Financial Literacy for California Children a Priority for State Leaders

The California State Capitol building in Sacramento, Calif., on April 18, 2022. (John Fredricks/The Epoch Times)

Financial literacy for California students has become a top priority for lawmakers who have moved swiftly this year to support bills mandating personal finance skills for statewide education.

Gov. Gavin Newsom announced this week that he had come to an agreement with lawmakers and nonprofit leaders on the need for the education.

“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,” Mr. Newsom said June 27.

The governor’s announcement referred to the state Senate’s passage of Assembly Bill 2927 this week, which adds financial coursework to the state’s graduation requirements for public and charter school students in grades 9–12.

The bill was introduced by Democrat Assemblyman Kevin McCarty in February, and the governor’s office confirmed he will sign the bill into law. Once signed, it will go into effect for the 2027–28 school year.

“Taking a finance class in high school can help students make smart money decisions that will benefit them throughout their adult life,” Mr. McCarty said in February.

This is not the first bill in the Legislature targeting financial literacy.

Republican Assemblyman Juan Alanis also introduced AB 1871 earlier this year, which would require schools to teach such recommended coursework for grades 7–12.

Both bills propose integrating financial literacy coursework into existing social studies framework of the state’s Education Code. Mr. Alanis’s bill is currently being held in the Senate due to conflicts with other active bills dealing with the same education code.

Eighty-five percent of U.S. high school students would like to learn about finances and study financial topics in the classroom, according to a study released earlier this year by Intuit.

According to the study, 95 percent of teenage respondents currently receiving financial literacy educational opportunities revealed they “find it helpful.”

Mr. Alanis’s legislation directly conflicts with four other bills and will need amendments adopted to avoid what’s known as “chaptering out,” when two or more bills amend the same section of law, a spokesperson for his office told The Epoch Times.

The bill is unlikely to reach the governor’s desk until after August 5 when the Legislature reconvenes after the summer recess, which begins July 3.

“I’m hopeful that the governor will see the wisdom of this proposal and sign the bill into law,” Mr. Alanis said.

Mr. McCarty did not respond to a request for comment.