Student-Athletes & Their Need of Financial Literacy
Only 36% of student-athletes say they feel highly confident about their financial knowledge. But the good news is that they understand the importance of financial literacy and want to learn.
This month, I surveyed 1,500 student-athletes from my Student-Athlete Insights online community about their financial goals and their understanding of saving, investing, spending and more. Here are just a few of the takeaways.
Their Immediate Financial Goals
In what is music to the ears of financial advisors and parents alike, the #1 financial goal of student-athletes is saving money. They don’t view savings as a “rainy day fund,” but rather the means to a specific experience or purchase they’d like to make. #2 on the list is growing their income - whether by way of a summer job, a side-hustle, or an NIL opportunity. And #3 is learning about investing (only 36% of student-athletes said they understand how the stock market works.)
They Know What They Don't Know
The #1 area in which student-athletes admit to needing education is taxes. About 2/3rds of student-athletes cannot explain the difference - from a tax perspective - between an employee and an independent contractor. Of critical concern in our new NIL era is that about 70% of student-athletes don’t know about quarterly tax payments. 64% of student-athletes who want to invest say what’s holding them back is not knowing where to start.
While many of my financial advisor friends may get frustrated about student-athletes’ fascination with cryptocurrencies, it might be best to meet them where their interest is. Half of student-athletes say that they enjoy learning about emerging financial technologies, cryptocurrencies, and NFTs. Nearly 10% indicate that they own an NFT!
Where Student-Athletes Get Financial Info
Student-Athletes are part of a “self-learning” culture - which has both benefits and drawbacks. The current sources of financial information that student-athletes most use are: YouTube, friends & family, and TikTok. And let’s remember that there are no credentials or training required for these sources when they talk about budgeting, saving, or anything else.