California Assemblymember Ted Lieu (D – Torrance) introduced legislation aimed towards helping residents of his state become more financially knowledgeable this week.
Assembly Bill (AB) 2123 was introduced in response to the growing number of people making devastating financial decisions due to inadequate education, resulting in such financial catastrophes as the mortgage crisis and plummeting credit scores.
“We need to ensure that our citizens are educated on the responsible use and basic concepts of personal finances,” said Assemblymember Lieu. “This bill would allow better access to programs designed to help make better educated decisions before committing to these offers.”

The bill would require the State Controller to establish the Office of Financial Literacy Advocate and to create the California Financial Literacy Initiative. It would also allow the Controller to collect donations from non-profit organizations to help fund these programs.
The bill would create programs to assist low and middle income persons with such tasks as credit card applications, opening bank accounts and understanding credit scores with a team of professionals in assisting them to make financially sound decisions. These programs will be administered through the Office of the State Controller and will be made available via the internet or phone.
“Financial literacy information is out there, but it is not always easily accessible,” California State Controller John Chiang said. “[It] will help empower California consumers by providing a one-stop shop for basic financial information on credit scores, credit card applications, bank account and interest rates, and how to avoid a financial crisis.”
The majority of California credit unions offer or take an active role in developing these educational programs, stated California Credit Union League CEO, Bill Cheney.
“Providing financial literacy to all ages strengthens the community as a whole and therefore the future of California’s economy,” Cheney added.
This bill will be heard in policy committee meetings in the next few months.