California Personal Finance Graduation Requirement

Beginning with the class of 2030-2031, all students attending California public schools, including charter schools, must complete a one-semester, stand-alone class on personal finance. AB 2927 states that students who successfully completes a separate, stand-alone one semester course in personal finance, that is not combined with any other course, can elect to be exempt from the current one semester economics requirement. Students can still choose to take economics and personal finance.

Timeline

Summary of AB2927

The Requirement

On June 29, 2024, Governor Newsom signed into law AB 2927 (McCarty), which adds a stand-alone course in personal finance to the high school graduation requirements commencing with students graduating in the 2030-2031 school year. Public schools, including charter schools, are to begin offering the course during the 2027-2028 school year. This legislation prohibits the class from being combined with any other course and states that it can be taught in grades 9-12.

AB 2927 states that beginning in the 2030-2031 school year, students who successfully complete a separate, stand-alone one semester course in personal finance, that is not combined with any other course, can elect to be exempt from the current one semester economics requirement. Students can still choose to take economics and personal finance.

Course Content

AB 2927 sets a statutory deadline of May 31, 2026, for the state board to approve a curriculum guide which outlines topics and resources for the course. California Education Code 51284.5 identifies the topics that must be taught. A few examples of the required topics include:

• Fundamentals of banking for personal use, including, but not limited to, savings and checking and managing to minimize fees
• Employment and understanding factors that affect net income, including the topics described in subdivision (a) of Section 49110.5
• Uses and effects of credit, including managing credit scores and the relation of debt and interest to credit
• Uses and costs of loans, including student loans, as well as policies that provide student loan forgiveness
• Impacts of the tax system, including its impact on personal income, the process to file taxes, and how to read tax forms and pay stubs
• Principles of investing and building wealth, including investment alternatives to build financial security, including tax-advantaged investments such as pensions and 401(k) plans, individual retirement accounts (IRAs), and stocks, bonds, mutual funds, and index funds
• Enhancing consumer protection skills by raising awareness of common scams and frauds and preventing identity theft
• Identifying means to finance college, workforce education, low-cost community college options, and other career technical educational pathways or apprenticeships. Financing options covered may include scholarships, merit aid, and student loans

Credentialing

The law authorizes individuals who hold one of the following single subject credentials to teach the course: Social Science, Business, Mathematics, or Home Economics. The law also allows the Commission on Teacher Credentialing to establish a supplementary authorization for teachers who hold single subject credentials in other subject areas.

Funding

AB 2927 states that if the Commission on State Mandates determines that the law contains costs mandated by the state, reimbursement for those costs shall be made pursuant to statutory provisions. The Arts, Music and Instructional Materials Block Grant identifies instructional materials and professional development for Financial Literacy as a priority funding area. These funds are available for encumbrance through the 2025-2026 fiscal year.