This bill has been amended

Bill S7344-2013

Relates to the development of a financial literacy education

Develops a financial literacy education program for teenagers and young adult participants in the summer youth employment program.

Details

Actions

  • May 21, 2014: 1ST REPORT CAL.912
  • May 13, 2014: REFERRED TO BANKS

Meetings

Calendars

Votes

VOTE: COMMITTEE VOTE: - Banks - May 21, 2014
Ayes (18): Griffo, Farley, DeFrancisco, Golden, Marchione, Martins, Marcellino, O'Mara, Ranzenhofer, Valesky, Avella, O'Brien, Breslin, Diaz, Parker, Sanders, Gipson, Kennedy
Ayes W/R (1): Bonacic

Memo

BILL NUMBER:S7344

TITLE OF BILL: An act to amend the financial services law, in relation to financial literacy education

PURPOSE OR GENERAL IDEA OF BILL: In order to strengthen the financial capability of our youth, this legislation establishes the Financial Literacy Education in the New York State Summer Youth Employment Program Act.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1: Legislative Intent

Section 2: The financial services law is amended by adding a new section 311 to read as follows: Any youth participating in the Summer Youth Employment Program shall be provided with financial literacy education workshop materials within the first two weeks of the program. The financial literacy education materials developed by banks and credit unions shall be used by the program in conjunction with banks and credit unions to provide financial literacy education workshop to all participating youth within the first two weeks of the program. This section also defines the Summer Youth Employment Program.

Section 3. This act shall take effect immediately.

JUSTIFICATION: In order to contribute to the State's and nation's future financial stability and increase upward economic mobility, it should be the policy of New York State Legislature to promote financial capability among its youth and encourage building the financial capability of young people at an early stage in schools, families, communities, and the workplace; such as the State's Youth Employment program. Each year and for thousands of youth, the summer youth employment program is their first exposure to a job and a paycheck. Engaging these youth in basic financial literacy instruction, such as creating a savings account, balancing their budget, and managing their disposable income is tremendously important.

By starting early, young people can begin to learn the difference between wants and needs, the importance and power of saving, and the positive and productive role money can play in their lives. Having a basic understanding of money management from an early age will make our young people better equipped to tackle more complex financial decisions in their transition to adulthood, when critical decisions about financing higher education and saving for retirement can have lasting consequences for financial security.

Strengthening the financial capability of our young people is an investment in our State's and nation's economic prosperity. Financial capability is the capacity, based on knowledge, skills, and access, to manage financial resources prudently and effectively. Efforts to improve financial capability, which should be based on evidence of effectiveness, empower individuals to make informed choices, plan and set goals, avoid pitfalls, know where to seek help, and take other actions to better their present and long-term financial well-being.

Therefore, in order to strengthen the financial capability of our youth it is important to establish the Financial Literacy Education in the New York State Summer Youth Employment Program.

PRIOR LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS: None. Local banks and credit unions as well as consumer groups have developed materials for all age groups on financial literacy. The collating of available materials is all that is required.

EFFECTIVE DATE: This act shall take effect immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 7344 IN SENATE May 13, 2014 ___________
Introduced by Sen. GRISANTI -- read twice and ordered printed, and when printed to be committed to the Committee on Banks AN ACT to amend the financial services law, in relation to financial literacy education THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Legislative intent. In order to contribute to the state's and the nation's future financial stability and increase upward economic mobility, it is the policy of the New York state legislature to promote financial capability among young Americans and encourage building the financial capability of young people at an early stage in schools, fami- lies, communities, and the workplace. By starting early, young people can begin to learn the difference between wants and needs, the importance and power of saving, and the positive and productive role money can play in their lives. Having a basic understanding of money management from an early age will make our young people better equipped to tackle more complex financial decisions in their transition to adulthood, when critical decisions about financ- ing higher education and saving for retirement can have lasting conse- quences for financial security. Strengthening the financial capability of our young people is an investment in our state's and our nation's economic prosperity. Financial capability is the capacity, based on knowledge, skills, and access, to manage financial resources prudently and effectively. Efforts to improve financial capability, which should be based on evidence of effectiveness, empower individuals to make informed choices, plan and set goals, avoid pitfalls, know where to seek help, and take other actions to better their present and long-term financial well-being. S 2. Short title. This act shall be known and may be cited as the "financial literacy education in the New York state youth employment program act". S 3. The financial services law is amended by adding a new section 311 to read as follows:
S 311. FINANCIAL LITERACY EDUCATION. (A) ANY YOUTH PARTICIPATING IN THE SUMMER YOUTH EMPLOYMENT PROGRAM SHALL BE PROVIDED WITH FINANCIAL LITERACY EDUCATION WORKSHOP MATERIALS WITHIN THE FIRST TWO WEEKS OF THE PROGRAM. (B) THE FINANCIAL LITERACY EDUCATION MATERIALS DEVELOPED BY BANKS AND CREDIT UNIONS SHALL BE USED BY THE SUMMER YOUTH EMPLOYMENT PROGRAM, IN CONJUNCTION WITH LOCAL BANKS AND CREDIT UNIONS, TO PROVIDE FINANCIAL LITERACY EDUCATION TO ALL PARTICIPATING YOUTH WITHIN THE FIRST TWO WEEKS OF THE PROGRAM. (C) FOR THE PURPOSES OF THIS SECTION, "SUMMER YOUTH EMPLOYMENT PROGRAM" SHALL MEAN ANY SUCH PROGRAM FUNDED THROUGH THE OFFICE OF TEMPO- RARY AND DISABILITY ASSISTANCE. S 4. This act shall take effect immediately.

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