Is 8th or 9th Grade Too Early to Learn Personal Finance and Economics Basics?

Picture this: a 15-year-old excitedly swipes his shiny new debit card for the latest pair of Jordans he’s saved up for—only to be blindsided by a bank alert: the account is overdrawn. Another teen spends hours scrolling through her shopping apps, juggling the decision to buy three moderately priced tech gadgets or save for the next big release. Now, cut to a family dinner where the parents are at their wits’ end trying to explain budgeting to their child who insists they “never have enough money.”

These scenarios are all too familiar for today’s teens and their families. The financial stakes are surprisingly high: on average, teens spend $2,300 per year, with top expenses including clothing, food, and technology (Statista, 2023). Approximately 15% of teens own a credit card (CNBC). And the average U.S. college graduate leaves school saddled with $33,000 in student loan debt (Federal Reserve, 2023). Given this reality, the question arises: is 8th or 9th grade too early to learn personal finance and economics basics? Our answer is a resounding “no.” Here’s why.

Teens Are Wired to Take More Responsibility

Research shows that adolescence is a key developmental window when teens are neurologically primed for increased responsibility. In The Self-Driven Child, authors William Stixrud and Ned Johnson argue that giving teens real autonomy leads to stronger motivation and decision-making skills. “Teens need the chance to own their actions and choices in a safe, supported way,” they write(Stixrud and Johnson). Personal finance offers this opportunity.

Parents, too, are eager for their teens to step up. Teaching them the basics of budgeting, saving, and understanding credit can be a great way to bridge this gap. However, teens need structured opportunities and a chance to practice financial skills in real life. Consider that 53% of teens have a bank account, yet only a fraction fully grasp how to manage checking, savings, or write checks effectively (JPMorgan Chase). Learning early can empower teens and ease family tensions over money.

Core Economics Concepts Help Teens Make Better Spending Decisions

Teens are notoriously savvy shoppers, but that doesn’t mean they’re smart with money. Introducing key economic principles, like maximizing utility, can fundamentally change the way they make decisions. For example, imagine an 11th-grade student debating whether to spend $400 on a prom dress or to rent a dress for a fraction of the cost and allocate the savings toward a summer trip. Or a teen weighing the pros and cons of buying the latest smartphone versus waiting for seasonal sales.

These are real-life scenarios where economic thinking comes into play. When teens learn to consider opportunity costs, delayed gratification, and how to “stretch a dollar,” they’re building skills that go far beyond purchases. Such lessons lay the groundwork for strong money management during college and well into adulthood.

Learning Financial Fundamentals Shapes Better Life Decisions

The third—and perhaps most important—reason for early personal finance education is its potential to shape lifelong decisions. A solid grasp of saving, investing, and understanding interest rates can empower teens to view college as a calculated investment. They can weigh tuition costs, potential debt, and career prospects against their passions, values, and the economic demand for their skillset.

For example, if a teen dreams of becoming an artist but recognizes the economic challenges facing liberal arts graduates, they might use financial literacy skills to create a sustainable plan—like combining art with marketing courses or pursuing specific STEAM programs. But on the flip side, a teen pushing himself into engineering just because it looks like the fastest path to a certain salary and Return on Investment (ROI), while ignoring more authentic interests in medicine or architecture,  can backfire in a costly way. For example, it could lead to burnout just a few years after college, layoffs or firings, wandering, and eventually retraining.

Ultimately, helping teens view themselves as “investments” and encouraging them to analyze supply and demand for skillsets can be invaluable for their career decisions. But this approach works wonders when combined with guidance in uncovering our purpose and talents.

Conclusion

Teaching personal finance and economics basics to 8th and 9th graders isn’t just practical—it’s transformative. It builds autonomy, smarter spending habits, and a solid foundation for lifelong decision-making. Our coaching program uniquely integrates these lessons with personalized guidance, helping teens align their financial understanding with their passions, purpose, and future goals. With our approach, teens don’t just learn finance—they learn to design a life they’ll be proud of.

In a promising move, the state of California recently announced plans to make personal finance education a requirement for high school graduation (California Department of Education). This acknowledges the vital importance of financial literacy in today’s world. But parents should think carefully before relying solely on this future mandate. Implementation is not immediate and may take years, with potential delays along the way. Additionally, quality is a pressing concern. A shortage of qualified teachers who deeply understand finance and economics could hinder the effectiveness of the curriculum, resulting in uneven experiences across schools.

Contrast this with the personalized approach offered by Master Plan Academy. The founder of our program, a graduate in economics from UC Berkeley and with a master’s in public policy from Harvard, has worked as an economic and financial consultant for a nationally recognized litigation consulting firm. He also has real experience teaching 9th-grade personal finance, having successfully scaled a college/career/tech/personal finance curriculum district-wide in San Francisco. His collaboration on this project with Pearson Education earned him a national teaching award. With our expertise, we offer a depth of understanding and a proven track record of equipping teens to thrive—far beyond what a typical classroom experience might provide.

Sources:

• California Department of Education. “California to Require Personal Finance Class for High School Graduation.” California Department of Education, 2023, www.cde.ca.gov.
• Statista. “Teenage Average Annual US Expenditure by Category 2023.” Statista, 2023. www.statista.com
• “Credit Cards for Teens: Pros and Cons.” CNBC, 27 May 2021, www.cnbc.com.
• Federal Reserve. “Student Loan Debt Statistics 2023.” Federal Reserve, 2023, www.federalreserve.gov.
• Stixrud, William, and Ned Johnson. The Self-Driven Child: The Science and Sense of Giving Your Kids More Control Over Their Lives. Vintage, 2018.
• “Teens and Money: Teen Bank Account Access and Literacy.” JPMorgan Chase, www.jpmorganchase.com.