TAP 03-006

Financial Literacy

Statement of Issue:

Financial literacy among America 's youth is a national issue. For example, Federal Reserve Chairman Alan Greenspan recently launched a national campaign for financial literacy of our youth. Chairman Greenspan points to a number of factors that indicate financial literacy is inadequate. Several committees from the TAP have identified understanding the tax filing process as key to financial literacy.

Proposal:

The Internal Revenue Service (IRS) has a number of resources that would support educational efforts for financial literacy, i.e., the IRS website (www.irs.gov). This website contains both teacher lesson plans and student tutorials. It is our opinion that there is a disconnect between the resources available from the IRS and the education provided to the youth. A national effort should be initiated to bridge this gap.

Response Notes:

Letter stated on-going activities and information on IRS and TAS personnel that are currently working issue. Also advised TAP to continue working with the IRS abut the specific issue of financial education about taxes for high school students and work towards specific proposals for IRS to consider.