BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SCR 15
                                                                  Page  1


          SENATE THIRD READING
          SCR 15 (Lieu)
          As Amended  April 17, 2013
          Majority vote 

           SENATE VOTE  :33-0  
           
           RULES               11-0                                        
           
           -------------------------------- 
          |Ayes:|Skinner, Wilk, Bigelow,   |
          |     |Brown, Chau, Donnelly,    |
          |     |Hagman, Cooley,           |
          |     |V. Manuel P�rez, Quirk,   |
          |     |Weber                     |
          |     |                          |
           -------------------------------- 
           SUMMARY  :  Declares April 2013 as Financial Aid and Literacy  
          Month to raise public awareness about the need for increased  
          financial literacy.  Specifically,  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)Sixty-nine percent 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, 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.









                                                                  SCR 15
                                                                  Page  2


          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.

           FISCAL EFFECT  :  None


           Analysis Prepared by  :    Mukhtar Ali / RLS. / (916) 319-2800 


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