Female financial empowerment and the financial independence of women

Key topic

Apart from the obstacles and challenges which female athletes have in common with their male counterparts, they also have to face the additional pressure and obstacles that society and institutions impose upon them because of their gender.  This lesson explains important parameters that affect the financial independence of women and consequently long-term financial wellbeing.  In a world where knowledge and social equality are deemed as sacred objectives, circumstances reveal that there are predicaments that women should strive to understand and then overcome, in order to succeed financially.

Learning objectives

• Realize that an athletic career comes with a number of challenges.
• Don’t let public opinion and stereotypes overwhelm you. You know yourself, your conditions and your surrounding landscape better than anyone else.
• Formulate your personal financial identity which should be based on your individuality.
• Demand to be an equal member of the household; to be equally included in decisions and have equal responsibilities.
• Strive to achieve financial independence by familiarizing yourself with useful financial concepts and tools.
• Be the master of your personal financial and life plan.
• Be able to develop a greater career and life plan and project-manage it successfully.
• Create readiness to succeed in life.

Introduction

Although a lot has been done in order to tackle gender inequality in the household, the workplace and beyond, there are still deeply entrenched inequalities between men and women. These inequalities are the result of centuries of structural, cultural and societal obstacles that women have been forced to deal with and they extend to the sports industry as well.

There have been positive changes in the sports industry which have picked up over the last few years or so. We see a different identity emerging for female athletes; particularly in sports such as tennis and European football. Coverage is rising, interest is increasing, and marketeers have realized that by engaging more with female fans, they can sell more clicks, subscriptions, and merchandize. Nonetheless, there is still a long way to go.

In what follows, we discuss the challenges faced by female athletes and how they play into their financial future and their lives in general. We touch upon topics that include financial literacy, marriage, family, public opinion, and psychology that provide us with certain insights as to how female athletes can tackle their challenges and formulate a successful life plan.

The challenges of a female athlete’s career

Throughout the years, female athletes have been fighting for equality in sports and it’s something that we have come to respect and appreciate.  Few times though, have the fans considered the additional pressure that these athletes undergo to be able to keep up with expectations and life in general.  In fact, discussing athletes’ wellbeing or considering whether an athlete has the mental or emotional capacity to continue performing has long been a taboo in our society.  The challenges of an athletic career are many but we have narrowed them down to the following.

• Maintaining top athletic performance
• Dealing with child bearing and motherhood while pursuing a sports career
• Building and maintaining confidence and personal wellbeing (physical, mental & emotional)
• Maintaining integrity and staying away from temptations such as doping, gambling, match fixing, etc.
• Dealing with the reality of a short career, early retirement from sport, and preparing for life after sports
• Becoming financially independent by having a viable financial plan that will sustain the athletes throughout their lives
• Balancing relationships because an athletic career can easily distort personal/family relationships
• Developing and maintaining an image which is positively perceived by the public opinion

One of the most important challenges, particular to female athletes is childbearing and juggling their athletic and motherhood responsibilities.

Recent studies show that many female athletes are considering becoming or have become parents during their careers, but they often face significant barriers. This includes a lack of legal protections against discrimination, underrepresentation of women in key leadership positions, and limited childcare support within the sports industry. For example, the Unrivaled basketball league has made strides by providing childcare facilities for athletes, offering cribs, toys, and highchairs to make it easier for athletes to balance parenthood with their sports careers. These developments are part of a growing trend to better support athletes through more inclusive policies.

Having a child means you should accept that you are going to miss approximately a full year of your athletic career.  You will also have to accept that you might not be able to commit to the range of activities you did before motherhood, and you will probably miss a few practices.  However, you need to understand that your new role as a mother can coexist with your athletic career and that it is all a matter of adjusting and prioritizing.  Alex Morgan a decorated football player and co-captain of the most successful international female football team – US – said: “There are so many women that have been able to come back to their respective sport after pregnancy and continue to have a successful family while playing the sport that they love at the highest level.”

Some of the most celebrated names in the history of female sports became mothers during their careers and – a lot of them not in the latter years of their careers. Examples include:

Serena Williams is arguably the greatest tennis player of all time. She has won everything that can be won on the tennis court. She was eight weeks pregnant when she won the Australian Open in 2017. Serena confirmed that she found out about her pregnancy only a few days before the Open. Despite some serious complications during childbirth, Williams managed to return and has competed in another four grand slam finals since.

