Financial Literacy Needed For CA Kids, Southwest RivCo Lawmaker Says

MURRIETA, CA — A California bill introduced by a Southwest Riverside County lawmaker would, if passed, make it mandatory that California’s K-12 curriculum include periodic financial literacy education, but a vote this week pushed that from happening in the near term.

State Senate Bill 342 introduced by Sen. Kelly Seyarto (R-Murrieta) failed during a vote Wednesday in the state Senate’s Education Committee, although the bill will be reconsidered in committee at a later date. Wednesday's vote was 3 yeas, 1 no, and 3 absent.

Disappointment prompted Seyarto to pen an op-ed, laying out his impassioned push for financial literacy among young people.

The state senator, who represents all Southwest Riverside County cities, wrote that students should be prepared for real-life scenarios and best practices when it comes to managing their money.

Under SB 342, "teachers would be able to include age-appropriate information based on their students’ grade levels and proficiency, and could address various topics, including personal banking, budgeting, taxes, and planning for college expenses. Since SB 342 would not add an additional class, and would be integrated into the already-scheduled 2024 curriculum revision, it would not impose financial burdens on California’s schools," according to Seyarto.

He continued, "Personally, I benefitted from being raised by a teacher who knew the value of instilling financial literacy skills in his kids. We struggled financially, but my father managed to keep our home, keep us clothed and keep us fed, even after having our household income slashed in half after our mother’s death. This taught me valuable lessons that I took into adulthood.

"Unfortunately, with today’s volatile economy and lack of financial literacy education, young adults have worse outcomes, more debt, and fewer assets than ever before, and the problem is even more prevalent in black and brown communities," he wrote.

During Wednesday's committee hearing, Sen. Josh Newman (D-Fullerton) voted no on the legislation — not because he doesn't support it. Instead, he argued the state legislature makes recommendations on education curriculum, not mandates.

Seyarto snapped back.

"I'll be damned if I'm going to let [the state's Instructional Quality Commission] dictate what we parents and we as citizenry want our kids to learn," he said during Wednesday's hearing.

If SB 342 were passed, financial literacy could be included in the state's 2024 curriculum update, according to Seyarto.

Money management for kids is on the state's radar, but it's a slow process.

In September, State Superintendent of Public Instruction Tony Thurmond hosted a virtual webinar to update K-12 educators about news that over $3.6 billion in state block grants and other resources were available to promote financial literacy in classrooms. The one-time grant is available through the 2025–26 fiscal year.

The month prior, Thurmond announced he had secured $1.4 million in private funding for teachers in California high schools to receive professional development courtesy of Next Gen Personal Finance to teach financial literacy.

Additionally, at least two state bills were recently introduced to mandate that financial literacy is taught in California classrooms. Assembly Bill 2051 requires the Superintendent of Public Instruction to allocate funding to schools that may already be implementing financial literacy education; AB 984 would require personal finance education as a requirement for high school graduation.

Seyarto argued in his op-ed that financial literacy education has never been more important for California students.

"Research has shown that students who have access to high-quality financial education have better economic outcomes as adults, resulting in less debt and a higher quality of life. This applies to students who choose a higher education path or a technical career education path. Right now, it is especially critical to prioritize financial literacy as rising inflation begins forcing California families to face tough economic choices," he wrote.

Currently, only one in four students participate in personal finance courses where offered, according to Seyarto.

"As far as the education of our children is concerned, there is no logical reason to block this bill from advancing and becoming law."