Financial Literacy

Most of the time, many of these young black athletes live beyond their means. Through financial literacy, trying to support their entire family, and acquiring a lump sum amount too soon are three main reasons why some young black professional athletes fail to sustain financial stability, while others young athletes avoid such situations. The financial rise and fall of young black athletes is perplex in understanding. The root of the problem seems as if these athletes usually turn professional before their 20s and normally have not graduated college. This is may be an essential period in gaining an understanding of financial security that is often learned.
Low financial literacy makes many young black athletes, who have little experience with managing any value of salary, vulnerable to suffering losses in high-risk investments. Since most of the athletes are drafted during college or right after college, and the National Collegiate Athletic Association, these players do not get paid. So, they are not generally experienced with money and often do not have good role models as investors. This concept shows up in a poor understanding of how investments work and what constitutes realistic returns and reasonable fees. Often, these young athletes authorize too much and oversee too little. They allow people with no financial background to manage their property. Namely, Michael Vick’s cousin, Davon Boddie, ran a dog fighting corporation under Michael Vick’s finances, and was arrested on drug charges. He gave Vick's property as his address, giving authorities probable cause to obtain a second search warrant for animal cruelty.This shows how a young professional athlete chose a poor person to advise his funds. Some trust others, such as their family members, to pay routine bills and act as an advisor to big financial deals. Many athletes also gravitate toward tangible business ventures such as restaurants, car dealerships, and stakes in new inventions. For example, Michael...