IBSI has been home to the Lab for Inclusive FinTech (LIFT) since 2020. Through LIFT’s investments in faculty-driven research, student innovations and collaborations, and convenings with major partners, we learn what it takes to make financial services more inclusive.

One key insight we’ve gained: Access alone isn’t enough. For financial inclusion to benefit individuals—especially those from marginalized communities—it must be paired with education.  We wrote about this before (see previous post) and it’s why we are tracking California’s efforts to improve long-term financial health through stronger personal finance education.

AB2927: A New Milestone for Financial Education in California

AB2927 (2023-2024) is an exciting step forward.  It requires that all California high school students, starting with the graduating Class of 2030–31, complete a one-semester, standalone course in personal finance. The California Instructional Quality Commission (IQC) is tasked with making this effort a reality, starting with the development of a Personal Finance Curriculum Guide.

Several IQC meetings have focused on the Personal Finance work this year, and the July 2, 2025 meeting reviewed the first draft of the Personal Finance Curriculum Guide. We provide our full public comments on that draft below, but want to highlight a few points for our IBSI community based on the discussion that took place (video recording here – starts around 1 hour 35 minutes):

  • Whether you have experience participating in government or not, California IQC’s efforts on the Personal Finance work provide an example of how a respectful, transparent government works. It’s worth highlighting there are public servants out there working for you and your family and your neighbors every day. This isn’t just important for our public policy friends and colleagues, it’s important for all of us.
  • John Muir said it best: When we try to pick out anything by itself, we find it hitched to everything else in the Universe. Watching this video, you see the Guide’s author and multiple Commissioners attempting to reckon with this point and how personal finance education is interconnected with many other important topics and outcomes (more on how IBSI is thinking about personal finance + mental health in a future post). The point is made repeatedly – improving financial education isn’t just about improved financial health, it’s about supporting improved citizenship and understanding not only how to improve personal knowledge and behaviors but also improve understanding of how macro factors – such as tariffs and interest rates – affect us. (Commissioner Hernandez makes this point around 2 hours 25 minutes).

Want to Start Learning About Personal Finance?

You don’t need to go far – Haas Professor Terry Odean offers a class (UGBA 135 001 – LEC 001) and has plenty of videos available online for free! Check them out here:

IBSI also supports new research aimed at understanding and strengthening (as needed) the effectiveness of personal finance education.

As reflected in the IQC’s discussions, there is so much potential to improve the financial health of Californians through personal finance education. We look forward to the next version of the Personal Finance Curriculum Guide and California’s efforts to improve financial health and economic mobility.

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IBSI’s Public Comment on California’s Personal Finance Curriculum Guide

The following is IBSI’s public comment for the California Instruction Quality Commission July 2, 2025 meeting to discuss the first draft of the Personal Finance Curriculum Guide (available here).

Introduction

We represent the UC Berkeley Haas School of Business Institute for Business & Social Impact (IBSI), which hosts several initiatives focused on economic mobility through inclusive financial services and personal finance education, including our youth-focused programs BOOST and BBAY and our Lab for Inclusive Fintech (LIFT). 

We applaud the state legislature for its efforts to successfully pass AB2927 (2023-2024) and the Instructional Quality Commission (IQC) to lead development of the Personal Finance Curriculum Guide (current draft available here). We know that across the country, financial literacy remains concerningly low at a time when financial insecurity remains remarkably high. AB2927 (2023-2024) recognizes the critical need to improve the financial literacy of the next generation of Californians with the goal of improved financial health, well-being, and economic mobility. Our research and program teams aim to align with and support statewide efforts related to AB2927 (2023-2024), including refining the youth education programs we lead and ensuring the evidence we generate from our research activities (such as this ongoing study) are relevant and actionable for California. 

We see the efforts under AB2927 as an opportunity for California to not only join the 29 states that mandate personal finance education for high school students but lead the nation in demonstrable improvements in our citizens’ financial literacy and health. We encourage the Commission to consider the following recommendations to ensure the guide leads to equitable, evidence-based, and impactful implementation.

