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FINANCIAL LITERACY

Build Wealth Beyond Sports

Learn how to manage, save, and grow your NIL income—so you're set for life, not just college.

The Harsh Reality:

78% of NFL players

go broke within 3 years of retirement. Don't be a statistic.

$47K
Avg NIL Earnings
D1 athletes (2024)
35%
Goes to Taxes
If not planned correctly
82%
Have No Budget
Young athletes surveyed

Financial education designed specifically for NIL athletes

Budgeting 101 for Athletes

A budget isn't about restricting yourself—it's about controlling your money instead of your money controlling you.

The 50/30/20 Rule (Athlete Edition)

50%

Needs

Essential expenses

  • Rent/housing
  • Utilities (electric, water, internet)
  • Groceries & meal prep
  • Transportation (car, gas, insurance)
  • Phone bill
  • Minimum loan/debt payments
30%

Wants

Lifestyle & fun

  • Eating out / ordering food
  • Entertainment (movies, concerts)
  • Streaming subscriptions
  • New clothes & sneakers
  • Hobbies & activities
  • Gym membership (non-team)
20%

Savings

Future you will thank you

  • Emergency fund (3-6 months expenses)
  • Tax savings (30% of NIL income)
  • Investment accounts (Roth IRA, index funds)
  • Extra debt payments
  • Business fund (gear, content)

For Athletes: Consider 50/20/30 instead—flip wants/savings to prioritize your future

Real Budget Example: $3,000/month NIL Income

Your Income:

NIL Deal Payments $3,000
- Taxes (30%) -$900
Take-Home $2,100

Where It Goes (50/30/20):

Needs (50%) $1,050
Wants (30%) $630
Savings (20%) $420

Result: You save $5,040/year + $10,800 for taxes. After 4 years of college = $20,160 saved + no tax surprises!

Recommended Budgeting Apps

YNAB (You Need A Budget)

Best for: Zero-based budgeting, being intentional with every dollar

$14.99/month

Mint (Free)

Best for: Auto-tracking, seeing all accounts in one place

FREE

PocketGuard

Best for: Simple "how much can I spend today?" view

Free + Premium

GamePlan Card Auto-Budgeting

Best for: Athletes—auto-saves 30% for taxes, categorizes NIL income

Built-in

Pro Budgeting Tips

  • Pay Yourself First

    Move 20% to savings IMMEDIATELY when NIL money hits your account

  • Use Separate Accounts

    1 for spending, 1 for savings, 1 for taxes—makes budgeting automatic

  • Review Weekly

    Spend 10 minutes every Sunday checking your budget—catch leaks early

  • Track Every Dollar for 30 Days

    You'll be shocked where money goes—$5 coffees add up to $150/month

  • Plan for Irregular Income

    NIL isn't a salary—budget based on lowest expected monthly income

Ready to Take Control of Your Money?

Use GamePlan Card's automatic budgeting features designed for NIL athletes

Get GamePlan Card

Tax Strategy for NIL Athletes

Taxes are your biggest expense as a self-employed athlete. Plan smart and keep thousands more in your pocket.

Quick Tax Calculator

If You Earn... You'll Owe... Set Aside
$5,000 ~$1,400 28%
$10,000 ~$2,900 29%
$25,000 ~$7,700 31%
$50,000 ~$16,500 33%
$100,000 ~$35,000 35%

*Estimates include Federal + Self-Employment + average State tax. Always consult a CPA for exact calculations.

The Golden Rule: Save 30% for Taxes

Every time NIL money hits your account, immediately transfer 30% to a separate savings account. Treat it like it's already gone—because it is (the IRS owns it).

