The Crisis of Financial Illiteracy in California

How the state is failing to prepare students

Image c/o GVWire

By Edith Cuevas 
Opinion Columnist

California is paving the way for other states in many aspects, including green energy, having a strong economy, and human rights. The state of California is failing in one sphere, and that is ensuring that all California students have access to economic literacy courses in high school. Financial literacy is important because it empowers students to make informed decisions, and allows them to build safety nets for themselves. 

California is one of the most diverse states in the country, and making financial literacy a requirement for high school graduation would ensure that there is equitable access to these courses, even in marginalized communities. 

I believe that this is a necessary change because it gives students the opportunity to learn about budgeting, saving, investing, understanding credit, and managing debt. This will eventually lead to a generation of students that are better equipped to make important financial decisions after their high school careers. Another benefit is the ability to navigate financial challenges by reducing the susceptibility of individuals to predatory lending or even scams. Individuals may also be able to be less likely to accumulate high levels of debt and even be less likely to declare bankruptcy. 

Here at Saint Mary’s, I have been working on an advocacy project with four other individuals from my public policy course. We are attempting to raise awareness on this core curriculum change as we believe that this issue has the potential to have a positive impact on many Californias through empowerment. During our project, we surveyed a group of about 30 students. Over 96% of students surveyed believe that financial literacy is important. About 70% of those interviewed did not have access to financial literacy courses. Only 30% of students did have access to financial literacy courses but it was only a requirement to graduate for 7% of those students. Financial literacy is important for students to understand things such as tax forms, interest rates, credit cards, loans, etc. 

Why should you care? Well, only less than 20% of students surveyed indicated that they do not struggle with filling out tax forms. The other 80% of students struggle with them and some do not understand how to file or fill out the proper forms. Nearly 70% of students surveyed did not feel prepared to manage personal finances upon graduating from high school. The consensus among those surveyed is that it is important for schools in California to offer financial literacy classes, with 85% of the responses noting that it is very important. Most importantly, there is overwhelming support for a core curriculum change across the state. 77% of those surveyed would support such a change. 

What can we do? Look out for any petitions supporting the cause, including one created by students here at Saint Mary’s, write to your local senators or assembly members, and look out for legislation supporting this matter during the upcoming November elections. Raising awareness and having conversations can make a bigger difference than you might think. 

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