A native of Chicago, Illinois, Szabo graduated from Mendel High School in Chicago. He subsequently attended the United States Naval Academy, graduating in 1965. While attending the Naval Academy, Szabo played college football from 1961 to 1964 and played as a midfielder on Navy's national championship lacrosse teams from 1963 to 1965. He played as fullback and defensive back on the same Navy football teams with Roger Staubach. After graduating from the Naval Academy, Szabo served four years in the United States Marine Corps. He was stationed at Marine Corps Base Quantico and served one year in Vietnam.