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California Assemblymember Phillip Chen (R-Yorba Linda)
California Assemblymember Phillip Chen (R-Yorba Linda)

‘Financial Capability Month’ Introduction Coming to the Floor

Assembly Concurrent Resolution 34 (ACR 34) — recently introduced in the California State Assembly — would declare April 2023 as Financial Capability Month in the state.

Assemblymember Phillip Chen (R-Yorba Linda) worked with the California Credit Union League to introduce this resolution to spread awareness about the importance of financial literacy. Chen serves as vice chair of the Assembly Banking and Finance Committee and has been a great friend of credit unions.

He plans on presenting ACR 34 on the assembly floor on April 10 during the League’s California Government Relations Rally (GRR). The California GRR (April 10 – 11) is a great opportunity to connect with state lawmakers to discuss various bills in the state legislature that will impact credit unions!

ACR 34, as introduced, states the following:

  • This measure would designate the month of April 2023 as Financial Capability Month.
  • 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 Organization 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 Organization for Economic Co-operation and Development study, more than one in six 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 Assembly of the State of California, the Senate thereof concurring, That the Legislature hereby recognizes and declares the month of April 2023 as Financial Capability Month in order to raise public awareness about the need for increased financial capability; and be it further
  • Resolved, That the Chief Clerk of the Assembly transmit copies of this resolution to the author for appropriate distribution.

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