CBA Announces Sponsorship of Legislative Measure to Advance Financial Education Through School-Based Savings Programs
SACRAMENTO — The California Bankers Association (CBA) announced today its sponsorship of Assembly Bill 1784 (Dababneh, D – Encino), which will further advance financial education through school-based savings programs that help students learn the importance of saving and personal financial management.
School-based bank savings programs are a collaborative effort between banks and elementary, middle and high school administrators and teachers. These programs vary from “mini banks” that offer student savings accounts to more complex programs that also offer career-oriented banker training. The programs are intended to help students understand the value of saving by opening and managing savings accounts. Many school-based bank savings programs provide other financial education activities through presentations, classes, and curriculum development in coordination with the school faculty and administration.
National banks and California savings associations are already authorized to participate in school-based savings programs. However, current California law prevents state-chartered banks from engaging in these programs because a branch must formally be established at each participating school.
AB 1784 amends state law so that a school-based bank savings program is not considered a branch office provided that the bank does not establish and operate the school premises or facility on which the financial literacy program is conducted; bank employees work at the site only to participate in the program; no services are provided to the general public; and the principal purpose of the financial literacy program is educational.
California’s banking community strongly supports teaching students the fundamentals of personal finance and saving,” said Rodney Brown, CBA’s president and CEO. “We appreciate Assembly Member Dababneh’s authoring of this legislative fix to ensure that all California banks have the opportunity to participate in this important financial education opportunity.”
About the California Bankers Association (CBA)
Established 125 years ago, the California Bankers Association (CBA) is one of the largest state banking trade associations in the country. CBA leads the way in developing relevant legislative and educational solutions to some of California’s more pressing financial and banking issues, including financial empowerment, identity theft, financial privacy, and financial elder abuse. CBA’s membership includes the majority of California’s commercial, industrial and community banks and savings associations. For more information, visit www.calbankers.com.