California high school students will soon learn about budgeting, credit scores, and investing as part of a new graduation requirement. Governor Gavin Newsom recently signed a bill into law that makes personal finance a mandatory course for the class of 2031 and beyond. Starting in the 2027-28 school year, all high schools must offer a semester-long personal finance course.
Students can take this class in place of economics, which is currently a graduation requirement. Assemblymember Kevin McCarty, the bill’s main sponsor, believes this course will help students make smart money decisions that will benefit them throughout their adult lives. “This is a time where young people are bombarded with credit card offers which can lead to thousands of dollars in debt,” he said.
The curriculum will cover topics such as personal banking, financing college and career options, understanding taxes, consumer protection skills, and principles of investing and building wealth. The Instruction Quality Commission will create a curriculum guide and resources for the course by May 31, 2026. Teachers who hold credentials in social science, business, mathematics, or home economics will be authorized to teach personal finance.
The Commission on Teacher Credentialing can also establish supplementary authorization for the course.
Mandated finance education for students
The bill had widespread support from the business community, State Superintendent of Public Instruction Tony Thurmond, the Association of California School Administrators, and the youth activism group GENup.
It passed the Legislature without opposition. Kayvon Banankhah, a high school junior from Modesto, testified in support of the bill. It’s often the students who need financial literacy the most that receive it the least,” he said.
“Parents of low-income students are far less likely to be financially literate themselves, which means they can’t pass that knowledge down to their children.”
Economics teachers argued that while they support personal finance, it should not replace economics. They predicted that enrollment in economics courses would plummet as a result. The California Council for Economic Education expressed willingness to revise the economics course framework to include more personal finance content.
Senator Dave Cortese highlighted that economic conditions leading to homelessness affect about 15,000 high school graduates annually. Personal finance education will provide tools for survival,” he said. It almost seems like a high school student needs to be ready at any time to be fending for themselves these days.
With several years to train teachers and develop the curriculum, California is taking a significant step towards equipping its students with essential financial skills for their future success.
