(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 bor-
rowers failed to fully understand the risks associated 
with certain financial products, underscored the need 
to improve individuals’ financial literacy and em-
power all Americans to make informed financial de-
cisions. This is especially true for young people as 
they are earning their first paychecks, securing stu-
dent aid, and establishing their financial independ-
ence. Therefore, focusing economic education and fi-
nancial literacy efforts and best practices for young 
people ages 8 through 24 is of utmost importance. 
SEC. 3. AUTHORIZATION FOR FUNDING THE ESTABLISH-
MENT OF CENTERS OF EXCELLENCE IN FI-
NANCIAL LITERACY EDUCATION. 
(a) IN GENERAL.—The Director of the Bureau of 
Consumer Financial Protection, in consultation with the 
Financial Literacy and Education Commission established 
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under the Financial Literacy and Education Improvement 
Act, shall make competitive grants to and enter into agree-
ments with eligible institutions to establish centers of ex-
cellence 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 comprehen-
sive research based financial literacy education pro-
grams for young people— 
(A) based on a set of core competencies 
and concepts established by the Director, in-
cluding goal setting, planning, budgeting, man-
aging money or transactions, tools and struc-
tures, behaviors, consequences, both long- and 
short-term savings, managing debt and earn-
ings; and 
(B) which can be incorporated into edu-
cational settings through existing academic con-
tent areas, including materials that appro-
priately serve various segments of at-risk popu-
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lations, particularly minority and disadvantaged 
individuals. 
(2) Designing instructional materials using evi-
dence-based content for young families and con-
ducting related outreach activities to address unique 
life situations and financial pitfalls, including bank-
ruptcy, foreclosure, credit card misuse, and preda-
tory lending. 
(3) Developing and supporting the delivery of 
professional development programs in financial lit-
eracy education to assure competence and account-
ability 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 de-
veloping programs to help individuals better under-
stand how to manage educational debt through sus-
tained 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 reten-
tion of learning. 
(7) Developing research-based assessment and 
accountability of the appropriate applications of 
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learning over short and long terms to measure effec-
tiveness of authorized activities. 
(c) PRIORITY
FOR CERTAIN APPLICATIONS.—The 
Director shall give a priority to applications that— 
(1) provide clear definitions of ‘‘financial lit-
eracy’’ and ‘‘financially literate’’ to clarify edu-
cational outcomes; 
(2) establish parameters for identifying the 
types of programs that most effectively reach young 
people and families in unique life situations and fi-
nancial 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 inde-
pendence and stability; and 
(6) establish professional development and de-
livery 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, 
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standards, definitions, and procedures as the Director de-
termines 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 fol-
lowing definitions shall apply: 
(1) DIRECTOR.—The term ‘‘Director’’ means 
the Director of the Bureau of Consumer Financial 
Protection. 
(2) ELIGIBLE INSTITUTION.—The term ‘‘eligi-
ble 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 
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meaning given such term in section 101 of the High-
er Education Act of 1965 (20 U.S.C. 1001(a)). 
Æ 
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