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SR-27 (2021-2022)



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SR27:v98#DOCUMENT

Enrolled  May 06, 2021
Passed  IN  Senate  May 03, 2021

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Senate Resolution
No. 27


Introduced by Senator Limón

April 12, 2021


Relative to Financial Capability Month.


LEGISLATIVE COUNSEL'S DIGEST


SR 27, Limón.

WHEREAS, The Legislature passed Assembly Bill 2546 (2016), which helps make financial literacy in the classroom a reality for California’s schoolage children; and
WHEREAS, The State Department of Education acknowledges that young people need to be equipped with the skills and knowledge that allow them to be savvy consumers and competent managers of their own finances; and
WHEREAS, A lack of financial capability has real consequences for individuals, including lower savings rates, poor credit, and less wealth overall; and
WHEREAS, A survey of individuals 15 years of age in the United States, conducted by the Organisation for Economic Co-operation and Development, found that 18 percent of respondents did not learn fundamental financial skills that are often applied in everyday situations, such as building a simple budget, comparison shopping, and understanding an invoice; and
WHEREAS, According to an Organisation for Economic Co-operation and Development study, more than 1 in 6 students in the United States do not reach the baseline level of proficiency in financial literacy; and
WHEREAS, An EVERFI survey of over 100,000 incoming college students found that 92 percent of students felt “they needed more education, information, and/or support to be able to pay off their college loan.”; and
WHEREAS, According to Experian, 49 percent of Generation Z consumers surveyed said that they found financial topics to be somewhat interesting or interesting and 11 percent of them even said they loved learning about them; and
WHEREAS, The International Review of Economics Education published a paper titled “The Features and Effectiveness of the Keys to Financial Success Curriculum”, which found one-semester financial literacy programs taught by trained teachers were found to increase high school students’ financial knowledge by 61 percent, and was most effective in improving knowledge in the areas that the students were most deficient; and
WHEREAS, A study from Montana State University found that high school financial education leads to better financial aid decisions once these students reach college, increases subsidized borrowing at advantageous federal rates, and decreases use of more costly forms of borrowing, including credit cards and private loans; and
WHEREAS, Financial literacy rates directly affect the financial health of individuals, families, communities, and the country; and
WHEREAS, Resolutions similar to this resolution have been introduced and passed with strong bipartisan support to increase awareness of the need for financial capability for California citizens; now, therefore, be it
Resolved by the Senate of the State of California, That the Senate hereby recognizes and declares the month of April 2021, as Financial Capability Month, in order to raise public awareness about the need for increased financial capability; and be it further;
Resolved, That the Secretary of the Senate transmit copies of this resolution to the author for appropriate distribution.