Personal Finance Strategies for Student-Athletes

Student-athletes face unique financial opportunities and challenges, such as managing scholarship funds, setting aside money from part-time employment and getting ready for a career in athletics. Learning to manage your personal finances and plan for the future is as crucial as physical training — it can help you excel in your sports endeavors and secure a stable and prosperous future.

Student-athletes face distinct financial circumstances compared to their peers, ranging from scholarship dependencies and time constraints to the uncertainties of professional sports careers. Early and tailored financial planning can help you prepare for the opportunities and challenges that lie ahead in your athletic and post-athletic careers:

Scholarships and grants can significantly ease the financial burden of school for student-athletes. Start the application process early — ideally 18 to 24 months before university entry — to increase your chances of securing scholarships.

Student-athletes can explore a range of scholarships, including grants from the NCAA, private entities, high school athletic associations and community organizations.

NCAA Division I

In NCAA Division I, athletes may receive full-ride scholarships that cover all college expenses, including tuition, room, board and sometimes additional costs. These full-ride scholarships are more common in high-profile sports with larger budgets, such as football and basketball. In contrast, sports classified as "equivalency" typically offer partial scholarships, allowing coaches to distribute funds among several athletes. The amount and availability of these scholarships can vary significantly, often depending on the school's budget and the athlete's talent and potential.

NCAA Division II

NCAA Division II schools typically offer partial scholarships that cover a portion of college costs, distributing these across a larger pool of athletes than Division I. Some institutions may provide a mix of financial support that acknowledges athletic prowess and academic achievement. Similar to the "equivalency" sports in NCAA Division I, these scholarships don't typically cover all college costs, and the amount can vary significantly based on the program's budget, the athlete's ability and the school's interest in the athlete.

NCAA Division III

NCAA Division III schools do not offer athletic scholarships but provide various other financial aid options. These aids include academic scholarships, grants and general financial aid, which are accessible to student-athletes based on academic merits, financial need and other criteria.

NAIA

The National Association of Intercollegiate Athletics (NAIA) offers full and partial scholarships, similar to NCAA Divisions I and II, but typically at smaller colleges focused on student-athlete development. NAIA scholarships provide various levels of financial support, accommodating the diverse needs of athletes. These scholarships allow students to pursue their athletic and academic goals in supportive environments. Like NCAA scholarships, NAIA's financial aid ranges from full to partial, tailored to the student's needs and situations.

NJCAA (National Junior College Athletic Association)

The National Junior College Athletic Association (NJCAA) offers athletic scholarships at junior and community colleges, with options ranging from full to partial coverage. These scholarships are particularly beneficial for athletes seeking to enhance their skills and academics before moving to four-year institutions. The NJCAA's scholarships are designed to support athletes during their initial college years, providing a foundation for those planning to transition to other programs.

Various organizations, associations and private entities offer sport-specific scholarships beyond the traditional college athletic associations. These scholarships are tailored to athletes in particular sports. They may consider factors such as performance, potential, academic achievement or financial need. They provide additional avenues for athletes to receive financial aid, often acknowledging athletes' dedication, talent and community involvement. Use the NCSA's Athletic Scholarship search tool to find college athletic scholarships based on the sports you play.

Efficient use of scholarship funds can significantly reduce the amount of student loan athletes need, diminishing the financial burden post-college life can impose. Consider the following strategies to maximize scholarship benefits and ensure responsible fund management:

Name, Image and Likeness or NIL rights allow student-athletes to monetize their personal brand through endorsements and business ventures while retaining college eligibility. These opportunities, ranging from sponsorships to social media endorsements, offer a new revenue stream apart from direct pay for sports or school attendance. Student-athletes must report all NIL activities to their institution to remain compliant and informed about related state laws and institutional rules.

Ways student-athletes can leverage NIL rights include:

Although it’s tempting to focus only on the immediate financial gains, it's also important to consider how NIL contracts could impact your future career and long-term endorsements. What might seem profitable in the short term may not fit your broader goals and brand. With careful navigation and compliance, you can harness your name, image and likeness for significant personal and financial development.

When planning your finances, extend your vision beyond college years and consider your long-term financial future, including potential career paths and earnings. Recognize that an athlete's career path may significantly differ from other professions, as it is often marked by unique uncertainties and income fluctuations. With this awareness, you can develop financial strategies tailored to these nuances. Consider the following key steps to ensure you're on the right path to financially prepare for your athletic career.

MoneyGeek compiled a list of resources to help student-athletes manage finances and plan for athletic careers:

• Academy of Nutrition and Dietetics: Provides resources and guidance on nutrition, which is crucial for maintaining an athlete's health and performance.
• American College of Sports Medicine: Offers comprehensive information on sports medicine and exercise science, supporting athlete health and fitness.
• Athlete Network: Connects athletes with a network of peers, mentors and resources to advance their careers and personal development.
• Education USA: Offers information and resources for international students looking to study in the U.S., including athletes seeking scholarships and academic programs.
• MyMoney.gov: A government resource providing educational materials on financial management, budgeting, saving and investing.
• National Association of Intercollegiate Athletics (NAIA): Provides information on athletic programs, scholarships and resources for student-athletes at NAIA-affiliated institutions.
• National Association of Collegiate Women Athletics Administrators (NACWAA): Focuses on promoting the growth and success of women in collegiate sports, including resources and networking opportunities.
• National Collegiate Athletic Association (NCAA): Offers student-athlete resources, including eligibility rules, scholarship information and financial literacy programs.
• National Endowment for Financial Education (NEFE): A nonprofit dedicated to improving financial literacy and providing financial planning and decision-making education.
• National Junior College Athletic Association (NJCAA): Provides resources and support for student-athletes at junior and community colleges, including scholarship information.
• Next College Student-Athlete (NCSA): Assists student-athletes in finding college programs and scholarships, offering guidance on recruiting and financial aid.
• U.S. Department of Education's Office of Federal Student Aid: Offers comprehensive information on federal student aid, including grants, loans and work-study funds for college or career school.