$1,000 NIL payment → Move $300 to "Tax Savings" account → Spend/save the remaining $700

Common Tax Deductions

These business expenses LOWER your taxable income (save receipts!):

  • Content Creation: Camera, phone, editing software, lighting, props
  • Professional Services: Agent fees, CPA, lawyer, marketing
  • Travel: Mileage to brand events, hotels, flights (work-related)
  • Tech & Software: Website, social media tools, design apps
  • Training Gear: Equipment for content (if not provided by school)
  • Meals: 50% deductible if business-related

NOT Deductible

These DON'T count—don't try to write them off:

  • Personal expenses: Clothes you wear daily, personal travel
  • Team gear: Provided by school/team
  • Gym membership: Unless exclusively for content creation
  • Groceries: Unless specifically for content (food reviews)
  • Fines/penalties: Speeding tickets, late fees

IRS audits happen! Only deduct legitimate business expenses with proof.

Quarterly Estimated Tax Payments

If you earn $1,000+ in NIL income, the IRS requires you to pay taxes quarterly (not just at year-end). Miss these and you'll owe penalties.

Apr 15

Q1 Payment
(Jan-Mar earnings)

Jun 15

Q2 Payment
(Apr-May earnings)

Sep 15

Q3 Payment
(Jun-Aug earnings)

Jan 15

Q4 Payment
(Sep-Dec earnings)

GamePlan Card: We calculate and remind you of quarterly tax deadlines automatically

When to Hire a CPA (Tax Professional)

You CAN Do It Yourself If:

  • • You earned under $5K in NIL
  • • You have simple income (one or two deals)
  • • You kept good records all year
  • • You're comfortable using TurboTax or similar

Hire a CPA If:

  • • You earned $5K+ in NIL
  • • You have multiple income streams
  • • You want to maximize deductions
  • • You're confused or overwhelmed
  • • You can afford it ($300-1,000 typically)

Cost of CPA ($500) vs. Cost of tax mistakes ($2,000+ in penalties) = Worth it at high earnings

Savings & Investing Basics

Your athletic career has an expiration date. Building wealth ensures you're set for life, not just college.

Step 1: Build Your Emergency Fund FIRST

1

Starter Fund

$1,000

Covers minor emergencies (car repair, phone)

2

Basic Safety Net

$3K

1 month of expenses—breathe easier

3

Full Protection

3-6 Mo

3-6 months expenses—ultimate security

Why This Matters for Athletes:

  • NIL income is unpredictable—deals can fall through
  • Injuries happen—you need backup when you can't earn
  • Prevents going into debt for emergencies

Where to Keep Your Savings

Traditional Savings

0.01% APY

Your regular bank's savings account

Easy access

FDIC insured

Basically earns nothing

RECOMMENDED

High-Yield Savings

4-5% APY

Online banks (Marcus, Ally, Capital One 360)

50-500x more interest

FDIC insured

Still easy access

Money Market

4-5% APY

Hybrid checking/savings account

High interest

Can write checks

Often requires $2,500+ minimum

Pro Tip: If your savings is earning less than 4%, you're losing money to inflation—switch to high-yield ASAP

Investing 101: Growing Your Wealth

When to Start Investing:

  1. 1
    After emergency fund: You have 3-6 months expenses saved
  2. 2
    After high-interest debt: Credit cards paid off (NOT student loans—those are low interest)
  3. 3
    When you have extra: Money you won't need for 5+ years

Investment Options for Beginners:

Roth IRA

Tax-free growth forever. Contribute up to $7,000/year. Best first investment account.

Index Funds (S&P 500)

Own a piece of 500 biggest companies. Historically 10% annual return. Set it and forget it.

Target-Date Funds

Automatically adjusts risk as you age. Easiest hands-off option.

The Power of Starting Young:

If you invest $200/month starting at age 20:

$1.17M

at age 65 (10% annual return)

If you wait until age 30 to start:

$442K

at age 65 (same $200/month)

Starting 10 years earlier = $728K more (same effort!)

Investment Traps to Avoid

Crypto (as a beginner)

Unless you understand blockchain deeply, this is gambling. You can lose everything overnight.

Individual Stocks

95% of day traders lose money. Stick to index funds until you're experienced.

NFTs / Meme Coins

Speculation, not investment. Most go to $0. Don't gamble your NIL money.

Get-Rich-Quick Schemes

"Turn $500 into $10K in 30 days!" = scam. If it sounds too good, it is.

