California to make financial literacy classes a requirement to graduate high school

SACRAMENTO, Calif. -- California is set to add financial literacy classes as a requirement to graduate high school.

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Governor Gavin Newsom announced on Thursday an agreement with Nex Gen Personal Finance, a national financial literacy non-profit.

The agreement requires all California high school students to take a semester-long personal finance education course starting by the 2027-28 school year.

The course will also be a graduation requirement starting with the Class of 2030-31.

"We need to help Californians prepare for their financial futures as early as possible," Newsom said in a statement. "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."

Nex Gen Personal Finance, which sponsored California Assembly Bill 2927, aims to have all U.S. high schoolers take at least one semester of a personal finance course before graduation.

Governor Newsom says he will sign the bill into law. This comes after California lawmakers approved a budget on Wednesday that slashes spending and temporarily raises taxes on some businesses to close an estimated $46.8 billion budget deficit.

Once the bill is signed, proponents of the California Personal Finance Education Act initiative have agreed to remove its measure from the November 2024 ballot.