This measure represented a much-needed commitment by the state to start addressing the root causes of personal and state economic struggles precipitated by a lack of financial education. Through the establishment of a dedicated Financial Literacy Advocate and a Financial Literacy Advisory Committee, this bill codifed the state’s financial interest in reducing consumer debt, bolstering savings, and deterring financial predicaments like those evident in the current foreclosure crisis. It created an information warehouse where Californians can turn for answers on basic financial questions and for referral to other, more specific resources close to home. Finally, the bill established the Financial Services Corps, a dedicated cadre of financial planner volunteers committed to helping low and middle-income Californians make sound financial decisions.

View the New America April 2008 press release on the initiative here. To find out more about this policy area, see our Increase Access to Banking Services & Financial Education page.

Status:
This bill was vetoed by Gov. Schwarzenegger on November 30, 2008. Text is at right under 'Related Files.' A similar bill, AB 550, was again supported by New America in the 2009 session.