Future generations may be better at managing their money after high school due to a new state law requiring them to take a semester of personal finances to graduate.
At Junior Achievement of San Diego County, a similar course gives students a jump on how to manage their money even before they make any.
“A heavy dose of financial literacy, not just the numbers, but how it applies to their future life,” said the school’s CEO Sidd Vivek.
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“So for that $1,000 laptop, you end up paying $1,651. The laptop cost $1,000 but you’ve been paying interest to the bank,” says the class teacher to the students as they pay attention to how interest rates work.
Among them is eighth grader Jaqueline Gonzalez paying attention to the lesson plan.
“I think everybody should have savings, like for emergencies, you never know when something could happen,” she said as she learned the value of financially looking to the future.
“When you make a mistake, when you’re older, there is not someone there to necessarily bail you out. If you run up a credit card and max it out, who’s going to help pay that off? In most cases no one. You’re going to have to figure that out on your own,” said Vivek, another student.
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These are the types of classes that Next Gen Personal Finance is pushing as a requirement for high school students to graduate. The nonprofit’s “Mission 2030” wants all U.S. students to take at least one semester of a personal finance course to complete high school. California just became the 26th state to adopt this requirement.
It's probably the most important topic you can learn before you turn 18
Yanely Espinal, Next Gen Personal Finance
“It’s probably the most important topic you can learn before you turn 18,” said Yanely Espinal with Next Gen Personal Finance which offers training, lesson plans, and materials for free to any school interested in adding personal finance classes to its curriculum.
“I hear from a lot of students that when they don’t know the answer to things about money, or credit cards, or interest rates, or investments, they go to TikTok and YouTube,” said Espinal pointing to how unreliable these resources can be.
The new California law requires students to take at least a semester of a personal finance course to graduate beginning with the class of 2031. These courses will be made available to students as of the 2027-28 school year.
But parents don’t need to wait that long. There are ways they can help their children at home have a better shot at not making the same financial mistakes they may have made, according to Junior Achievement of San Diego County.
Start Early - Teach your child the concept of money as early as possible. How it’s earned, how it’s limited, and how it’s spent.
Talk Openly - As they get older, have open and honest conversations about money. Discuss the good and the not so good. Don’t be afraid to talk about mistakes you’ve made when it comes to finances and the struggles that came as a result of those bad decisions.
Model Good Financial Habits - Lead by example. Show them your budgeting strategies, how to look for the best deals, and how to avoid impulse buys and purchases of unnecessary products and/or services.
Courses -- You can also sign them up for financial literacy classes at places like San Diego Financial Literacy Centers, San Diego County Office of Education’s “Bizz Kid$” program, and Junior Achievement of San Diego County.
The folks over at Junior Achievement reminded parents that younger children may not be too interested in discussing finances but they shouldn’t let that discourage them. They said some of the lessons will stick and parents will find that their teens pay more attention the closer they get to turning 18.
