It’s never too early to prepare Arizona teens for financial independence

Jay Curtis

Submitted photo

Mad City Money

For more information on First Credit Union’s free financial course for teens ages 13-19 interested in learning how to budget, save and make smart decisions about their money, visit https://firstcu.net/mad-city-money.

Earning that first very first paycheck, making that first car payment and waiting to be approved for that first apartment lease are all financial rights of passage. Yet, most young adults are not prepared to navigate these financial milestones. Despite the significant role money plays in our daily lives, personal finance education remains a glaring gap in high school curricula nationwide.

Only five states — California, Connecticut, Minnesota, Indiana and West Virginia — require personal finance courses for graduation. That means a majority of American teens, including those in Arizona, may enter adulthood without essential budgeting and money management skills.

The National Endowment for Financial Education found that one in five U.S. teens lacks basic financial knowledge, and just 22.7% of high school students nationwide have access to personal finance courses. Without structured education in this area, young adults are left to figure out financial responsibility through trial and (often costly) error.

Bridging the gap through hands-on learning

While schools may not universally offer financial education, community-based initiatives can help fill the void. Programs like Mad City Money, hosted by First Credit Union, provide teens with hands-on financial literacy experiences.

This interactive simulation gives participants ages 13 to 19 an assigned career, salary, family and financial obligations. They must make real-world financial choices about housing, transportation, childcare, groceries and other daily expenses — all while sticking to a budget.

The exercise exposes them to the realities of adulthood, often leaving them surprised by how quickly their “paychecks” disappear when faced with real-life costs. By engaging in this type of experiential learning, teens gain a clearer understanding of the importance of budgeting, saving and making thoughtful financial decisions.

Practical money lessons for teens

Beyond participating in financial literacy events, teens can develop smart money habits by incorporating these essential practices into their daily lives:

1. Learn to budget — your money, your rules

• Track all income and expenses. Free budgeting apps or even a simple spreadsheet can help visualize spending habits.
• Follow the “50-30-20 Rule:” 50% for needs (rent, food, gas), 30% for wants (entertainment, dining out) and 20% for savings or debt repayment.
• Differentiate between needs and wants — just because something is on sale doesn’t mean it should be purchased on a whim!

2. Make saving a habit, not an afterthought

• Open a savings account and deposit money regularly — even small amounts add up over time.
• Understand how compound interest works and why saving early is a game-changer for financial security.
• Set savings goals for a car, college or an emergency fund, and commit to reaching them.

3. Get smart about credit before you swipe

• Learn how credit cards work, including interest rates, minimum payments and the dangers of carrying a balance.
• Keep credit utilization low (below 30% of the credit limit) to build a healthy credit score.
• Understand the long-term impact of student loans and other debts before signing on the dotted line.

4. Plan for the future — yes, even now

• Look into investment basics — stocks, bonds and 401(k)s aren’t just for adults.
• Learn how to read a paycheck, including deductions for taxes, insurance and retirement contributions.

5. Use free financial resources

• The Consumer Financial Protection Bureau and the National Endowment for Financial Education offer free tools and guides for financial literacy.
• Many banks and credit unions provide free financial education workshops — take advantage of them!
• Monitor your credit score regularly to stay informed about your financial health with free apps like Credit Karma and Experian.

Earning, spending and growing financially

• Find and keep a job teaches responsibility, work ethic and financial discipline.
• Understand how taxes affect your paycheck — many young workers are surprised by how much gets deducted!
• Practice smart spending habits by comparison shopping and resisting impulse buys.

Financial literacy is a lifelong skill

By prioritizing financial literacy, teens can avoid common money pitfalls and set themselves up for long-term success.

Whether through real-world simulations, conversations with trusted mentors or self-education, taking control of personal finances early leads to smarter decisions later and a more empowered future. Remember, financial freedom doesn’t happen by chance — it happens by choice.

Editor’s note: Jay Curtis is president and CEO of First Credit Union, which has eight branches in the Valley, including Chandler, Glendale, Goodyear, Phoenix and Tempe. Please send your comments to AzOpinions@iniusa.org. We are committed to publishing a wide variety of reader opinions, as long as they meet our Civility Guidelines.