As a former college athlete and a Certified Financial Planner^®, I have seen firsthand the struggles that athletes can face when it comes to managing their finances. Like a lot of people, many athletes come from backgrounds where financial literacy was not a focus. However, unlike the average person, successful athletes may find themselves suddenly thrust into the spotlight. Then, without the tools they need, they can struggle to navigate the financial opportunities and pitfalls that come with being a high-profile competitor.

Now, with recent changes to NCAA rules that allow college athletes to profit from their name, image and likeness for the first time, it is more important than ever for athletes to be savvy in many ways. Their new potential for earning significant income through endorsements and sponsorships is a game-changer for many college athletes, but without proper education and guidance, it can also be a recipe for disaster.

As advisers, we are happy to see organizations joining forces with athletes via NIL partnerships, providing them opportunities to profit from their own talent. We are especially happy to see some of these organizations offering access to educational resources for athletes as well. Giving athletes money in exchange for use of their name, image and likeness is one thing; teaching them the extent of what they can do with all that value is of equal, if not greater, importance.

The new NIL ruling makes it crucial that college athletes also receive education pertaining to budgeting, saving, investing and taxes, and that they learn – much younger than usual – the importance of building a team of financial professionals as well as a team of legal, tax and insurance professionals. Unfortunately, many college athletes – many Americans, for that matter – were never taught financial literacy at home or school, and don’t know how to find appropriate and certified help in navigating the complexities of their new financial position.

By the way, it’s been shown that professional athletes also need more support and education around managing their finances and making smart financial decisions. According to a report from Sports Illustrated, nearly 80% of NFL players are either bankrupt or facing serious financial stress within two years of retiring. This is a staggering statistic and highlights the critical need for financial education and support for athletes at all levels.

Money itself does not make a person rich or poor – at least not for long. An abundance of money, however, does highlight the fiscal behaviors of a person, demonstrating one’s financial IQ via the decisions they make about the money in their possession. By way of example, it is said that 44% of lottery winners financially revert to where they were before (in terms of net worth) or worse within five years of winning. Again, it is our decisions and habits related to money, and money itself, that determine if we are financially rich or poor for the long term.

As a former athlete and current financial professional, I have seen the impact that financial literacy can have on a person’s life. It can mean the difference between financial stability and ruin, between building generational wealth and struggling to make ends meet. Financial education should be a priority for all athletes; they have a unique opportunity to be the voice, and example, of how to make the most of their name, image, likeness and wealth.

As successful athletes, these people will shine in the arena for some number of years, but some of them will have the opportunity to, in those same years, become financially free for a lifetime. Again, outcomes are based on choices, and a mindset that I believe we need to help athletes – and people everywhere – achieve.

The recent changes to NCAA’s NIL rules present a tremendous opportunity for college athletes to earn income and build their personal brands. This opportunity gives rise to significant responsibility, and athletes must receive financial education and professional support to meet this responsibility and ensure their own long-term financial success. Athletes can lead the way in the demand for this education and support for all young people, and I hope that more organizations begin to cater to this need, which pertains not just to athletes but to all our nation’s youth.