Rookies in NFL Need Money Management Awareness

[easysurfer]

Interesting article in USA Today about how rookies aren't aware of the need for money management.

Money management a difficult lesson for NFL's rookie class - USATODAY.com


From the article:

According to a Sports Illustrated report published last year, 78% of NFL players will become bankrupt, divorced or unemployed within two years of retirement.

 

[aaronc879]

According to a Sports Illustrated report published last year, 78% of NFL players will become bankrupt, divorced or unemployed within two years of retirement.

Shouldn't 100% of people be unemployed after they retire. Isn't that the point?

 

[ziggy29]

Shouldn't 100% of people be unemployed after they retire. Isn't that the point?

Most people who retire from their first career-based occupation at 35 or 40 aren't retiring *completely* and permanently. As another example, I don't think most folks who join the military at 18 and retire at 38 are retired from all work for good. Not many folks would have their desired lifestyle met as a 40 year old with *nothing* else but their military pension.

Having said that, NFL players have a chance to save and invest a LOT more than the typical 20-and-out military person and if they invest prudently and don't live extravagantly, many of them could retire at 35 never needing to work again. But so many of them have trouble adapting to suddenly having a lot of money. This is often most true for those who grew up with very little. It doesn't sink in that it's still possible to spend even a $5 million annual salary way too fast to secure you for life.

 

[BigMoneyJim]

Teaching money management sounds like a great idea, but ask yourself this question: who decides what will be taught?

Make financial education a requirement, and is it going to be Dave Ramsey and Vanguard index fund curriculum, or will Ameriprise, BoA, Fidelity, Merril Lynch, Prudential, Charles Schwab et al brag about their proven financial wisdom and design and dictate the curriculum?