H.R. 10528: To amend the Financial Literacy and Education Improvement Act to include secondary schools in best practices for teaching financial literacy, and for other purposes.

This bill would change an existing federal financial literacy law so that it explicitly includes secondary schools—in other words, middle and high schools—when the government identifies and shares best practices for teaching financial literacy.

What would change

• The law currently focuses on financial literacy guidance for colleges and other institutions of higher education.
• This bill would add secondary schools to that framework, so federal best-practice guidance would also cover younger students.
• It would update a date in the law from May 24, 2018 to January 1, 2027.
• It would also make conforming wording changes so the law clearly applies to both colleges and secondary schools.

What kinds of topics would be included for secondary schools

The bill says the best practices for secondary schools should include guidance on teaching students how to:

• create a budget, track spending, and save for short-term and long-term goals;
• save and invest money, including learning about different kinds of financial securities;
• understand credit, including credit scores and responsible credit card use;
• think critically about financial products, make informed decisions, and avoid scams; and
• understand how to pay for college or other postsecondary education, including student loans, before they enroll.

What kinds of topics would remain for colleges

The bill also keeps and clarifies the kinds of best practices aimed at higher education, including guidance on how schools can help students understand:

• their total borrowing obligations and repayment options;
• how often and when to communicate with students about financial literacy;
• how to tailor information for different groups of students, such as part-time, first-time, and other nontraditional students; and
• how graduating affects a student’s ability to repay student loans.

Practical effect

In practical terms, the bill would not directly create a national financial literacy course. Instead, it would broaden the federal government’s guidance so that middle and high schools are included when schools and education agencies look to federal “best practices” for financial education.

Relevant Companies

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