SACRAMENTO, Calif. — High schoolers in California may soon have to take a financial literacy class to graduate if lawmakers pass a new bill introduced Wednesday.
The bill, introduced by Assemblymember Kevin McCarty (D-Sacramento), would require public high schools and charter schools to offer personal finance classes.
“Financial literacy is a necessity for CA students. Most go into college without any knowledge of personal finance. This is a time where students are bombarded with credit card offers which can lead to thousands of dollars in debt. Taking a finance class in high school can help students make smart money decisions that will benefit them beyond college,” said McCarty.
During the 2020-2021 school year, EverFi surveyed thousands of high school juniors and seniors nationwide and found surprisingly low levels of financial understanding.
The survey found, in part:
- 27% reported being ready to estimate what their monthly payments might be after college
- 46% felt prepared to complete the Free Application for Federal Student Aid (FAFSA)
- 32% felt that they could read and understand loan offers and repayment information they received
- 47% of students understood how to read a paycheck and understand what determines net pay.
Under the bill, high school students would be required to take a semester-long financial literacy class. It could be one that already exists and meets the A-G requirements of University of California and the California State University, or a new class approved by the district or charter school.
If passed, it would be a requirement for graduation starting in the 2025-26 school year.
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