Whole Life Insurance

Sold as "investment" but terrible returns. Just get term life + invest separately.

Borrowing to Invest

Never invest with loans or credit cards. Only invest money you actually have.

Your Simple Wealth-Building Plan

1

Save 20% of Every Check

Into high-yield savings + tax account

2

Build $5K Emergency Fund

Then never touch it unless true emergency

3

Open Roth IRA, Invest Monthly

Start with $100-200/month in S&P 500 index fund

Get Financial Tools for Athletes

Credit Basics: Build It Right

Your credit score determines if you can rent an apartment, buy a car, or get a business loan. Build it early, protect it fiercely.

Understanding Credit Scores

300-579

Poor

Will struggle to get approved

580-669

Fair

High interest rates

670-739

Good

Average rates

740-799

Very Good

Better than most

800-850

Exceptional

Best rates possible

What Makes Up Your Score:

Payment History
35%
Credit Utilization
30%
Credit History Length
15%
Credit Mix
10%
New Credit
10%

How to Build Credit (Step-by-Step)

  1. 1

    Get a Student or Secured Credit Card

    Discover Student, Capital One Quicksilver Student, or secured card with $200-500 deposit

  2. 2

    Use It for Small, Regular Purchases

    Gas, groceries, Netflix—things you'd buy anyway. Charge $50-200/month max.

  3. 3

    Pay the FULL Balance Every Month

    Set up autopay. Never carry a balance. Treat it like a debit card.

  4. 4

    Keep Utilization Under 30%

    If your limit is $1,000, never have more than $300 owed at once

  5. 5

    Be Patient—It Takes Time

    6 months to get a score, 12-24 months to build good credit

Credit Card Rules for Athletes

DO:

  • • Use it for cash back/rewards on things you'd buy anyway
  • • Pay off FULL balance every month (no interest!)
  • • Track spending in budgeting app
  • • Request credit limit increases after 6-12 months
  • • Keep old cards open (even if unused) for history

DON'T:

  • • Carry a balance to "build credit" (myth—just costs $)
  • • Apply for multiple cards at once (hurts score)
  • • Max out your card (tanks utilization score)
  • • Miss payments—even once tanks your score
  • • Close old cards (shortens credit history)

Why Good Credit = Thousands of Dollars Saved

Buying a $30K Car

760+ credit score: 5% APR
620 credit score: 12% APR
Difference: $5,600 more in interest

Renting an Apartment

Good credit: Normal deposit
Bad credit: 2x deposit
Or: Application denied entirely

Starting a Business

Excellent credit: $50K loan
Poor credit: Denied
Impact: Can't scale your business

How to Check Your Credit (Free)

Free Credit Score:

  • Credit Karma: Free score + monitoring
  • Your bank/credit card: Many provide free FICO scores
  • Discover Credit Scorecard: Free for everyone (no account needed)

Full Credit Report:

  • AnnualCreditReport.com: Official site—1 free report/year from each bureau
  • • Check all 3 bureaus: Experian, Equifax, TransUnion
  • • Look for errors (30% of reports have mistakes!)

Pro Tip: Check your credit report every 4 months (rotate the 3 bureaus) to catch fraud early

Top 10 Financial Mistakes Athletes Make

Learn from others' expensive mistakes—avoid these traps and you're already ahead of 90% of athletes.

1

Lifestyle Inflation: "I'm Rich Now!"

The Trap: Sign first NIL deal for $10K → immediately buy new car, designer clothes, upgrade apartment, go out every night

What Happens:

Money gone in 2 months. Now stuck with expensive lifestyle you can't afford if deals dry up.

The Fix:

  • • Live like you're still broke for first year
  • • Build $10K+ savings before upgrading lifestyle
  • • Increase spending slowly (10% per deal)
  • • Remember: This income might not last forever
2

Ignoring Taxes Until April

The Trap: Spend all your NIL money throughout the year. Tax season hits: "Wait, I owe $15,000?!"

What Happens:

Panic. Beg parents for loan. Payment plan with IRS (+ penalties). Credit card debt.

