By Sam Piha
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| Source: Vermont Afterschool, Inc. |
In 2023 we made the case that, “financial well-being is a growing problem for today's youth. For instance, today’s youth can amass debt quickly, often in the form of school loans or credit card debt. We know from research that young people who are financially literate make much better decisions regarding their future finances. However, most young people, especially youth of color, lack access to financial literacy information. This is referred to as America’s financial literacy gap. Afterschool programs are especially well positioned to address the need for financial literacy. ”[i]
We posted a LIAS blog, released a briefing paper and hosted a webinar/training to raise awareness and understanding of the importance of financial literacy for youth. Thus, we were excited to learn from California’s EdSource that, “soon, all California high school students will learn about college grants and loans, how tax rates work, the benefits of insurance and how interest high rates can blow your budget when you miss a payment on a credit card.”
“Research shows that students who have access to high-quality financial education have better financial outcomes as adults that result in less debt and a higher quality of life.” - Tony Thurmond, California Superintendent of Schools
This week, legislators rushed to pass legislation that would make California the 26th state to require a course in personal finance as a requirement for high school graduation as of 2030-31. A semester of personal finance must be offered in all high schools starting in 2026-27. Under the bill, the Instruction Quality Commission, which reports to the State Board of Education, will create a curriculum guide and resources for a personal finance course by May 31, 2026.
The course will include these topics:
- Fundamentals of personal banking, including savings and checking accounts
- Budgeting for independent living
- Financing college and other career options
- Understanding taxes and factors that affect net income
- Credit, including credit scores and the relation of debt to credit
- Consumer protection skills like identifying scams and preventing identity theft
- Charitable giving
- Principles of investing and building wealth, including pensions and IRAs, stocks, bonds, and mutual funds” [ii]
“It’s often the students who need financial literacy the most that receive it the least. Parents of low-income students are far less likely to be financially literate themselves, which means they can’t pass that knowledge down to their children. I truly believe this bill is one of the most impactful and feasible ways we can combat wealth inequality in our state.” - Kayvon Banankhah, a high school junior from Modesto, CA
When asked in a survey, youth reported learning how to manage money was “meaningful” and something they wanted.
END NOTES
[ii] John Fensterwald, Add personal finance to what every California high school graduate must learn
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