California's personal finance education mandate is a pledge to the upcoming generations.

• High school students in California are mandated to take a standalone personal finance class as the 26th state to implement this requirement.
• According to the Next Gen Personal Finance 2024 State of Financial Education, only 1% of high school students are required to take a personal finance course as a condition for graduation in the current state.

In a 2022 survey from the National Endowment for Financial Education, over 85% of Americans agreed that financial education should be mandatory for high school graduates.

The California Legislature has unanimously passed a bill guaranteeing that future high school students will receive a stand-alone personal finance course, which Gov. Gavin Newsom signed into law on Saturday.

As a supporter of this legislation and co-founder of Next Gen Personal Finance, I am thrilled that with Newsom's signature, all U.S. high schoolers will be mandated to take a one-semester personal finance course as a graduation requirement.

In 2021, California became the 26th state to mandate a standalone personal finance class. Five years ago, only five states required such a class, which covered just 17% of high school students, according to the Next Gen Personal Finance 2019 State of Financial Education report.

The adoption of this policy nationwide highlights the importance of equipping students with practical skills to prepare them for life after graduation, regardless of whether they pursue higher education or a career.

Numerous adults have expressed to me the same sentiment about personal finance: "If only I had taken a class on this subject." They have recounted their struggles with managing credit and how it negatively affected their credit scores, or they have lamented their lack of knowledge about investing, which hindered them from starting early to take advantage of compounding.

There's also the economic benefit for the student.

According to research from Next Gen Personal Finance and consulting firm Tyton Partners, students who take a one-semester course in personal finance in California experience a $127,000 lifetime positive benefit.

As a volunteer teacher at Eastside College Preparatory School in East Palo Alto, California, I witnessed the benefits of my work extend beyond the classroom to siblings and parents of my students. This experience motivated me to co-found Next Gen Personal Finance.

The most populous and diverse state in the country, known for innovation and opportunity, should follow the lead of other states and make a personal finance class a high school graduation requirement. A 2023 report from Champlain College's Center for Financial Literacy gave the state a failing grade of "F" in financial literacy. Not something to be proud of.

In California, only 1% of high school students are required to take a personal finance course as a graduation requirement, compared to 53% nationally. The implementation of this requirement marks a positive change in the state's financial education system.

All students in the state, regardless of their school or economic background, will now have an equal chance to acquire essential 21st century skills such as budgeting, credit management, and financial decision-making for their career or college.

Recognizing the empowerment of personal finance education in high school, those states that have not yet committed to it should take note of how these skills protect students from questionable advice on social media.

To ensure a better future for ourselves and the next generation, it is crucial to teach young adults lifelong skills such as saving, investing, and spending wisely, as early as possible, as Governor Newsom emphasized in his announcement of committing to sign the measure into law.

The future success and stability of our generations is at stake, but the kids in California will be okay because now managing their finances will be a part of their life's toolbox.

As a co-founder of Next Gen Personal Finance and a member of the CNBC Global Financial Wellness Advisory Board, Tim Ranzetta is a prominent figure in the financial industry.