Sponsored by:
Senator OWEN HENRY
District 12 (Burlington, Middlesex, Monmouth and Ocean)
SYNOPSIS
Provides grants to nonprofit organizations that provide financial literacy classes; appropriates $100,000.
CURRENT VERSION OF TEXT
As introduced.
An Act establishing grants to financial nonprofit organizations that provide financial literacy education.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. As used in this act:
Commissioner means the Commissioner of Banking and Insurance.
Financial education courses means any on-line or in-person education module, any comprehensive set of videos, or any self-guided learning tool which provides education on personal finance topics as defined by this bill.
Financial nonprofit organizations means any 501(c)(3) or similarly certified organization whose primary focus is providing consumer financial counseling, debt management, or financial literacy programs.
2. The Legislature finds and declares that having the knowledge and capability to manage personal finances enables citizens to make better financial decisions and creates a foundation for long-term stability at both home and the workplace. The ability to develop a personal budget, manage debt, create savings, along with the understanding how to finance large purchases such a residence or an automobile, provides an important knowledge base and can be the catalyst to the removal of barriers which prevent a fuller participation in the economy. However, there is a shortage of availability of personal finance classes within public schools, post-secondary education, and adult education.
It is fitting for New Jersey to address this shortfall by providing grants to nonprofit organizations to develop, organize, and provide classes in financial literacy.
3. a. The Commissioner of Banking and Insurance shall establish a program providing grants to nonprofit organization to develop, organize, and provide classes in financial literacy.
b. A nonprofit organization participating in the grant program shall provide classes on topics that include, but are not limited to, developing a budget, establishing credit and the responsible use of credit cards, understanding automobile and mortgage loans, personal taxes, introduction to investing in fixed incomes (securities) and equities (stocks) as well as other personal finance topics as proposed by the organizations.
c. The commissioner shall provide grants of up to $5,000 for financial nonprofit organizations to develop and provide personal finance courses within the high school, college, and adult education communities. The goal of the programs is to broaden the reach of financial education.
The commissioner shall establish an application process and evaluation criteria upon which to determine the successful applicants.
4. There is appropriated from the General Fund $100,000 to effectuate the purposes of this act.
5. This act shall take effect on the first day of the seventh month next following the date of enactment and the Commissioner of Banking and Insurance may take such anticipatory administrative action in advance thereof as shall be necessary for the implementation of the act, and shall expire one year following the expenditure of all funds appropriated for the purposes of this act.
STATEMENT
This bill requires the Commissioner of Banking and Insurance to establish a program to provide grants to nonprofit organizations that provide financial literacy classes.
Many citizens have limited knowledge in the concepts of personal budgeting, investing, and managing debt. This lack of knowledge can hinder their abilities to secure credit for major purchases and save for retirement.
The bill addresses the lack of opportunities for education in personal finance by creating a grant program for financial nonprofits to develop and provide personal finance courses, with the goal of broadening the reach of financial education. Individual grants under the program are capped at $5,000.
The bill appropriates $100,000 from the General Fund.