The federal government wants us all to get smarter about how we spend and save our money. So, a new Office of Financial Literacy – part of the newly-signed financial reform bill – will develop programs meant to educate the American public on savings and loans.

The office is expected to create standards for financial advice programs and to help people find ways to avoid financial scams. Financial literacy is being promoted separately by other groups, too. The LendingTree Foundation, for example, is a recently-created non-profit organization that provides counseling to families in financial turmoil.

In Washington, D.C., Michael Barr, Assistant Secretary for Financial Institutions, told us in a phone press conference yesterday that the government’s financial literacy outreach is meant to help “individuals take the necessary steps to make themselves better educated about what it means to save and borrow, and to conduct the basic transactions in life.”

The attention on …

The U.S. Senate approved a major overhaul of the country’s financial sector regulations with the goal of providing greater protections to consumers. The legislation, which passed on Thursday, will now be reconciled and merged with the House’s December version. Here are some of the key points that may be of interest to consumers and borrowers:

The Senate version calls for the creation of a Bureau of Consumer Protection within the Federal Reserve. This Bureau would aim to curb abusive lending practices with powers to oversee a wide range of consumer financial products.

Conditions for borrowers will be tightened. For example, buyers will be required to provide more detailed information on their income to ensure they can pay their mortgage.

Conditions for lenders will be tightened. Brokers won’t be able to make a profit by getting borrowers to take on loans considered to be riskier.  Instead, commissions will …