Personal Finance News
California Personal Finance Education Bill Signed Into Law
The state of California will soon be rolling out a financial literacy course as part of its high school curriculum.
About the bill:
California Governor Gavin Newsom has signed Assembly Bill 2927 — better known as the Personal Finance Education bill — into law. This follows the bill’s passage in the state Senate and Assembly last week, where it saw unanimous bipartisan support.
Currently, less than 1% of California students are guaranteed to have a financial literacy course in high school. Under the new law, public high school students in the Golden State will have access to a stand-alone personal finance course by 2027. Then, by 2031, completion of the course will become a requirement for graduation. With California being the 26th state to offer such a course, a reported 64% of students nationwide are currently required or will soon be required to take a personal finance course as part of their public education.
According to a recent report titled “Investing in Tomorrow: Lifetime Value of Financial Education in High School,” the average per-student lifetime benefit of this personal finance course requirement is expected to be $127,000. These figures factor in reduced credit card debt costs, reduced borrowing costs for home and auto loans, retirement savings benefits, and more.
What they’re saying:
In a statement about the bill’s signing, Governor Newsom said, “We need to help Californians prepare for their financial futures as early as possible. 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.”
Additionally, State Superintendent of Public Instruction Tony Thurmond remarked, “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. By adding personal finance to our high school graduation requirements, we acknowledge that managing household finances and building financial stability are essential life skills.”
Thurmond added, “Every child should have the opportunity to build these essential skills before navigating adult financial choices, not just those who happen to have the opportunity to learn these concepts at home or through an elective.”
My thoughts:
It’s truly awesome that, soon, a majority of states will make personal finance a part of their public education. Moreover, seeing the overwhelming (and nonpartisan) support this particular bill received, there’s reason to believe that even more states could join the list in the years ahead.
What’s also exciting is that, as more high schoolers learn about personal finance, they might inspire new tools and programs for helping subsequent students. In time, this could have a huge impact on the lives of these individuals as well as the overall economy.
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