California is Now the 26th State to Mandate Personal Finance Education in High Schools

Another state has officially joined the push to require personal finance education in high school.

Assembly Bill 2927, which mandates that all California high school students receive instruction in personal finance, was signed into law by Governor Gavin Newsom on Tuesday.

California is now the 26th state to require high school students to take a stand-alone personal finance course thanks to this historic legislative achievement. Prominent business and education groups endorsed the bill, which was unanimously supported by both the Senate and the Assembly.

By 2027, all California public high school students will have access to a course specifically on personal finance thanks to a new law. By 2031, completing a course on personal finance will be necessary to graduate.

Because of the California law, 64% of students in the country will now attend schools where a personal finance course is required or will soon be required.

“We need to help Californians prepare for their financial futures as early as possible,” Governor Newsom emphasized in a statement published Tuesday by Californians for Financial Education. “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.”

The bill’s author, Assemblymember Kevin McCarty, emphasized the difficulties that young people without financial literacy encounter when they enter higher education and the workforce.

“This is at a time when they’re being hounded by credit card ads and student loan applications,” McCarty stressed. “Personal finance equips youth to make informed decisions about saving, investing, and managing debt, leading to better financial stability in adulthood.”

The advantages of financial education are emphasized in a report recently released by Tyton Partners and Next Gen Personal Finance, titled “Investing in Tomorrow: Lifetime Value of Financial Education in High School.”

According to the study, California students who apply the lessons they learn in a high school personal finance course could benefit $127,000 throughout their lifetime from establishing their credit record to starting personal savings, setting up a retirement fund, and reaching other financial milestones.

It also implies that teaching people about personal finance can have a good impact on a state’s economic growth and the financial future of its citizens.

In terms of personal finance education, California currently lags behind the national average. Compared to 53 percent of high school students nationwide, less than one percent of Californian students are required to take a personal finance course.

“Our young people need and deserve a clear understanding of personal finance so that they can make educated financial choices and build stable, successful futures for themselves and their future families,” noted State Superintendent of Public Instruction Tony Thurmond.

“By adding personal finance to our high school graduation requirements, we acknowledge that managing household finances and building financial stability are essential life skills,” he said.

House Bill 2158, which was introduced in May, solidified the national trend of requiring personal finance education for high school students in Oklahoma. The requirement is scheduled to go into effect on July 1 of the next year.