The importance of learning financial literacy at a young age cannot be overstated.

Celia Jiménez here, thinking about the importance of developing financial literacy at a young age to have the skills to thrive in an ever-changing financial market. 

In June, the State of California announced financial literacy would be a high school graduation requirement starting with the class of 2031.

I had my “wow” moment when I learned about it, especially since parents often say they want their kids to learn skills they will use in their everyday lives.

“We need to help Californians prepare for their financial futures as early as possible,” Gov. Gavin Newsom said in a press release. “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.”

Currently, 25 states, including Alabama, Utah and Virginia, have passed legislation requiring a finance course to graduate high school. Sixteen will implement the requirement by this year or by 2028.

I asked PK Diffenbaugh, Monterey Peninsula Unified School District’s superintendent, his thoughts about it. 

“Kids are going to be excited to really learn the practical skills that they'll need in their adulthood,” Diffenbaugh says, noting financial literacy is a topic students have shown interest in.

Diffenbaugh says this class would differ from the economics classes currently offered in high schools. In those classes, students learn basic personal finances, but not in-depth. Monterey High School offers an elective business class that covers personal finance in its Monterey Peninsula College dual enrollment program.

Diffenbaugh remembers when he was in college, and he and other students would be encouraged to sign up for a credit card. 

“I didn't fully understand how credit works, and how building your credit score is important at a young age, and how not paying off your credit card monthly can lead to long-standing repercussions in terms of your credit score when you try to go buy a house when you're older,” Diffenbaugh says. “I wish that I had started putting money away for retirement when I first started working right out of college, but I didn't.”

If you ask me, financial literacy isn’t the only required classes students should have. I think cooking, car maintenance and household chores should also‌ be required. I know, it sounds very old-fashioned, but these are skills everyone will need when they leave their parents' nests.

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