Gov. Gavin Newsom emphasized the need to assist Californians in planning their future.
California high school students will be mandated to take financial literacy courses to graduate, thanks to a bill slated to be signed by Gov. Gavin Newsom.
AB 2927, co-authored by a group of bipartisan lawmakers and sponsored by Democratic State Rep. Kevin McCarthy, mandates that students graduating in the class of 2030-2031 take a semester-long course on personal finance. This means that public high schools and charter schools will be mandated to start the course in the 2027-2028 academic year.
According to Newson, “As early as possible, we must assist Californians in being financially ready for the future.” Young adults need to learn lifelong skills before they start their careers, not after. Saving for the future, investing, and spending responsibly are lifelong skills.
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According to a press release, Newson, Senate President pro-Tempore Mike McGuire, Assembly Speaker Robert Rivas, and HGPF Mission 2030, a national nonprofit that promotes financial literacy, have agreed to mandate that high school students take the course.
Regarding the bill’s success, McCarty stated that he is thrilled to know it will be enacted. He added, “I’m proud to be the lead author on this important policy and assist students make smart money decisions that will benefit them throughout their adult lives.” According to ABC 10 Sacramento, he appreciated Next Gen Finance, Gov. Newsom, Senate President pro Tempore McGuire, and Speaker Rivas for their leadership in making this happen.
This is in line with other findings, such as data from the WalletHub survey, which shows that Gen Z is the least financially confident generation. According to a study, 28% reported not budgeting, not being confident in their ability to manage money, and having doubts about ever becoming homeowners.
According to an EverFi survey in 2022, cited in ABC 10’s report, younger Americans lack financial confidence. Only 10% of high schoolers stated that they felt prepared or very prepared to determine the full costs of the colleges they were interested in attending.
Also, just a third of high school students thought they could “read and understand loan offers,” and less than half felt ready to complete the Free Application for Federal Student Aid (FAFSA).
Further research also revealed that less than half of high school students were certain they could “select, open, and manage” a checking or savings account or that they knew how to read a paycheck.
