California has become the 26th state to mandate personal finance education for high school students. Gov. Gavin Newsom signed AB 2927 into law last month, requiring school districts to offer a semester-long personal finance course starting in the 2027-28 school year.

Driving the news: The new law reflects a broader national trend towards financial literacy education. Personal finance course requirements have expanded from just eight states in 2020 to 26 states in 2024. The push for these requirements aims to equip students with essential financial skills, preparing them for real-world financial challenges. [CNBC] 

Why it matters: Financial literacy education is crucial for helping young people manage their money effectively, avoid debt, and make informed financial decisions. [K-12 Dive] 

  • The law mandates that every high school in California offer a stand-alone, semester-long course in personal finance, with the option for districts to require a full-year course.
  • A 2014 Federal Reserve study found that students with financial education requirements had higher credit scores and lower delinquency rates than those without such education.

By the numbers: Interest in financial education among students is high. A recent survey by Intuit found that 85% of high school students were interested in learning about financial issues, with topics such as wealth building, saving money, and avoiding debt being top priorities. [K-12 Dive] 

Go deeper: The passage of AB 2927 comes after Californians for Financial Education, led by businessman Tim Ranzetta, gathered enough signatures to place the issue on the November ballot. However, following the legislature’s approval of the bill, the group withdrew the ballot initiative. This decision avoided setting a precedent for using ballot measures to determine school curriculum, which critics argued could lead to more contentious and divisive mandates in the future. [Education Week, The 74] 

What’s next: With the law set to take effect in a few years, the focus now shifts to developing and implementing the curriculum. Lawmakers and educators will work together to ensure that the new personal finance courses provide practical, impactful education that prepares students for real-world financial challenges.