Allyson Felix holds the title of the most decorated athlete (both male or female) in World Sport Championship history with multiple Olympic medals and World Championships. In November 2018, she gave birth to a baby girl. Felix accused her main sponsor Nike for basically trying to punish her for her pregnancy by trying to stop agreed payments in a row that made world news. She returned in 2019 and won two Olympic medals in the Tokyo Olympics of 2020 [2021].  After the birth of her baby daughter, she said: “I’m more grateful when I come to the track. I used to take myself for granted, even the ability to run. That’s not the case anymore. I have a new motivation. Before, everything was consumed by winning. Now it’s still that, but the purpose and drive—I’m always thinking of my daughter. I want to be able to tell her what this is like, what being a strong woman is like, overcoming adversity, having strong character—that’s so important to me now. It’s monumental. This is the most confident I’ve ever felt. I’ve been thrown out of my comfort zone, and I’ve had to adapt. And I’ve grown because of that.”

Therefore, female athletes should not be discouraged, nor deterred by stereotypes when it comes to motherhood. They will still be able to have a fulfilling sports career and a family at the same time.  It is all a matter of personal choices and priorities.

Female athletes and sports integrity issues

An athletic career can bring with it a number of sports integrity issues such as doping, sports betting/gambling and match fixing.  Even though, statistics show that female athletes are much less prone to sports integrity issues, we will briefly discuss them so that they become aware of what forms and shapes they come in and become better prepared to deal with such situations, should they arise.

Sports Doping

The issue of doping in sports remains a significant challenge, despite ongoing efforts to curb its prevalence. In 2018, Ulrich, Pope, Cléret et al., published the results of an anonymized survey that was conducted in 2011-12 and asked more than 1,200 professional athletes whether they had ever taken Performance Enhancing Drugs (PEDs). The astonishing result was that 44% of respondents replied affirmatively. The topic of PEDs is a taboo in sports, but arguably the biggest problem that the industry has been facing since the introduction of controls in 1965 and their institutionalization in 1970.

While this study provides valuable historical insight, more recent research continues to shed light on the extent of doping in elite sports. A 2023 study revisiting data from the International Association of Athletics Federations World Championships and the Pan-Arab Games found that the prevalence of doping in elite athletes was estimated to be 30% at the World Championships and as high as 45% at the Pan-Arab Games. These findings reaffirm the persistent challenges in combating doping in sports and underscore the need for continuous and effective anti-doping measures.

Doping, which started in the 19th century with the use of alcohol and cocaine among cyclists, has nowadays morphed into an entire underground industry aided by advancements in the ever-innovative pharmaceuticals sector. Some of the most popular methods include steroids, blood transfusions, human growth hormones and EPO (Erythropoietin), and aim at increasing the athlete’s endurance and strength—according to some studies by up to 38%.

Recent data underscores the ongoing challenges in combating doping in sports. In 2022, the World Anti-Doping Agency (WADA) reported a 6.4% increase in the total number of samples analyzed, totaling 256,770, compared to 241,430 in 2021. This increase reflects a heightened commitment to anti-doping efforts.

In what follows, we will discuss some of the adverse effects of PEDs on athletes such as health, psychological and financial effects.

A large number of athletes who have been caught red-handed have shifted the blame to coaches, physicians, partners—in the case of the Russian Olympic team fiasco in 2018, the entire state apparatus—and expressed complete ignorance as to what was given to them. Whether they are to be believed or not, PEDs can have extreme side-effects on the individual. They typically include cardiac complications, headaches, nausea and dizziness.  In the case of women, side effects can range from reduced fertility to experiencing disturbed periods, facial hair and deepened voices. In their attempt to gain an edge in sports, athletes are quite simply jeopardizing their lives.

Psychological side-effects are also common, with many reporting rapid mood swings and paranoia, as a result of the strict schedule required to dope and its illegal status. On top of those, athletes who get caught have to cope with a variety of after-effects as well.  Suddenly finding yourself in the spotlight for the wrong reasons, along with the shame and disappointment it brings to your entire universe, is something you can hardly recover from.

As far as the athlete’s finances are concerned, the use of PED’s can lead to financial disaster. In the blink of an eye, sponsorships, scholarships, incomes, savings, physical assets could vanish. Marion Jones’ $1 million of endorsements gone; her $2.5 million home in North Carolina along with her mother’s house sold; and all that in addition to the $80,000 per race of forgone income and the five years she spent in federal prison.

Article 10(2) of the WADA regulations state that if you get caught once, you get a ban of two years—officially no games, matches even training—and the second time, signals a lifetime ban. Of course, only the lucky few get to strike number 2 because you are probably done the first time.

PEDs can have devastating effects on athletes whether female or not; financially, psychologically, on their wellbeing and their career.  At the end of the day, professional athletes should put everything into perspective and soberly do a simple cost-benefit analysis, in order to discover that doping is not worth risking everything they ever worked for. In a sense, it is like a house of cards; you might be able to evade the authorities for years and beat dozens of tests, but it only takes one for everything to crumble!

