BILL ANALYSIS �
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THIRD READING
Bill No: SCR 15
Author: Lieu (D), et al.
Amended: 3/19/13
Vote: 21
SUBJECT : Financial Aid and Literacy Month
SOURCE : California Society of Certified Public Accountants
DIGEST : This resolution declares April 2013 as Financial Aid
and Literacy Month to raise public awareness about the need for
increased financial literacy.
Senate Floor Amendments of 3/19/13 make technical and clarifying
changes and add coauthors.
ANALYSIS : This resolution makes the following legislative
findings:
1. Studies reviewed by the Library of Congress indicate that
United States retail investors lack basic financial literacy,
including a weak grasp of elementary financial concepts and a
critical lack of knowledge of ways to avoid investment fraud.
2. 69% of parents expect their children to contribute
financially to their college education, and the same
percentage of parents expect that they or their children will
be paying student loans off for at least five years after
graduation. Outstanding student loan balances increased to
$956 billion as of September 2012, and the size of the
average student loan since 2005 has risen by 58% to $27,253,
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with a delinquency rate of 15.1%.
3. As of September 2012 about $1.01 trillion of American
consumer debt is delinquent, with $740 million seriously
delinquent. Also, 40% of low- and middle-income households
use credit cards to pay for basic living expenses such as
rent or mortgage bills, groceries, utilities, or insurance
because they did not have enough money in their checking or
savings accounts.
4. According to the 2012 Junior Achievement USA/Allstate
Foundation "Teens and Personal Finance" survey, 86% of
teenagers turn to their parents for money management advice,
and yet just 56% of them think they will be as financially
well-off or better than their parents. Furthermore, only 24%
of teenagers learn how to manage money from teachers.
This resolution declares April 2013 as Financial Aid and
Literacy Month to raise public awareness about the need for
increased financial literacy. Furthermore, encourages
legislators, employers, schools, service groups, community
organizations, libraries, financial institutions, and the media
to provide opportunities for financial literacy education for
all Californians through a variety of means and to collaborate
with members of the California Society of Certified Public
Accountants, the California Jump$tart Coalition, and others as
they provide outreach and education.
FISCAL EFFECT : Fiscal Com.: No
SUPPORT : (Verified 3/20/13)
California Society of Certified Public Accountants (source)
California Bankers Association
California Jump$tart Coalition
PQ:k 3/20/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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