SACRAMENTO, Calif. — California high school students will soon need to complete a financial literacy course to graduate, thanks to new legislation set to be signed by Governor Gavin Newsom.
Key Details:
- Course Implementation: Required by the 2027-28 school year.
- Graduation Requirement: Effective starting with the class of 2030-31.
- Survey Findings: Low financial literacy among high school juniors and seniors.
Governor Gavin Newsom is expected to sign AB 2927, a bill mandating a semester-long personal finance education course for high school students, starting with the 2027-28 school year.
This course will become a graduation requirement for the class of 2030-31. The initiative aims to address the worrying findings from a 2020-2021 EverFi survey, which revealed that many students lacked basic financial understanding.
For example, only 27% could estimate their post-college monthly payments, and just 46% felt ready to complete the FAFSA.
“Financial literacy is a critical tool that pays dividends for a lifetime,” stated Senate President pro-Tempore Mike McGuire. “Learning these valuable lessons in high school can improve credit scores, reduce default rates, and increase the likelihood of maintaining savings and retirement accounts.”
Assemblymember Kevin McCarty, who introduced the bill, expressed his gratitude: “I’m thrilled that our AB 2927 is on the Governor’s desk and will be signed into law. This important policy will help students make smart money decisions that will benefit them throughout their adult lives.”
This new mandate underscores California’s commitment to equipping students with essential life skills.
As financial literacy becomes a crucial part of the curriculum, future generations will be better prepared to manage their finances, contributing to a more financially stable society.
This initiative is a significant step forward for the Indian and South Asian communities in the US, ensuring their children receive vital financial education.