Sports Betting

Betting has long been ingrained in the cultural framework of sports, now viewed as a standard activity associated with competitions. While sports betting was not always as prevalent as it is today, significant legal changes, particularly in the United States, have accelerated its growth. In May 2018, the U.S. Supreme Court overturned a federal ban, allowing individual states to regulate and legalize sports betting. Since then, states like New Jersey, Pennsylvania, and Nevada have embraced sports betting, and more states are expected to follow suit. Meanwhile, online and mobile sports betting have surged, making it more accessible to fans worldwide. In countries like the UK, sports betting has been deeply rooted in the culture for decades, with regulated operators leading the charge.

Sports betting in itself is not inherently unethical or dodgy, but the behaviors and incentives it leaves behind can be malicious and outright illegal. From match fixing to illegal betting there are dozens of scandals that have shaken sports to their foundations and left officials, athletes and fans alike speechless. Scandals in sports are over a century old and have taken place in all parts of the world from the US to Italy and beyond.

One of the first recorded sports scandals in modern history was during the 1919 World Series when the Chicago White Sox squared off against the Cincinnati Reds. It is alleged that Joseph Sullivan—a professional gambler—bribed 8 players of the White Sox to lose the game. It is also alleged that the arrangement was organized by a gambling syndicate. The 1919 World Series fiasco is considered as one of the worst betting scandals in history.

Anyone who has engaged in sports betting recently will know that it is not just about who is going to win or lose. Nowadays you can bet on almost anything that the human mind can conceive; yellow cards, red cards, number of corner kicks, fouls—if you can think of it, it probably exists. Therefore, players are also susceptible to betting themselves in thinking, “What’s the harm in making an additional grand or two?” What better guarantee that Tara Johnson will get a yellow card in the first half than Tara Johnson betting that herself? One would argue that there are laws prohibiting athletes from betting on their teams, but then again, they can always have a friend/distant relative do it for them and it would be next to impossible to identify and prevent that.

Team officials and others might try to influence, and mess with, the performance of athletes in order to attain the outcome that they favor; after all, although we rarely think of it in those terms, athletes have bosses too and will most likely do as they are told. Of course, it is not just team officials. It could be relatives, fans, agents, and the list goes on almost endlessly.  Athletes need to have their guard on at all times, and they should stay away from any such activities, as they could prove to be disastrous to their career and life in general.

Match Fixing

Manipulating the result of a sports encounter is nothing new; games have been fixed for almost as long as sport has taken an organized form. From ancient times athletes and/or their trainers would be bribed to lose a fight or race, so the winner and their city or country would bask in the glory of their success. In the modern world, match fixing is found in almost every sport and the motives behind it are evident:

• Financial motives – people may try to make money through gambling on a fixture in which they know the outcome before it takes place because they have manipulated the result
• Sports motives – So that one of the game participants will gain an advantage, for example losing a match so you can face an easier opponent in the next round of a tournament

Globalization and the emergence of online gambling, legal and illegal, have amplified the issue by attracting the interest of organized crime, with criminals seeking to fix matches by reaching athletes, coaches and officials on a global scale, in any level of organized sport.

Athletes are in the heart of the problem, being the most common target for criminals attempting to manipulate the result of a fixture.  Sports organizations acknowledge that it is crucial to create efficient reporting mechanisms for athletes in order to fight corruption.  FIFPro for example, the global representative organization for all professional soccer players, has developed a phone app called “red button” that allows players to anonymously report their suspicions regarding a fixed match.

But even when reporting mechanisms are in place, coming forward to disclose information requires sacrifices from athletes on many levels and might have life-altering implications for them and that’s why ongoing multi-level support is essential for those who decide to come forward.

Nowadays, women’s sport is being watched and bet-on by more people than ever before.  In most female sports though, it is still a struggle to earn a decent living and this in itself raises the risk of involvement in match fixing.

Informing athletes about their options and rights when it comes to disclosing information and educating them on the rules of their sport in relation to betting and match fixing can help their voice become even louder.  Unfortunately, the current culture about disclosing information is more likely to discourage athletes from coming forward than encourage them.  As a result, it is crucial that sports organizations cultivate a culture of openness and trust, making it easier for athletes to speak out without fear of retaliation.

Advice for Female Athletes: Given the growing awareness of match-fixing in women’s sports, we encourage female athletes to be vigilant, stay informed about their sport’s rules regarding betting, and refrain from participating in any activities that could compromise the integrity of the sport. If athletes suspect match-fixing, they should report it immediately, as doing so, helps protect the sport and future generations of athletes.

