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Most US states will soon require personal finance courses in schools
Now that California Governor Gavin Newsom is expected to sign Assembly Bill 2927 By law, 26 US states will require personal finance courses to be taught in high school.
Last week, Assembly Bill 2927 passed the state Senate by a 39-0 margin before the Assembly approved it 77-0. The state Department of Education said Newson is expected to sign the bill into law. California would require school districts to offer a semester-long course in personal finance in all high schools in the state starting in 2027-28.
The course will become a graduation requirement starting in 2030-31, officials said.
“Our young people need and deserve a clear understanding of personal finance so they can make informed financial choices and build stable, successful futures for themselves and their future families,” said California Superintendent Tony Thurmond. “By adding personal finance to our high school graduation requirements, we recognize that managing household finances and building financial stability are essential life skills. Every child should have the opportunity to develop these essential skills before navigating adult financial choices, not just those who have the opportunity to learn these concepts at home or through an elective.”
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Students are expected to learn about the principles of budgeting for independent living, minimizing bank fees, employment laws in the workplace, managing credit scores, and different types of insurance and retirement plans, among other topics.
In addition to the required high school course, first and second graders will continue to be introduced to the topic of personal finance. The state implemented a core finance curriculum for elementary school students in 2016.
First-year students are expected to learn about how people exchange money for goods and services and how people make choices about how to spend money. Second-year students learn the basic economic concepts of human wants, scarcity, and choice, and the importance of specialization in today’s work.
According to TIAA Institute-GFLEC Personal Finance Index 2022, 28% of American adults have taken a financial literacy course.
According to Next Gen Personal Finance, Pennsylvania became the 25th state to require personal finance courses by the end of 2023.