California High Schools Will Soon Offer Financial Literacy Classes
by Nahlah Abdur-Rahman
July 1, 2024
The course will be required for students to graduate by the 2030-31 school year.
California high schools will be adding a new required course to their curriculum. Gov. Gavin Newsom intends to sign into law that all state high schools must offer financial literacy classes by 2027.
The law, AB 2927, would introduce a new semester-long class on personal finance education and require all California high schools to have it by the 2027-28 school year, according to 11Alive.
The governor’s office revealed Newsom’s intentions to sign the bill into law on June 27. He made an official statement on his website confirming the news.
“We need to help Californians prepare for their financial futures as early as possible. 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,” shared Newsom.
Newsom also made the announcement with Senate President pro Tempore Mike McGuire and Assembly Speaker Robert Rivas. National financial literacy nonprofit, NGPF Mission 2030, also supported the measure.
“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 McGuire.
Moreover, the law would make the course a requirement for graduation by the 2030-31 academic year. Kevin McCarty, who originally introduced the bill, also shared his excitement for its passing.
“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,” explained 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.”
Financial literacy remains low among U.S. adults, especially for Black Americans. According to TIAA, Black people on average only answered 38% of questions on the Personal Finance Index correctly. The imminent passing of AB2927 for California hopes to ensure future generations gain the financial literacy needed for success.
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