California Governor Signs Personal Finance Education Bill, Guaranteeing Financial Literacy for High School Students

California Governor Gavin Newsom has just signed a groundbreaking bill that will revolutionize the way high school students in the state learn about personal finance. Assembly Bill 2927 guarantees that all California public high school students will have access to a standalone personal finance course by 2027, with completion of the course becoming a graduation requirement by 2031.

This new law, supported by leading education and business organizations, aims to equip young adults with essential financial skills before they enter the workforce or pursue higher education. Governor Newsom emphasized the importance of early financial education, stating, “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.”

Assemblymember Kevin McCarty, the author of AB 2927, highlighted the necessity of personal finance education, especially as young Californians face increasing financial decisions like credit card debt and student loans. He expressed pride in the bill’s passage, ensuring that all California students will benefit from a personal finance course.

State Superintendent of Public Instruction Tony Thurmond echoed the sentiment, emphasizing the importance of providing students with a clear understanding of personal finance to make informed financial choices and build stable futures. With California becoming the 26th state in the nation to guarantee a standalone personal finance course, the impact on future generations’ financial stability is expected to be significant.

The bill’s lead proponent, Tim Ranzetta of Next Gen Personal Finance, praised the legislation as a game-changer for individual students and the state as a whole. A recent report by Tyton Partners further supports the benefits of high school personal finance education, estimating a lifetime benefit of $127,000 for California students who take such a course.

With California lagging behind the rest of the nation in personal finance education, the enactment of the Personal Finance Education bill marks a significant step towards ensuring that all students have the necessary tools for financial independence and stability. The state’s commitment to financial literacy education positions it as a leader in preparing students for a successful financial future.