Capital Structure Beyond the Boardroom: An Adolescent Framework for Resource Allocation, Risk Management, and Long-Term Growth

This paper investigates the unexpected relevance of corporate capital structure theory in understanding adolescent decision-making. Adopting an auto-ethnographic approach, the study draws on personal experiences, including a failed phone case venture, college savings planning, and time management challenges, to explore how financial concepts such as debt, equity, leverage, and distress costs translate into the adolescent context. The analysis reveals that these principles are not exclusive to corporate finance but are deeply embedded in the resource allocation dilemmas faced by teenagers. By reframing capital structure theory in developmental terms, this research highlights its potential to enhance financial literacy, improve risk assessment, and support more intentional choices regarding money, time, and social resources. The findings suggest that integrating these adapted frameworks into financial education could offer adolescents a more structured and empowering tool for navigating key life transitions, ultimately fostering greater agency and resilience. Future studies could consider incorporating this adapted framework into a curriculum in schools to intentionally foster adolescents' skills in financial and temporal decision-making.