California to Require Financial Literacy Education for High Schoolers

In a significant move to equip young Californians with essential life skills, Governor Gavin Newsom signed a bill last June that will require financial literacy education in high schools. Beginning in the 2027-28 school year, all high schools in the state must offer a semester-long personal finance course; by the 2030-31 school year, financial literacy will become a graduation requirement. This initiative aims to give youth the tools they need to navigate adult financial life.

Governor Newsom stressed the importance of early economic preparedness: “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.”

The new financial literacy curriculum will cover various topics, including budgeting, personal banking, taxes, credit, investing, and consumer protection, to ensure students graduate with practical knowledge they can apply throughout their lives.

For students like Charley Gless, a senior at Bakersfield High School, the new financial literacy law is a game-changer. Gless has firsthand experience with financial concepts through his father’s private teachings and through his involvement in the Virtual Enterprise program, where he and his classmates created a mock business called MYNET selling financial literacy courses. Gless believes the law is long overdue.

“I think it’s absolutely huge,” he said. “After you graduate, there is no safety net. You’re thrown into the real world, and it’s sink or swim. If you’ve taken a financial literacy course, as the new law is mandated, then you’re going to be way more prepared.”

Gless emphasized that while he has had the benefit of learning about finances outside of school, many of his peers lack this foundational knowledge. He believes the new curriculum will help students understand essential tasks like paying bills, managing taxes, and making informed financial decisions.

“Students are taking classes where they’re not necessarily learning things that are going to greatly impact their future,” he said. “Now it’s actually going to be a course where you’re going to tackle problems, like learning about your taxes, even signing a check.”

Valley Strong Credit Union is already ahead of the curve in promoting financial literacy among youth. Its website features free resources for adults, students, and teachers, including classes, videos, and apps. Chris Soden, Valley Strong’s marketing manager, says the goal is to make financial education accessible to all people, regardless of their background.

“At any age it’s important to learn about finances. I’m still learning about finances to this day,” he said. “With all the changes in the economy over the last few years, there’s always something new to learn.”

One program, Bite of Reality, provides high school students with a simulated experience of budgeting and making financial decisions in a “real-world” setting. Students are assigned jobs, salaries, debts, and even children. They then walk around to different booths to purchase things they need. Soden says the experience pushes them to make their own choices about housing, transportation, and daily expenses.

“Seeing how much things cost and seeing where their income is going helps them trigger something in their mind that says, ‘I need to think about what I’m doing here because ultimately, I’m going to run out of money,’” Soden explained.

Valley Strong Hosts its “Bite of Reality” program for high school students.

Soden says the Bite of Reality event is a great chance for students to have important firsthand experience working with money in a controlled setting. Valley Strong staff volunteer at these events, and try to entice the students to spend all their money.

“We actively upsell them at these booths because that’s how it is in the real world,” Soden shared. “We want them to blow their budget and realize they need to make smarter financial decisions.”

Valley Strong has also introduced its financial literacy mascot, Cashsquatch, to make learning about money fun and engaging for students and the broader community. This larger-than-life character, covered in cash, has appeared at local schools, community events, and the Kern County Fair.

“We wanted people to make that connection between something fun, something exciting, and financial education with Valley Strong,” Soden said.

The credit union also offers free access to the financial literacy app Zogo, which allows users to learn about a wide variety of personal finance topics, from savings to investments, and even resume-building. Users can earn points by completing modules and redeem them for gift cards at major retailers.

“Younger kids get really excited because they’re basically getting free money to learn about financial education,” Soden said.

Soden says he’s glad the State of California is including personal finance classes in high schools, something he wished he had learned as a student. He says these classes may be the first time they encounter lessons that will fundamentally shape their futures.

“Even as simple as starting a retirement plan when you do enter the career force… that sets you up for future financial success,” he said. “Shaping the mindset at a young age about finances and having a healthy relationship with money, I think that’s really the most important thing to get them started.”

Gless says he’s interested in continuing his financial education outside of school, and even though it’s not required in class yet, he’s encouraging his fellow students to do the same.

“Do whatever you can to get in that class, because learning financial literacy will give you a huge leg up,” he said. “It may not sound like fun, but it’s going to pay off huge in the long run.”