Building a Foundation of Financial Literacy

From deciding whether to spend an allowance, to choosing a university and putting a down payment on a house, no matter what stage of life we are in, we are required to make financial decisions. As a co-Chair of the Financial and Economic Literacy Caucus with Congresswoman Joyce Beatty (D-OH), it is one of my top priorities to work across the aisle to improve the financial literacy and economic education of all individuals across the United States.

At home, I have worked to instill the value of responsibly managing money with my two kids. Exercises like saving money in a piggy bank can teach them the importance of saving money at a young age, so they have a foundation as they go to high school and college. However, I also believe that our institutions of higher learning need more resources to help our nations’ students make better decisions that will set the on a path to be self-sufficient.

To help address this issue, I recently joined Congresswoman Beatty to introduce bipartisan legislation called the Financial Literacy College Education Act. This bill will help students by requiring the Financial Literacy and Education Commission to establish best practices for colleges and universities in teaching financial literacy skills. This would especially be focused on student loans, where the Commission would provide methods for institutions to ensure students clearly understand their obligations for monthly payments and repayment options available to them. This is just one small way we can help ensure universities have the tools they need to give helpful advice to their students.

For some, borrowing money is the best option to help pay for college; however, recent graduates can often find themselves in financial trouble trying to pay loans back at entry-level salaries. That is why last year, I introduced bipartisan legislation to allow students to receive benefits from an employer student loan repayment program without the additional taxes on their paychecks. Moreover, this bill allows more individuals and married couples to deduct their student loan interest each year as they earn more. While we still need to address the larger issue of the growing costs of higher education, this is one way we can help our current students keep more of their hard-earned pay. 

This April, Congresswoman Beatty and I have been recognizing Financial Literacy Month by sharing some of the resources to help people of all ages improve their financial literacy. Whether you are a student, recent graduate, parent, or just someone who needs more assistance managing finances, I encourage you to visit https://financialandeconomicliteracycaucus-stivers.house.gov/ to learn more about the resources available to you.

If you have any questions, or need additional guidance on these resources, I invite you to contact my Washington, D.C. office at (202) 225-2015, Hilliard office at (614) 771-4968, Wilmington office at (937) 283-7049 or Lancaster office at (740) 654-2654.

-30-