Recommendations

  • Ground the design and implementation in a comprehensive understanding of the evidence base. As noted in AB2927 (2023-2024) analysis, financial literacy is critical to financial health, but we have much to learn about how to improve personal finance knowledge to build financial literacy and translate that improved knowledge into behaviors that improve financial health outcomes. The Guide provides useful references on positive impacts of financial education on behavior but doesn’t include the nuance of such findings. For example, the Guide references Kaiser & Menkhoff (2017), but does not reference all study findings, such as financial education can be less effective for lower income populations and some behaviors are more challenging to influence. It is useful for all key stakeholders – in particular teachers and students – to understand that 1) we have a lot to learn about how to do this in a way that impacts outcomes equitably and 2) one personal finance class in high school is part of a larger journey for any individual’s overall financial health, in addition to continuous education, regulation and oversight, and improved financial services.
  • Clarify the evidence and vetting process for listed tools and providers. It is helpful to provide a list of resources at this time, but can the guide please clarify:
    • What evidence – on improving youth knowledge, practice, and financial health outcomes – is associated with each of the Tools and Providers listed in Chapter 4? 
    • How might new providers signal their services/programs to LEAs over the next few years?
  • Monitor and document baseline conditions, implementation decisions, lessons learned, and best practices. What resources are available to monitor the baseline status of districts in terms of readiness and progress toward the 27-28 timeline? What resources are available to monitor implementation across 1,000+ districts and identify/support pain points, particularly for under-resourced districts? How might an independent entity like UC Berkeley/IBSI support this baseline landscape analysis and continuous monitoring to ensure successful implementation by 27-28?
    • There are several potential concerns, particularly regarding equitable outcomes: For under-resourced districts, how will we ensure the A-G approval process does not interfere with student graduation rates? How do we ensure the quality of materials and implementation remains similar across districts?
    • The Guide provides great references from early implementers (See Chapter 4). We recommend the state establish a formal mechanism for sharing best practices and lessons learned. 
  • Strengthen California’s contribution to the national evidence base. Chapter 4 concludes with a reference to data-driven activities and a continuous learning approach and Chapter 5 refers to Assessment. However, can the guide provide input on how districts, schools, and teachers might evaluate course quality? What evaluation tools and financial resources are available? How will the legislature assess and determine the overall success or necessary course corrections for AB2927 (2023-2024)? How might an independent entity like UC Berkeley/IBSI support the design and implementation of rigorous evaluation efforts?
    • While Chapter 5 discussions on Formative and Summative evaluations may capture immediate ‘knowledge’, the question remains, does the introduction of the personal finance requirement improve financial literacy and financial health? Districts may have limited to no resources to know how students who graduate retain and apply their learning – how might they learn this information to ensure the quality of design and implementation has an impact on outcomes?
  • Build stronger linkages to California-specific content and resources. The Guide states: “Financial literacy also supports civic readiness. When students understand concepts like taxes, public budgets, and economic systems, they are better equipped to engage in policy discussions and contribute meaningfully to their communities.” We agree and suggest the Guide provides LEAs with stronger linkage to California-specific issues/resources to further develop this link in their curriculum. Suggestions include:
    • CA legislative actions – There are several recent, relevant actions by the CA legislature – how might the course allow students to track and understand how such actions are intended to improve public outcomes?
      • Understanding the difference between employment and contract work and understanding the risks/costs of misclassification (See here regarding AB5 2019). Relevant for Topic 3 – Employment and Net Income
      • Understanding surveillance pricing and effect on costs and budgeting (See here AB446 2025) Relevant for Topic 2: Budgeting for independent living and Topic 9 – Consumer Protection and Fraud Prevention.
    • CA state government resources and programs – Develop stronger connections between students and CA government resources, such as:
      • CalKids and ScholarShare – State established resources intended to support Californian’s economic mobility.
    • CA’s regional economic development efforts – How might investment in new industries inform education and career choices – https://jobsfirst.ca.gov/ 
    • CA workforce development support – Improve awareness regarding local services – for general workforce development, as well as support for those with disabilities.
    • Understand complexity of benefits cliff – Improve awareness on the complexity of eligibility for social safety net programs – which many low-income households may be very familiar with – to support navigating the effects of gradual increases in wages and earnings on eligibility.
  • Clarification – The Guide defines the requirement as a one-semester course. Can the state clarify whether this equates to approximately 48–50 instructional hours over 14–16 weeks? This will ensure alignment across districts.

Conclusion

IBSI supports the vision and intent behind AB2927 and we commend the state for taking this critical step toward improving financial literacy and economic opportunity for all Californians. California has the opportunity not just to meet the standard set by other states, but to lead—by setting a high bar for quality, relevance, and long-term impact. We stand ready to contribute our research, programmatic, and evaluation expertise to help realize that vision.

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Updated December 02, 2025

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