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WHY FINANCIAL LITERACY IS THE MVP FOR STUDENT ATHLETES WITH NIL DEALS

Updated: Apr 3


Financial literacy for student athletes with nil deals


As you navigate the wild rollercoaster of parenting, here's a curveball you might not have seen coming: your child's potential career as a popular student athlete. Yes, you read that right! Thanks to the evolving landscape of college and high school sports, we're talking about none other than the exciting world of Name, Image, and Likeness (NIL) deals. In the era of NIL deals, financial literacy isn't just for the business moguls and Wall Street brokers—it's a slam dunk for your student athlete too!


The NIL Game is On


It all started in 2021 when the NCAA opened the floodgates, letting college athletes finally cash in on their Name, Image, and Likeness. But soon California quickly raised the stakes by extending the same opportunities to high school athletes. Now, over 30 states and even Washington, D.C., have joined the game, giving K-12 students a front-row seat to the world of NIL contracts. Your little sports prodigy could be the next big thing, signing autographs and raking in endorsements before they can even legally drive! It's like the Wild West, but with fewer tumbleweeds and more endorsement opportunities for your mini MVPs.


Just imagine your child negotiating their contract with a cereal company because they've got the charm and charisma to make eating breakfast seem like an Olympic event. It might sound like a stretch, but in the age of social media, where a viral video can launch a career, it's never too early to start counting those coins.


But before you start envisioning your child on billboards, it's crucial to recognize that this newfound financial freedom comes with its own set of challenges. Sure, there's potential for fame and fortune, but without the right financial literacy skills, your budding athlete might find themselves juggling more than just a ball.


Let's be real; not every young athlete is destined for the pros. But that doesn't mean their NIL potential should be benched. Financial literacy for student athletes opens up a world of possibilities for your child, on and off the field. Even if they don't make it to the big leagues, those negotiation skills could come in handy when they're applying for scholarships, internships, or navigating the complexities of adulting. It's not just about scoring goals; it's about setting goals and achieving them, both financially and academically.


Don't forget about Uncle Sam


With NIL deals come financial responsibilities, and understanding how to navigate the tax landscape is crucial.  Unlike our jobs that typically take out the taxes out of our check for us, that is not the case with NIL deals. Imagine your child's surprise when they realize that Uncle Sam also wants a piece of the pie.. Teaching them about deductions, tax brackets, and the importance of keeping those receipts might not be as thrilling as a game-winning shot, but it's an essential play in the game of financial literacy.


Avoiding Rookie Mistakes


NIL deals might be new, but financial pitfalls are as old as time. Without a solid understanding of money management, young athletes could find themselves fumbling the ball when it comes to budgeting, saving, and investing. From extravagant purchases to misplaced trust in the wrong financial advisor, the road to financial success is paved with potholes. Equip your child with the skills to navigate these challenges, and they'll be more likely to avoid the rookie mistakes that can plague even the most promising careers.


Building a Financial Game Plan:


Just like any successful team, your child needs a game plan for financial success. Whether it's setting short-term goals like saving for a new pair of basketball shoes or long-term goals like investing for college, financial literacy provides the playbook for success. By understanding the importance of budgeting, saving, and investing wisely, your child can build a solid financial foundation that will serve them well in any arena of life.


So, are you ready to coach your child to financial victory? The world of NIL deals is opening up exciting opportunities for young athletes, but without the right financial game plan, they might find themselves on the sidelines. From negotiating contracts to understanding taxes, financial literacy is the MVP in ensuring your child's success both on and off the field. So, lace up those parenting sneakers, grab your financial playbook, and get ready to cheer your child on as they score big in the game of life!


Enroll your student athlete in KidVestors and let us help them with their financial game plan!


 

FINANCIAL EDUCATION & INVESTING FOR KIDS AND TEENS





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  • Enroll your student in our financial literacy course and app here.  

  • If your school or group is looking for a finance curriculum to teach your students about how to manage money, start here to learn more on how to bring KidVestors to your classrooms!

  • Parents, teach your kids money and make money conversations normal in your household by visiting here.





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