California will begin to require high school students to complete a financial literacy course in order to graduate, after a bill mandating this requirement is expected to be signed into law by Governor Gavin Newsom.
The bill, which has bipartisan support in the state legislature, will require students graduating in the class of 2030-2031 and beyond to take a semester-long course in personal finance.
“We need to help Californians prepare for their financial futures as early as possible. 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,” Newsom explained in a press release.
The legislation comes at a time where many members of Gen Z have expressed doubts about their ability to properly handle their personal finances both now and in the future. A survey by WalletHub from earlier this year indicated that Gen Z is the least financially confident generation, with 28% of individuals lacking confidence in budgeting and managing their finances.
The survey found that almost 30% of Gen Zers do not have a budget or strategy for managing their monthly expenses. It also highlighted Gen Z’s skepticism about their ability to purchase a home in the future.
State Representative Kevin McCarty, who authored the bill, expressed pride in the new policy and its anticipated benefits for high school students as they transition into adulthood.
“I’m proud to be the lead author on this important policy and help students make smart money decisions that will benefit them throughout their adult lives. I want to thank Next Gen Personal Finance, Governor Newsom, Speaker Rivas, and Senate President pro Tempore McGuire, for their leadership in making this happen,” McCarty said.
