Future high schoolers in California will soon be mandated to complete a financial literacy class to graduate, the governor’s office said.
A bill introduced by State Rep. Kevin McCarty (D) and supported by a bipartisan group of several Republicans and Democrats aims to place a semester-long personal finance class in the curriculum by the 2027-2028 school year and to make it required starting with the class of 2030-2031.
AB 2927 would appropriate $300,000 from the California’s General Fund to develop and recommend a curriculum to the state board to then be adopted by schools around the state.
Gov. Gavin Newsom (D) announced his support for the plan on Thursday.
“We need to help Californians prepare for their financial futures as early as possible,” he said in a statement. “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 move was also celebrated by Senate President Pro Tempore Mike McGuire (D), who said “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,” McGuire added.
Assembly Speaker Robert Rivas (D) added that the bill’s text “is the culmination of many robust and productive conversations with stakeholders across the state on how best to implement financial literacy into every student’s high school curriculum.”
Assemblymember McCarty, who introduced the legislation on the assembly floor, said financial literacy skills are “critically important for young people.”
“After two years of championing for personal finance for students, I’m thrilled #AB2927 is now on the Gov’s desk & will be signed into law,” he wrote on X. “Proud to be the lead author on this important policy & help students make smart money decisions that will benefit them throughout their lives”:
Meanwhile, State Senate Minority Leader Brian W. Jones (R) pointed out the irony in Newsom’s own financial policies.
“If only Newsom and his Democrat [Politician] buddies had to take a financial literacy course, perhaps California wouldn’t be facing a $62 billion budget deficit,” the Republican wrote on X: