BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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                                    THIRD READING


          Bill No:  SCR 105
          Author:   Lieu (D)
          Amended:  As introduced
          Vote:     21


           SUBJECT  :    Financial Aid and Literacy Month

           SOURCE  :     Author


           DIGEST  :    This resolution declares the month of April 2014 as  
          Financial Aid and Literacy Month to raise public awareness about  
          the continuing need for increased financial literacy.

           ANALYSIS  :    This resolution makes the following legislative  
          findings:

          1.The final report of the President's Advisory Council on  
            Financial Capability (2013) urges the integration of personal  
            finance into the teaching of math and English language arts  
            Common Core State Standards for K-12 education as well as  
            other subjects.

          2.A 2013 College Savings Foundation survey of teenagers found  
            that 51% wished that their current high school offered  
            financial literacy instruction for them and their families to  
            prepare for college costs.  According to a 2013 Sallie  
            Mae/Ipsos study, only 27% of parents who are saving for  
            college use a 529 college savings plan.

          3.A 2013 survey by the National Foundation for Credit Counseling  
            and the Network Branded Prepaid Card Association found:
                                                                CONTINUED





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                 40% of American adults have a budget and are keeping  
               close track of their spending.
                 43% of Americans (100 million people) say they do not  
               have enough money saved for emergencies.

                 38% are worried that they will not have enough savings  
               for retirement.

                 78% of U.S. adults believe they could benefit from  
               professional advice regarding their financial questions.

          1.Forty percent of American adults gave themselves a grade of C  
            or less regarding their knowledge of personal finance  
            according to a 2013 study conducted on behalf of the National  
            Foundation for Credit Counseling.

          2.Approximately 61 million Americans are worried about paying  
            off their debt commitments, while 65% have not reviewed their  
            credit report, according to the study conducted on behalf of  
            the National Foundation for Credit Counseling.

          This resolution declares the month of April 2014 as Financial  
          Aid and Literacy Month to raise public awareness about the  
          continuing need for increased financial literacy; and 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.

           Related Legislation  

          AB 166 (Hernandez, Chapter 135, Statutes of 2013) requires that  
          financial education, including budgeting, managing credit,  
          student loans, consumer debt, and identity theft security, be  
          included in the next revision of the social sciences, health,  
          and mathematics curricula.

           FISCAL EFFECT  :    Fiscal Com.:  No

           SUPPORT  :   (Verified  4/8/14)







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          California Society of Certified Public Accountants


           ARGUMENTS IN SUPPORT  :    According to the author, "The teaching  
          of financial literacy skills is vital to equip the people of  
          California with the tools they need for economic stability."


          MW:e  4/9/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

                                   ****  END  ****