California
California will require high school students to take financial literacy classes starting in the 2027 school year under Assembly Bill 2927
Sacramento, California – Aiming to equip high school students with vital money management skills before they graduate, California is planning to adopt mandatory financial literacy classes in a major step towards improving practical education. Following the recent approval of Assembly Bill 2927, a personal finance course will be a graduation requirement starting in the 2027 school year.
Local legislators and teachers think this program will provide young people with necessary knowledge on reasonable spending, saving, and investment. Dan Roccato, a University of San Diego clinical professor of finance, underlined the value of such training.
“That’s good news, I don’t know about you, but I could have used a financial literacy class in school,” Dan Roccato said.
Roccato also highlighted the wider consequences of financial stress, noting that money is always the main stressor based on polls. Money is the third reason for divorce; hence, if we can fix a small portion of that, it will be beneficial.
Working with the non-profit Next Gen Personal Finance and California legislators, the law was developed to clearly meet a demand for improved financial education. Roccato quoted alarming data backing this action.
“Americans are great consumers, we’re great at spending,” Roccato said. “But on the other end, a new study shows 66 percent of Americans are financially illiterate and can’t answer basic questions about money management. 71 percent say money causes them anxiety and 22 percent couldn’t pay all of their bills last month.”
Involved in curriculum development, Matt Hayes of the San Diego County Office of Education expressed his excitement about the good results of this project. Starting adulthood with those abilities, Hayes said, will help students greatly and that the program covers everything from budgeting and credit use to knowledge of how banks operate and paying college.
A new WalletHub study shows that financial confidence among Gen Z, individuals born between 1997 and 2012, is unusually low during the time this legislative change is taking place. Roccato underlined that three fundamental ideas should be the main emphasis of the course: budgeting, saving, and judicious use of credit.
“It means better loans, higher pay, saving on taxes, the healthier the consumer we have, the healthier the economy we’re going to get. No question,” he said.
Roccato wrapped up his thoughts with a simple yet profound adage, “Right-size your life. That means you want to match your income to your way of life. Aiming to equip the next generation with the tools required for a safe economic future, this new demand makes California the 26th state to adopt such a policy. This will help to prepare for financial issues ahead.