The Fix:

  • • Move 30% to separate account IMMEDIATELY
  • • Treat that money as "already spent"
  • • Pay quarterly estimated taxes
  • • Use GamePlan Card auto-tax-savings feature
3

Lending Money to Friends/Family

The Trap: "Bro, can you spot me $500?" → becomes $5,000 over time → never see that money again → relationship ruined anyway

What Happens:

You're broke. They avoid you. Awkward Thanksgivings. Resentment builds.

The Fix:

  • • Only "loan" what you can afford to NEVER see again
  • • If you help family, call it a "gift" not a loan
  • • Learn to say: "I'm saving for my future"
  • • Real friends won't guilt you about money
4

No Emergency Fund = Financial Anxiety

The Trap: Living paycheck-to-paycheck (deal-to-deal). Car breaks down or get injured → panic mode

What Happens:

Credit card debt. Bad deals out of desperation. Stress affects performance.

The Fix:

  • • Priority #1: Save $1,000 bare minimum
  • • Goal: 3-6 months expenses in savings
  • • Keep it in high-yield savings (liquid)
  • • Only touch it for TRUE emergencies
5

Signing Deals Without Reading Contracts

The Trap: Brand offers $5K → you sign immediately without reading fine print → turns out it's $5K over 2 years with 40 posts required

What Happens:

Locked into bad deal. Can't work with competitors. Effective rate = $62.50/post.

The Fix:

  • • READ EVERY WORD of the contract
  • • Have lawyer review deals over $5K
  • • Negotiate payment terms, deliverables, exclusivity
  • • Use GamePlan Deal Review service
6

Mixing Business & Personal Finances

The Trap: All money goes into one checking account. NIL income, parents' support, birthday money, student loans all mixed together

What Happens:

Tax time = nightmare. Can't track business expenses. Miss deductions. Audit risk.

The Fix:

  • • Open separate business checking account
  • • Get business credit card for expenses
  • • Use accounting software (QuickBooks, Wave)
  • • Makes taxes 10x easier
7

Buying Liabilities Instead of Assets

The Trap: First big check → buy $50K car, designer wardrobe, expensive watch. All lose value immediately.

What Happens:

Car worth $35K next year. Clothes worth nothing. You're broke with depreciating stuff.

The Fix:

  • Assets: Stocks, real estate, business (grow value)
  • Liabilities: Cars, clothes, watches (lose value)
  • • Rule: Buy assets FIRST, luxuries LATER
  • • Build wealth, then reward yourself
8

Not Tracking Where Money Goes

The Trap: "I made $20K this year, where did it all go?" No budget, no tracking, just vibes.

What Happens:

Death by a thousand cuts. $10 here, $50 there. Nothing to show for it.

The Fix:

  • • Track EVERY expense for 30 days (brutal honesty)
  • • Use Mint, YNAB, or simple spreadsheet
  • • Find your money leaks (food delivery, subscriptions)
  • • Awareness = first step to control
9

Falling for Get-Rich-Quick Schemes

The Trap: "Invest in my crypto project!" "Join my trading course—make $10K/month!" "This NFT will 100x!"

What Happens:

Lose $5K+ in scams. "Promoter" disappears. You're embarrassed to admit it.

The Fix:

  • • If it sounds too good to be true, it is
  • • Never invest in what you don't understand
  • • Stick to boring index funds (they work)
  • • Wealth is built slowly, not overnight
10

Thinking "I'll Figure It Out Later"

The Trap: "I'm young, I'll worry about money when I'm older." No plan, no strategy, just winging it.

What Happens:

Wake up at 30: No savings. Bad credit. Missed opportunities. Playing catch-up.

The Fix:

  • • Start TODAY—time is your biggest advantage
  • • Small good habits compound over years
  • • Future you will THANK current you
  • • Financial literacy = life skill, not optional

Don't Learn the Hard Way

Join thousands of athletes building smart financial futures with GamePlan NIL's education, tools, and community support

Free financial literacy resources • GamePlan Card with auto-budgeting • CPA-reviewed tax guidance