Forget balancing a checkbook. Today’s teens need to know how to avoid identity theft, decode a credit score and figure out if that “buy now, pay later” plan is actually worth it.
With a new state law requiring all Colorado high school students to complete a course in financial literacy beginning with students in the 9th grade on or after Sept. 1, 2026, educators now face a practical challenge: how do you design a course that prepares 21st-century teens to make smart financial choices in a world of skyrocketing rents, digital wallets, student loans and TikTok stock tips?
The law, House Bill 25-1192, mandates a semester-long course in personal financial literacy for every public school student, beginning with the class of 2028.
But it leaves the details up to local school districts, many of which are still figuring out what today’s students need most: the basics of budgeting and saving, yes, but also how to navigate the gig economy, manage online spending and protect themselves from increasingly sophisticated financial scams.
While the law sets a content requirement, it allows schools to integrate the financial literacy standards into an existing course rather than create a new standalone class.
But, students must understand and practice filling out the federal or state financial aid form (FAFSA or CAFSA), unless they and their parents opt out.
Colorado has one of the lowest FAFSA completion rates in the country, according to the Colorado Department of Higher Education. This means Colorado students are missing out on significant amounts of federally available grant money.
The law doesn’t include a standardized curriculum or end-of-course exam. Instead, it points to existing high school standards, last updated in 2020, as the foundation. Those standards cover:
Each district will determine how to implement the course, whether as a graduation requirement embedded in current offerings or as a standalone class
Anneliese Elrod, chief operating officer of Westerra Credit Union, says the curriculum must go far beyond “checkbook math” to prepare students for real-life financial challenges. That includes understanding how credit cards work, budgeting realistically and navigating everything from financial aid to digital payment scams.
“Budgeting by available balance is one of the most common mistakes we see young people make,” Elrod said. “They don’t understand the difference between their current balance and what’s pending. It can lead to overdrafts or worse.”
She said teens should learn how to read a pay stub, build a credit score and avoid scams on payment apps like Venmo and CashApp. Lessons should also guide them through how to evaluate financial decisions, such as whether to rent an expensive apartment or sign up for a “buy now, pay later” plan.
“Even understanding basic investing, like what a Roth IRA is or how to open an interest-generating savings account can give them a huge head start,” Elrod said.
Elrod said she was especially glad to see FAFSA covered in the new requirement.
“That knowledge is something you just don’t intuitively understand, and it’s a very convoluted maze,” she said. “If we are doing it for that reason — bravo.”
Additionally, she emphasized that understanding FAFSA and student loans is crucial, as many students miss out on financial aid by skipping the application process, which can leave them paying off debt well into the future.
While today’s teens may be more aware of traditional scams than older generations, Elrod said, they’re often more vulnerable to savvy marketing and high-pressure sales tactics.
“Marketers are very good at making it feel good and immediate,” she said. “And kids are all about that.”
Teenagers may not be thrilled about taking a required money class, but educators can keep them engaged with real-world scenarios, Elrod said. That starts with relevance.
“They’re not going to understand purchasing a house. They are going to understand going out to dinner with friends or buying new clothes,” she said. “Making the examples relevant helps students connect the dots.”
Elrod’s team at Westerra Credit Union offers a classroom simulation that gives students a job, a salary and bills to manage and then throws high-pressure sales pitches their way.
“It’s one thing to talk about budgeting,” she said. “It’s another to experience the consequences of blowing your budget on an apartment with killer mountain views and realizing you can’t afford to eat.”
When students walk through those decisions, Elrod said, the lessons tend to stick. “You can tell them they need to budget, but letting them feel what it’s like to make the wrong choice is much more effective.”
Financial education doesn’t have to stop at school. Elrod encourages parents to involve teens in family budgeting, talk openly about money and consider opening joint accounts or debit cards when they’re ready.
“Every student is different. Some are ready at 10, others not until 16,” she said. “The key is creating habits early and making the conversation feel relevant.”
Elrod recommends apps that help families gamify chores, savings and spending. Some allow parents to set savings rules, such as automatically diverting one-third of every allowance into savings and help kids track their spending in real-time.
“The goal isn’t to lecture,” she said. “It’s to build confidence. When teens feel in control of their money, they make better choices.”
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