The NIL Effect: Young athletes may face financial literacy gap as their wealth-building chances grow
More and more college athletes are earning money off their name, image, or likeness (NIL) since a NCAA rules change nearly two years ago — affording them the opportunity to profit from their sport no matter if they turn pro.
But many aren’t equipped to deal with the new financial infusion.
Just under half of 30,000 college students surveyed in 2019 by EVERFI, sponsored by AIG Retirement Services, said they felt unprepared to manage their money. And only 15 states mandate or will mandate that high school students take a stand-alone personal financial course to graduate, according to a Next Gen report.
That — plus those trying to prey on athletes’ ability to monetize their NIL— could undermine these young athletes' opportunity to build wealth that can help launch them into adulthood, achieve financial milestones, and lift up their families.