Female leadership

Female leadership in sports is important in itself, but it is equally important for a host of other reasons. Granted that most females, as opposed to males, will not have the chance to play collegiate or professional sports, an opportunity is created for females in sports to engage in other forms of sport participation, including that of sport management, performance management, participation in sport governing bodies, which can be an important step in promoting equality in the industry generally. Indicatively, less than 50% of women’s college teams are coached by women.

The issue of female leadership goes beyond the sport industry. According to an EY survey, 94% of C-suite women have played sports, demonstrating that sport participation can cultivate leadership skills applicable in business careers. There is compelling evidence to suggest that role models are an important component for the development of females, whether that be on the field of play, in the office, in politics, or public service. Female sport role models (as are male role models for that matter) are important since adolescent girls are bombarded with images of external beauty, instead of images of quality characteristics, usually found in female athletes.  These role models can help offset the peer pressure and encourage girls to participate in sports and maintain a healthy lifestyle and develop qualities such as confidence, discipline, and teamwork. We encourage you to be role-models for your neighbourhood, college community, city or country.

Successful female athletes, particularly those who balance athletic careers with educational achievement, exemplify the importance of gaining an education while participating in sports. Their stories can encourage young girls to push themselves to excel both academically and athletically. With the increasing influence of social media, it’s more important than ever for young girls to have access to strong, positive role models who can help counteract the negative pressures they face online.

Ultimately, utilizing female sport role models should be considered as an advantageous tool, which could aid and inspire the younger generation of girls to realize their true potential, develop skills and character, but also become more demanding of themselves and of others. It is apparent from this new-era lifestyle, which we have adopted, that people are increasingly becoming more susceptible to mirroring, given the influence of social media on the younger generation and the partial isolation that comes with them. Utilizing role models is indeed a healthy and productive practice to counter that too.  Equal pay, equal opportunities, female empowerment are of essence in the development not only of the game itself, but of society too.

Female leadership can be developed through events and seminars, where female athletes present their testimonials and celebrate their success. Female athletes should push for social change by publicly urging people outside the sporting world, especially those in positions of power, to publicly praise and support female athletes and empower them to become role models themselves. The number of female role models in sport is increasing exponentially compared to 20 years ago and if as a child you couldn’t find a role model who inspired you, then consider becoming the role model you wish you had. The more we celebrate and encourage women in leadership roles, the more we pave the way for future generations.

Athlete wellbeing is paramount to having both a successful career and life

An athlete’s wellbeing is primarily concentrated on the following factors: physical, mental, emotional and financial wellbeing. All these factors are interrelated given that one affects the other and altogether affect the athlete’s ability to perform in the field and to lead a successful life. In short, wellbeing focuses on the athletes’ ability to understand their potential and be able to cope with the stress that comes with life’s everyday challenges. In an ideal situation, the athlete should be able to understand that while competition and striving for success are important, there’s life beyond sports and being an athlete is not what defines them as a person. The ability to be physically capable, financially independent and mentally stable allows an athlete to feel more secure, be happier and perform better on and off the court.

Nevertheless, an athlete cannot achieve wellbeing without being engaged with the broader society and that’s where athletes’ engagement comes into play. It’s important for athletes to be connected to their communities, share experiences and contribute in a meaningful manner in an attempt to “take off” their athlete hat and be treated as a regular human being. This allows athletes to connect with society not only professionally but also at a personal level, showing the world that there’s an individual that goes beyond the athlete. By being engaged, athletes improve their wellbeing which consequently makes them feel more comfortable with their body and better performers both on the court and in their everyday lives.

The conversation around athlete wellbeing and welfare has gained significant traction in recent years, particularly after high-profile cases such as Naomi Osaka’s decision to prioritize her mental health. Her stance brought much-needed attention to the importance of creating safe, supportive environments for athletes, both in training and competition, as well as ensuring their wellbeing outside of their professional lives. The broader discussion now includes fostering environments where athletes can develop skills beyond sport, which are crucial for their personal development and long-term welfare.

Our program is a complementary tool which enhances athlete welfare and wellbeing, and it adheres to the holistic model of athlete development.  It considers financial education to be a prerequisite of athletes’ wellbeing, and it emphasizes the need for athletes to understand their personal financial interests, be able to navigate through the risks of personal financial management and be prepared to safeguard their resources from the hard work they are putting in their sports careers.  Our program addresses the concept of a dual career and the need for athletes to create career outlets and options beyond the sport industry and also exploit their full potential.  We further address the needs that surface in the athletes’ post-sport career and ensure that athletes have educational skills to complement any other skills to be used in the job market.

