A recent “report card” from the Center for Financial Literacy at Champlain College in Vermont shows there has been a significant increase in the number of states requiring students to take personal finance courses before graduation. Seven states received an “A”. Four states received an “F” including California.
According to the report by 2028, when new laws and policy changes are fully implemented, 23 states are projected to earn an “A”. California is still projected to get an “F”. Several bills are still being negotiated in Sacramento, but nothing is in place.
CNBC also did a report on the report card.
Anybody who knows me knows I’m passionate about, and have been pushing for financial education to be included in the California school curriculum for several years.
Every politician I’ve spoken to agrees there should be financial education. Back in 2016, I worked with California State Assemblymember Matt Dababneh Co-Author AB-2546, that would add financial education to the state history-social science curriculum. A watered-down version of the bill passed the state Senate and Assembly and was signed into law by Governor Jerry Brown.
AB-2546 would add age-appropriate financial education for grades 1-6. It would cover personal economic basics… savings and checking, budgeting, credit use, student loans, insurance, taxation, investing, etc… It was never implemented.
When following up with representatives from the education system, they only convey that they don’t have teachers who are trained in the subject matter, it takes a long time to move any changes through the system, and that the private sector (like me) and parents have to teach it. Let’s face it anybody can learn anything on YouTube, if they have the initiative, but most parents don’t even know economic basics like what creates a Credit Score.
The AB-2546 law was passed so long ago, the current politicians in place don’t have the “Political Incentive” to push a law that they haven’t authored, or can get credit for.
Meanwhile, California and its municipalities continue to throw money at the population and issues, but not what to do with the money, and they’re not educating our youth on how to be financially literate once they get into the real world.
Financial literacy is linked to positive outcomes, like wealth accumulation, stock market participation, effective retirement planning, and avoiding high-cost alternative financial services. Conversely, poor financial literacy and negative financial behaviors often go hand in hand.
We live in a country with increasing income inequality and systemic disparities. One crucial step toward achieving this goal is to ensure that all students have equal and guaranteed access to a standalone personal finance course in high school and that it is a graduation requirement.
Requiring all high school students to take a financial literacy course, regardless of their race, ethnicity, or economic status, is an important step toward reducing inequality.
One study shows that when schools offered a class as an elective course, it did not change financial behaviors; requirements did. Financial Literacy needs to be a requirement before graduating High School.
When I’ve taught First Time Homebuyer Education Courses required by lenders and government agencies for some high Loan to Value Loans it would cover topics such as basic budgeting, credit management, mortgage basics, and the homebuying process. Quite often the borrowers would comment “This should be taught in school”… IT SHOULD BE !!!
If you are in the Los Angeles area, and have any questions or real estate sales or financing needs, feel free to contact me
Ron Henderson GRI, SRES, SFR, RECS, CIAS, GREEN
President/Broker
Multi Real Estate Services, Inc.
Gov’t Affairs Chair – California Association of Mortgage Professionals (2017-2018)
Chairman – OutWest Marketing Meeting (Real Estate Education)
BRE #00905793 NMLS #310358
www.mres.com
ronh@mres.com
Specialist in the Art of Real Estate Sales and Finance
Real Estate market, mortgage rates, Los Angeles, San Fernando Valley, Conejo Valley, Simi Valley, Woodland Hills, West Hills, Calabasas, Chatsworth
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