California Students Required to Take Financial Literacy Courses

For many people, financial literacy has become a crucial aspect of adulthood. Not having been taught the most important parts of living life as a working adult has caused many adults to advocate for financial literacy to be a required part of the public school experience. ABC 10 reported that this is finally becoming a reality for the future of young students.

California high school students will soon need to take a financial literacy course to graduate. Governor Gavin Newsom is expected to sign AB 2927, which mandates a semester-long personal finance education course to be offered by the 2027-28 school year and required for graduation starting with the class of 2030-31.

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Once this legislation is passed, proponents of the California Personal Finance Education Act initiative for the November 2024 ballot will withdraw their measure.

A survey by EverFi during the 2020-2021 school year found low levels of financial understanding among high school juniors and seniors nationwide. The survey revealed that only 27% felt ready to estimate their monthly payments after college, 46% felt prepared to complete the FAFSA, 32% felt capable of understanding loan offers and repayment information, and 47% understood how to read a paycheck and determine net pay.

Senate President pro-Tempore Mike McGuire emphasized the long-term benefits of financial literacy, citing improved credit scores, reduced default rates, increased likelihood of maintaining emergency savings and having a retirement account. “Financial literacy is a critical tool that pays dividends for a lifetime,” he said.

Assemblymember Kevin McCarty, who introduced the legislation, expressed his gratitude for the collaborative effort in bringing the bill to law. “After years of championing financial literacy for California students and authoring legislation to make personal finance a required high school course, I’m thrilled that our AB 2927 is on the Governor’s desk and will be signed into law,” McCarty said. He thanked Next Gen Personal Finance, Governor Newsom, Speaker Rivas, and Senate President pro Tempore McGuire for their leadership in making this happen.

This new requirement aims to help students make informed financial decisions throughout their adult lives, addressing the significant need for financial education in high schools.

Noumaan Faiz, (he/him) is a journalist and entertainer from Corona, CA who covers culture and entertainment.

Edited by Nykeya Woods