The mission of the CalMoneySmart program is to provide financial education and empowerment programs and services to unbanked and underbanked Californians. Initiated by Governor Gavin Newsom with the signing of Senate Bill 455 in 2019, the program emphasizes assisting disproportionately affected low-income, educationally disadvantaged populations, including Black and Hispanic households, single mothers, disabled adults, and immigrants. CalMoneySmart aims to improve financial stability, consumer protection, and wealth generation through education and financial empowerment, backed by an increased Financial Empowerment Fund for sustainable grant funding to community-based nonprofits.
The CalMoneySmart grant program offers up to $200,000 annually to nonprofit organizations focused on delivering financial education and empowerment services. Its principal goal is to address the needs of unbanked and underbanked populations in California, fostering financial inclusion, improving credit, increasing savings, and reducing debt through targeted financial education programs. Grants support a variety of initiatives, including the development and provision of classroom or web-based financial education, individualized financial coaching, and the creation and offering of free financial products or services aimed at increasing access to responsible financial products. All funded projects are required to enhance economic security, adhere to the Consumer Financial Protection Bureau's Five Principles of Effective Financial Education, and meet community-specific needs while simplifying decision-making and action-taking for consumers. Starting in the 2024-25 fiscal year, the grant application process will shift to a biennial cycle, allowing organizations to secure funding for two consecutive years, thereby enhancing their capacity for sustained impact.