California Governor Gavin Newsom is set to sign a bill requiring all high school students to take a personal finance course starting in the 2027-2028 school year. This mandate is a crucial step towards equipping the next generation of Californians with the financial literacy skills they need to thrive.
In a significant move to promote financial literacy among young adults, California is poised to implement a groundbreaking educational initiative. Governor Gavin Newsom is expected to sign into law a bill (AB 2927) that will require all high school students graduating in the class of 2030-2031 and beyond to take a semester-long personal finance course. This mandate will ensure that public high schools and charter schools in the state offer the course beginning in the 2027-2028 school year.
The bill, sponsored by Democratic State Rep. Kevin McCarty and co-authored by a bipartisan group of lawmakers, has garnered widespread support from the California State Legislature. Governor Newsom has hailed the initiative as a necessary step to prepare Californians for their financial futures.
Financial Education in the Golden State: California High Schoolers Set to Tackle Personal Finance
"Saving for the future, making investments, and spending wisely are lifelong skills that young adults need to learn before they start their careers, not after," Newsom said, emphasizing the importance of financial education from a young age.
The move aligns with the growing recognition that Gen Z, the generation born between the mid-1990s and early 2010s, faces unique financial challenges. A recent WalletHub survey revealed that Gen Z is the least financially confident generation, with 28% expressing a lack of confidence in their ability to manage money. They also face significant economic headwinds, such as rising costs of living and stagnant wages.
Financial Education in the Golden State: California High Schoolers Set to Tackle Personal Finance
In response to these challenges, California is joining a growing number of states that are implementing mandatory financial literacy courses in high schools. Several studies have shown that these courses effectively improve students' financial knowledge and decision-making skills.
An EverFi survey released in 2022 found that only 10% of surveyed high schoolers felt "prepared" or "very prepared" to "figure out the full costs of the colleges they were interested in attending." This lack of understanding can lead to financial difficulties later in life.
Financial Education in the Golden State: California High Schoolers Set to Tackle Personal Finance
The new law in California will address this knowledge gap by providing students with essential financial tools. The course will cover topics such as budgeting, investing, understanding credit, and managing risk. Students will also learn how to plan for major financial milestones, such as buying a house or saving for retirement.
This comprehensive approach to financial education will empower California's high school students with the knowledge and skills they need to make informed financial decisions throughout their lives. By equipping them with these essential tools, California is investing in the financial well-being of its future generations.
Financial Education in the Golden State: California High Schoolers Set to Tackle Personal Finance
