On June 29, Governor Gavin Newsom signed into law Assembly Bill 2927, which guarantees a standalone personal finance course for all California public high school students. Longtime advocates, including the NGPF Mission 2030 Fund, greatly applaud the efforts of the many legislators, organizations, teachers and students who made this a reality.

“As a result of this legislation, 64 percent of high school students in the U.S. will have guaranteed access to a standalone Personal Finance course,” said Tim Ranzetta, Co-Founder of Next Gen Personal Finance (NGPF), a leading nonprofit dedicated to providing high-quality personal finance curriculum and professional development at no-cost to educators and school districts. “We commend California policymakers for trusting in the excellent educators across the state to deliver life-changing education to all high school students.”

California is the 26th state to adopt a financial education guarantee for high schoolers. View the status of all states on NGPF's Live U.S. Dashboard.

Bill Receives Unanimous Vote in Favor

“We need to help Californians prepare for their financial futures as early as possible,” said Gov. Newsom in a press release. “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.”

The policy is popular. Nearly 900,000 Californians signed a petition to place this initiative on the ballot, demonstrating to legislators the broad public support for providing young people with these critical life skills. Throughout the AB 2927 legislative process, all votes were unanimous. 

The measure was authored by Assemblymember Kevin McCarty (AD-06). 

"Many young Californians are entering college and the workforce without a baseline understanding of personal finance. This is at a time when they’re being hounded by credit card ads and student loan applications,” said Assemblyman McCarty. “Personal finance equips youth to make informed decisions about saving, investing, and managing debt, leading to better financial stability in adulthood. Proud to have AB2729 signed by the Governor, ensuring all California students will be able to benefit from a personal finance course."

A recently published report conducted by Tyton Partners, Investing in Tomorrow: Lifetime Value of Financial Education in High School, estimated that the lifetime value of a one semester personal finance course for a California student is $127,000.

“I commend Governor Newsom, Legislative Leaders including Assemblymember McCarty, and Tim Ranzetta, co-founder of Next Gen Personal Finance (NGPF), for their rock-solid dedication to personal finance education,” said State Treasurer, Fiona Ma. “This game-changing legislation is a huge leap forward for our state, equipping every high school student with the tools for financial independence and stability."

The legislation will require a semester-long personal finance education course available for all California high school students by the 2027-28 school year and make personal finance a graduation requirement starting with the 2030-31 graduating class. 

“By adding personal finance to our high school graduation requirements, we acknowledge that managing household finances and building financial stability are essential life skills,” said State Superintendent Tony Thurmond. “Every child should have the opportunity to build these essential skills before navigating adult financial choices, not just those who happen to have the opportunity to learn these concepts at home or through an elective.”

Teachers See Transformative Power of Finance Education Firsthand

"Requiring a personal finance class for all students to take is vital to the health of our future economy as well as the success of the future generations,” said Tara Razi, a personal finance teacher at San Marcos High School in North San Diego County. “High school students need to have access to financial literacy to help them learn important skills they can use for the rest of their lives."

Research has clearly demonstrated that a personal finance course improves long-term financial decision-making and positively impacts student debt decisions and credit scores, helps graduates avoid predatory lenders, helps increase savings rates among teachers, and even generates positive spillover effects on parents. 

“AB 2927 is a legacy-building initiative. By teaching financial literacy, we are not just preparing students for their futures; we are laying the groundwork for their children's and grandchildren's financial stability,” said Christopher Jackson, personal finance teacher at Da Vinci Communications High School in El Segundo. “While teaching seniors financial literacy, I've seen the transformative power where 17 and 18-year-olds make informed decisions that lay the foundation for their financial wellness.”

In 2023, only 27 percent of California high school students attended schools offering personal finance classes. Champlain College’s 2023 National Report Card on High School Financial Literacy gave California an F in financial literacy. With full implementation of this policy, that grade will move to an A. 

“Money impacts our lives each and every day, yet financial literacy is not taught in most California schools – until now,” said Crystal Rigley, a personal finance coach at Berkeley High School. “Many adults say they wish they had a personal finance class in high school and now we are gifting our young people the knowledge and skills they need to enter adulting financially empowered.”

NGPF supports more than 100,000 educators nationwide, including over 6,000 teachers in California. The NGPF Mission 2030 Fund, a nonprofit that advocates for this policy in all states, was a supporter of the bill and provided technical support to policymakers.

About the Author

Hannah Rael

As NGPF's Marketing Communications Manager, Hannah (she/her) helps spread the word about NGPF's mission to improve the financial lives of the next generation of Americans.