Treyger Bill Encouraging Financial Literacy In Young Adults Signed Into Law

A new bill requiring the city to provide financial outreach and education to young adults was signed into law by Mayor Bill de Blasio on Monday, March 30.

The legislation was sponsored by Councilman Treyger after he witnessed first-hand as a public school teacher the aggressive marketing tactics that banks and credit card companies use to target teenagers and young adults.

“With our teenagers and young adults being targeted by financial institutions like never before, we must give them the knowledge to make smart decisions with their money. These decisions will have a long term impact on their financial health and on their ability to get ahead in life, so we must help them understand the ramifications of taking on loans and the benefits of responsibly building credit,” said Treyger. “This bill will ensure that we inform and empower the next generation of New Yorkers to avoid serious financial pitfalls and build a strong foundation for the future.”

The new law requires the Department of Consumer Affairs to provide education related to consumer protection issues to young adults ages 16 to 24. Educational materials related to consumer products commonly available to young adults – such as student loans and credit cards – must be made available at public schools and CUNY schools, as well as online, to ensure young adults are financially literate.

The bill was approved by the City Council during the Stated Meeting on March 11.

In his remarks at Monday’s bill signing ceremony, Treyger noted that, as of last September, consumer debts excluding home loans reached an all-time high of $3.2 trillion, and that the graduating class of 2014 is the most indebted class ever – as was the class before them, and the figure is expected to be surpassed by the class of 2015.

Meanwhile, banks and credit companies continue to aggressively market to young adults, with the percentage of college students with credit card debt approaching 90 percent, and more than half holding more than four credit cards.

This legislation is intended to help provide the city’s teenagers and young adults with the knowledge needed to make smart decisions that will not have a detrimental impact on their financial health later in life.