In the News

U.S. Rep. David Valadao (R-CA) sponsored bipartisan legislation this week that aims to help high school students across America navigate the nation’s financial system by giving them access to resources that can help them make informed financial decisions.

The Promoting Financial Literacy in Secondary Schools Act, H.R. 10528, which is cosponsored by U.S. Rep. Brittany Pettersen (D-CO), would amend the Financial Literacy and Education Improvement Act to include secondary schools in best practices for teaching financial literacy.

“Filing taxes, managing a budget, building savings, and understanding credit are all important life skills, yet too many students graduate high school without the financial knowledge they need to make informed decisions,” Rep. Valadao said. “Instead of trying to navigate a complicated financial system on their own, students should have a strong foundation in financial literacy.”

If enacted, the congressman said that H.R. 10528 “would give students these critical tools before they graduate and help prepare the next generation for success — whether they choose to attend college, pursue a trade, or enter the workforce.”

The Financial Literacy and Education Commission (FLEC) within the U.S. Department of the Treasury is tasked with creating best practices for teaching financial literacy. Currently, FLEC only creates guidance for institutions of higher education. 

H.R. 10528 would require FLEC to include high schools when creating best practices for students about budgeting, financial securities, credit, evaluating financial products, and student loan borrowing.

Nothing in the bill would require schools to adopt the best practices; they would be voluntary, according to a bill summary provided by Rep. Valadao’s staff.

“Too many young people enter adulthood without anyone ever teaching them how to build credit, manage a budget, or protect themselves from financial decisions that could follow them for years,” said Rep. Pettersen, who added that the bill “will help high schools better prepare our young people to achieve financial security, avoid costly mistakes, and set themselves up for success in the long run.”

The measure has been referred for consideration to both the U.S. House Financial Services Committee and the U.S. House Education and the Workforce Committee.