SACRAMENTO, Calif. — California high schoolers will soon be required to take a financial literacy course to graduate.
The governor’s office says Gavin Newsom is expected to sign AB 2927, which would require a semester-long personal finance education course to be offered by the 2027-28 school year and make it a requirement to graduate starting with the class of 2030-31.
Once the legislation is passed, people pushing the California Personal Finance Education Act initiative for the November 2024 ballot will withdraw their measure.
During the 2020-2021 school year, EverFi surveyed thousands of high school juniors and seniors nationwide and found surprisingly low levels of financial understanding.
The survey found, in part:
- 27% reported being ready to estimate what their monthly payments might be after college
- 46% felt prepared to complete the Free Application for Federal Student Aid (FAFSA)
- 32% felt that they could read and understand loan offers and repayment information they received
- 47% of students understood how to read a paycheck and understand what determines net pay.
“Financial literacy is a critical tool that pays dividends for a lifetime. There’s a wealth of data about the benefits of learning these valuable lessons in high school, from improving credit scores and reducing default rates to increasing the likelihood that our future generations will maintain three months of savings for emergencies and have at least one kind of retirement account,” said Senate President pro-Tempore Mike McGuire (D-North Coast).
Assemblymember Kevin McCarty, who introduced the legislation, thanked everyone involved with taking 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,” said Kevin McCarty. “I’m proud to be the lead author on this important policy and help students make smart money decisions that will benefit them throughout their adult lives. I want to thank Next Gen Personal Finance, Governor Newsom, Speaker Rivas, and Senate President pro Tempore McGuire, for their leadership in making this happen.”