California high school students will soon have to complete a financial literacy requirement to graduate, state officials announced Thursday.

The announcement came after an agreement was reached between NGPF Mission 2030, an affiliate of Next Gen Personal Finance, a national financial literacy non-profit, and state officials.

“We need to help Californians prepare for their financial futures as early as possible. Saving for the future, making investments, and spending wisely are lifelong skills that young adults need to learn before they start their careers, not after,” Newsom said in a statement.

The new requirement is reflected in AB 2927, a legislation sponsored by NGPF Mission 2030, which the governor will soon sign into law.

A semester-long personal finance education course will be available to all high school students in California by the 2027-28 school year. The personal finance completion requirement for graduation will start with the 2030-31 graduating class, a news release said.

Once the bill is signed, proponents of the California Personal Finance Education Act initiative have agreed to remove its measure from the November 2024 ballot.