial Institutions and the Deputy Assistant 
Secretary for Financial Education and in consultation with the 
Secretary of Education and the Financial Literacy and Education 
Commission established under the Financial Literacy and Education 
Improvement Act, may make competitive grants to and enter into 
contracts 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 adults and families ages 15-24 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 adults 
        ages 15-24 which can be incorporated into educational settings 
        through existing academic content areas.
            (2) Targeting programs based on a set of educational 
        expectations, pre- and post-education assessment tools, 
        effective training programs for educators, and materials that 
        appropriately serve various segments of young adult and family 
        populations, particularly minority and disadvantaged 
        individuals.
            (3) Aligning financial literacy education programs to a set 
        of core competencies and concepts, including goal setting; 
        planning; budgeting; managing money or transactions; tools and 
        structures; behaviors; consequences; saving, both long- and 
        short-term; managing debt and earning.
            (4) Designing instructional materials using evidence-based 
        content for young families and related outreach activities to 
        address unique life situations and financial pitfalls such as 
        bankruptcy, foreclosure, credit card misuse, and predatory 
        lending.
            (5) Developing and supporting the delivery of professional 
        development programs in financial literacy education that are 
        research-based, on-going and collaborative to assure competence 
        and accountability in the delivery system, including 
        recognition of achievement and competence within existing 
        systems for educators and instructors.
            (6) Improving access to financial literacy education 
        programs for young adults and families by collaborating with 
        financial institutions to disseminate information and awareness 
        of the importance of financial literacy education.
            (7) 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 in partnership with non-profit associations.
            (8) Conducting on-going research and evaluation to assure 
        learning of defined skills and knowledge, and retention of 
        learning.
            (9) Developing research-based assessment and accountability 
        of the appropriate applications of learning over short and long 
        terms.
    (c) Priority for Certain Applications.--The Secretary 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 adults and families 
        in unique life situations, specifically individuals in ages 15-
        24 years old;
            (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 Secretary shall, by regulation and order, 
establish application and evaluation standards and procedures, 
distribution criteria, and such other forms, standards, definitions, 
and procedures as the Secretary determines to be appropriate.
    (e) Minimum and Maximum Amount of Any Grant.--No grant under this 
section may be for an amount less than $2,000,000 or more than 
$5,000,000.
    (f) Definitions.--For purposes of this Act the following 
definitions shall apply:
            (1) Eligible institution.--The term ``eligible 
        institution'' means any partnership consisting of an 
        institution of higher education and any of the following which 
        meets such requirements for eligibility as the Secretary of the 
        Treasury and the Secretary of Education may jointly prescribe 
        by regulation:
                    (A) One or more local educational agencies.
                    (B) A nonprofit agency, organization, or 
                association.
                    (C) A community-based organization.
                    (D) A financial institution.
            (2) 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)).
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury, unless the context specifically refers to the 
        Secretary of Education.

SEC. 4. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to the Secretary $55,000,000 
for each of fiscal years 2012 through 2016 for carrying out this Act.

SEC. 5. REGULATIONS.

    In addition to regulations prescribed under section 3(d), the 
Secretary may prescribe such regulations as may be necessary to carry 
out this Act.