December 15, 2024 5 min read
As a student-athlete, you've spent years training, competing, and perfecting your craft. Your schedule has been jam-packed with workouts, practices, games, and academics, leaving little room for anything else. But as graduation approaches, so does the next challenge—financial planning. While your athletic discipline has prepared you for success in many ways, navigating life after college—particularly when it comes to your finances—requires a new kind of game plan.
I’ve coached hundreds of athletes through this transition, and what I’ve found is that most student-athletes are focused on their sport, which often means their financial education gets put on the back burner. As exciting as it is to step into the real world, the sudden responsibility of managing your money can feel overwhelming. But with a strong financial plan, just like the one you use to train, you can ensure you’re on the right path to long-term success. Let’s break down the essentials every student-athlete needs to know as they approach post-graduation life.
The first step in building a solid financial foundation is understanding your financial landscape. This involves assessing where you stand financially today. Do you have student loans? Credit card debt? Are you leaving school with any savings or investments? Knowing what’s coming in and what’s going out is key.
For many student-athletes, loans are a major factor. Whether you’re on scholarship or not, you may have accumulated student debt. As soon as your grace period ends after graduation, those payments will kick in, and they can significantly impact your financial future if you’re not prepared.
Create a list of all your debts, including student loans and any credit card balances. For each, note the interest rate, minimum payment, and total balance. This will give you a full view of what you owe and how much you'll need to pay each month.
Now that you have a clear picture of your financial situation, it’s time to create a budget. Budgeting may not be glamorous, but it is essential if you want to keep your financial life in order. Start by estimating your post-graduation income—whether that’s through a job, side hustle, or professional athletic contract.
Then, list all your expenses, starting with the basics: housing, food, transportation, and insurance. You’ll also need to account for any loan payments, savings goals, and discretionary spending. Ideally, you want to live below your means—spending less than you earn—so you can build financial security early on.
Pro tip: if you're pursuing a professional athletic career, be mindful of the ebb and flow of income. Contracts can change, and injuries happen. Set aside extra money during high-earning months to prepare for any dips in income.
Your credit score plays a huge role in your financial future, even if you haven’t thought much about it until now. Whether you’re renting an apartment, buying a car, or eventually purchasing a home, your credit score will be a determining factor in your ability to secure favorable interest rates.
Unfortunately, many student-athletes leave school without fully understanding how credit works or why it matters. Now is the time to pull your credit report and assess where you stand. If your score isn’t where you want it to be, focus on paying your bills on time, keeping your credit card balances low, and avoiding new debt unless it’s absolutely necessary.
Think of your credit score like your athletic stats—it’s a number that reflects your past performance. The better your credit, the more financial opportunities you’ll have down the road.
Taxes are one of the least exciting parts of adulting, but they’re something every student-athlete needs to consider. Whether you’re earning income from a job, a professional contract, or even Name, Image, Likeness (NIL) deals, Uncle Sam wants his cut. That means you need to understand how taxes work and how much you’ll owe.
If you’re pursuing a professional career in sports, you might have additional tax considerations, like filing in multiple states based on where you play. It’s smart to consult a tax professional to make sure you’re meeting your obligations and not leaving yourself vulnerable to a big tax bill at the end of the year.
The worst financial surprise after graduation is realizing you owe the IRS a large sum because you didn’t plan ahead.
Just like you have coaches to help you succeed on the field, you need a financial team to help you win in life. One of the most important pieces of advice I give to athletes is to surround themselves with trusted advisors—people who have your best interest in mind and can guide you through your financial journey.
For most student-athletes, this team includes a financial advisor, accountant, and possibly an attorney if you’re entering the world of professional sports. They will help you manage your money, minimize taxes, and protect your wealth as you build it.
Building a financial team isn’t just for high earners, either. Even if you’re just starting your career in a more traditional job, having professionals in your corner ensures you’re setting yourself up for long-term success.
It’s easy to think that planning for retirement or saving for a home is something you’ll do “later,” but the earlier you start, the better off you’ll be. Setting financial goals is key to staying on track with your money.
Your goals may include paying off student loans, saving for a home down payment, or investing for retirement. Whatever they are, write them down and make sure they are SMART—Specific, Measurable, Achievable, Relevant, and Time-bound. This will help you stay focused and give you a clear path to work toward.
If you’re pursuing a professional athletic career, consider how you’ll handle the transition when your playing days are over. For most athletes, their career span is relatively short. Having a financial plan in place to transition into post-sports life is critical for avoiding financial struggles later on.
Lastly, remember that your greatest asset is you. Whether it’s investing in further education, building a new skill, or starting a side hustle, the best investment you can make is in yourself. Not every student-athlete will go pro, and even if you do, your career could be shorter than you expect. Having a plan for life after sports is crucial.
Take the time to educate yourself on personal finance, attend seminars, or meet with a coach to get your finances in order. The better prepared you are, the smoother your transition will be into post-grad life.
Graduating from college as a student-athlete is an exciting time. You’ve worked hard, and now the world is at your feet. But as you step into this new phase of life, don’t neglect your finances. A solid financial plan can be the difference between thriving and surviving in the years to come. Take control of your money now, and you’ll set yourself up for success on and off the field for years to come.