High School Personal Finance Course Ballot Measure Submits Nearly 900,000 Signatures

A ballot measure proposal to make personal finance a required course for graduation from High School in California handed in nearly 900,000 signatures to country registrars on Tuesday, strongly poising the measure to be on the 2024 November ballot.

Since the late 2010’s, the number of states requiring personal finance classes for high school graduation has skyrocketed. Fueled by a growing number of young Americans who are struggling financially and a huge disparity gap of the number of schools that offer personal finance classes in lower-income areas as compared to schools in higher income areas, every year this decade has seen a handful of states add the requirement to help bridge the personal finance gap. In 2023 alone, six states approved mandatory personal finance classes, increasing the total nation-wide to 23.

Last year in California, two bills, AB 984, authored by Assemblyman Kevin McCarty (D-Sacramento), and SB 342, authored by Senator Kelly Seyarto (R-Murrieta) were both submitted to their respective houses for similar mandatory personal finance education classes. However, SB 342 failed to make it past a Senate Committee in March, with AB 984 going to the inactive file in May because of dwindling support and dying in the inactive file in February. Despite the two bills not making it too far, the idea of such a requirement has remained popular. A recent Binder Research poll finding that 78% of all Californian voters being in favor of it, with strong support coming from Democrats and Republicans alike. McCarty has also continued trying, introducing AB 2927 in the legislature last month. AB 2927 is almost identical to his previous bill last year.

However, signature gathering for a mandated personal finance course for high schoolers saw more support through voters, as supporters of such a class created a petition for it last year. Personal finance class advocacy groups Next Gen Personal Finance and Californians for Financial Education announced in September of last year that they filed to start up a ballot petition  for the matter to go before voters in November 2024.

“We are launching this initiative in hopes that California will join the 23 other states that guarantee high school students a personal finance course as a condition for high school graduation,” said Next Gen Personal Finance co-founder Tim Ranzetta last year. “Personal finance skills like budgeting, building and managing credit, and understanding options to finance career or college education are absolutely essential in the 21st century and it’s long past due that California guarantees this education for all students.”

Organizers collect nearly 900,000 signatures

In the past several months, support for the California Personal Finance Initiative skyrocketed, bringing in more signature than expected. While the initiative needs 546,651 valid signatures to reach the November ballot, petition organizers announced on Tuesday that nearly 900,000 had been collected.

“The pace at which Californians signed on to this measure, which would guarantee California high school students a personal finance course prior to graduation, is a testament to the popularity of this commonsense ballot proposition,” added Ranzetta on Tuesday.

In a statement, Assemblyman McCarty said, “Financial literacy is a necessity for California students. Most go into college or the workforce without any knowledge of personal finance. Taking a finance class in high school can help students make smart money decisions that will benefit them throughout their adult life.”

The measure still has quite a way to go. Signatures need to be verified. Should enough be found valid in a few months, the measure will be on the ballot in November. And then if it is approved by the majority of voters, implementation would still take time. According to the measure, high schools would have to begin offering personal finance classes by 2026-2027, with a one semester course becoming a requirement by the 2029-2030 school year.

However, one pollster told the Globe that there is a good chance that voters would approve of such a class in November.

“Polls have shown that most Californians want this, the issue is popular with members of both parties, and it’s a mandatory class that people can get behind,” explained Scott Roth, a pollster who tracks mandatory school class requirement initiatives and legislation across the country, to the Globe on Wednesday. “And, for once, California would be riding the wave instead of becoming the first state to offer it. And, I mean, look at the states that have it as a graduation requirement now. It’s a broad mix of Blue, Red and swing states.”

“Now, just one high school class won’t be enough. You still need parents or guardians teaching their kids skills like these, as well as some trial experience getting their feet wet in budgeting and investing early on and other little things. But a class is a big step to getting personal finance information at a young age outside of watching YouTube videos of Dave Ramsay or other financial gurus or learning from their parents. If other states are any indication, California will likely have such a mandatory class sooner rather than later. And we might just see it as soon as November now.”