Financial Literacy Requirement in High School: California Assembly Bill 2927
On July 2, Governor Gavin Newsom signed California Assembly Bill 2927 into law. Introduced by Assemblymember Kevin McCarty, the bill mandates that high school students from California public schools complete a one-semester course in personal finance as a graduation requirement, starting with the graduating class of 2029-2030. While this legislation represents a positive step towards equipping students with essential financial skills, additional rigor, and scope are necessary to truly ensure comprehensive financial literacy.
The bill’s primary objective is to ensure students understand key financial concepts before graduating. Course content covers budgeting, understanding taxes, managing credit, and recognizing the importance of saving and investing. Because these topics are fundamental to financial stability, understanding these areas can help students make informed decisions that will benefit them throughout their lives.
In our view, there were important shortcomings in the bill:
Lack of Depth in Curriculum Requirements: The bill provides a broad outline of topics but fails to specify detailed curriculum standards or instructional strategies. This lack of specificity will likely result in varying levels of course quality across different schools and districts. A stronger bill would include detailed guidelines and standardized curriculum requirements to ensure consistency and comprehensiveness in financial education.
Teacher Training and Resources: It is vital to pair new educational objectives with the resources to accomplish them. Unfortunately, AB 2927 does not address the need for specialized training for educators who will teach the personal finance course. Effective financial education requires teachers to have a solid understanding of the material and the ability to engage students in practical, real-world applications. Without the proper training and resources for teachers, the effectiveness of this bill could significantly decrease.
Assessment and Accountability: The bill lacks provisions for assessing student understanding and evaluating the effectiveness of the program. There are no requirements for standardized testing or other forms of evaluation to measure the impact on students’ financial literacy. Including these measures would provide important feedback and ensure the program meets its educational goals.
Integration with Existing Subjects: The bill introduces personal finance as a standalone course, eschewing the potential benefits of integrating financial literacy into existing subjects such as mathematics, social studies, or economics. Integrating these concepts could reinforce learning and provide a more holistic educational experience.
Community and Parental Involvement: While the bill mentions the involvement of various stakeholders in developing alternative means for pupils to complete the prescribed course of study, it does not emphasize the importance of engaging the community and parents. Their involvement can enhance the relevance of financial education by connecting classroom lessons to real-world experiences and resources.
While AB 2927 is a commendable effort to incorporate essential financial literacy into the high school curriculum, it lacks the robustness needed to ensure its success. By addressing detailed curriculum standards, teacher training, assessment measures, integration with existing subjects, and greater community involvement, the bill could be significantly strengthened. Ensuring that all students receive a high-quality, comprehensive financial education is crucial for their future success and financial well-being. The CAYC looks forward to using this legislation as a first step towards more effective policy solutions in the future.
Image credit: KTLA