Action Steps – Exercise 1: (10 minutes)

From a scale of 1 to 10 with 10 being the highest, how do you rate yourself on the following:

1. Physical wellbeing
2. Mental wellbeing
3. Financial wellbeing
4. Emotional wellbeing
5. Community engagement

Please justify the rating you have given yourself in each category

Overcome fears, stereotypes and public opinion

As athletes, you are taught to be brave, fearless, strong; success-driven, hardworking, respectful, confident, optimistic and ethical.  These are transferable qualities that people will tell you are necessary, as part of your soft skills set and it’s absolutely true; they can also be very helpful with your financial success, as they can be put to work to help you gain financial independence and sustainability.

Public opinion, as you already know from your sport experience, is not necessarily accurate and valid. It’ s based on limited/imperfect information, third-party perspective and based on a system of values and beliefs that are not associated with your own situation and challenges. So, make sure to weigh on public opinion appropriately and not let it govern your decisions. Don’t let others dictate your actions and your financial future. Public opinion includes friends and family as well. Whether or not you have strong bonds and feelings for those close to you, doesn’t mean you have to let their opinion influence your attitude and actions.

Often times women, especially, allow public opinion to get the best of them. They allow the fear of saying no to govern their actions and their financial decisions; to help others; to financially support the livelihood or lifestyle of those close to them, with a negative effect on their own financial future and financial independence. Especially when it comes to lending money or entering into business ventures, female athletes should be aware that if such decisions are guided by fear of saying no, or by fear of public opinion, they often tend to damage the financial standing of women.

Self-esteem is another important quality that women have been pressured to overlook. Their nature to care for others, raise children, put family first, often oppress the self-esteem factor that all women should have and leads to decisions not based on logic or facts that make sense, and often damage the efforts of women towards financial independence. Self-esteem is affected by both internal and external factors and is correlated with confidence, audacity and other characteristics. Arguably, self-esteem starts from within and although external barriers will always come about, women should nonetheless try to find that inner strength that will help them work on and improve their self-esteem.

While gender pay gaps and other societal inequities may not be easily overcome by individual action, you do have control over your financial decisions. Empowerment begins with understanding and addressing the internal and external factors that affect your wellbeing and self-worth. Acknowledging your right to financial autonomy is the first step toward safeguarding your future.

Fear of taking action to safeguard your financial interests, during a marriage or domestic partnership, is a prime example of how women find themselves trapped and later financially exposed. As already discussed, fear of public opinion, fear of saying “no” to family and friends are amongst the factors that endanger the financial health of women nowadays.

Rise above all these challenges and put yourself first. Especially given your status as an athlete, you for one should transfer the skills of courage, self-esteem, working under pressure and making good decisions, in your personal life. Distance yourself from what is potentially dangerous for yourself and use dialog and determination as tools to safeguard your financial future. Express your opinion to your loved ones and help them understand the importance of your financial independence and sustainability. Reflect on how you should block outside influences from your decision-making process, just like you block public opinion on your own athletic performance or your team’s performance and competition outcome.

Focus on your own financial management style, based on your own values and beliefs and your personal financial goals. Prioritize your best interests and look for ways to align those with the interests of your immediate family, only in a way which is not costing you or is not financially endangering you.

The financial vulnerability of female athletes

Despite the fact that professional athletes are among the highest-paid people in the world, they usually lack the financial knowledge that will enable them to manage their wealth effectively.  As a result, a great portion of athletes find themselves in financial disarray during or soon after their retirement.  The root of the problem lies in the “lack of knowledge” of athletes about money and finances. The solution lies in educating athletes financially so that they can cope with all the bad externalities that will always be around. Female athletes, however, have to contend with additional constraints and obstacles arising from the inequality between male and female sports. Although the situation is rapidly changing, not so long-ago gender inequality in sports was rampant.

The Numbers tell the Story

Pay Gap:

• Basketball: As of recent data, the average salary for a WNBA player is approximately $120,000, whereas an NBA player’s average salary is around $7.7 million.
• Tennis: Tennis has been a pioneer in gender pay equity, with equal prize money offered at the four Grand Slam tournaments since 2007.

Sponsorships:

• In 2024, women’s elite sports were projected to generate over $1.28 billion in global revenues. Despite this growth, women’s sports still represent just 10% of sponsorship dollars and 15% of media coverage compared to men’s sports.

Notable Earnings:

• In 2024, tennis star Coco Gauff led female athlete earnings with $30.4 million, including $21 million from endorsements. However, this is still significantly less than top male athletes; for instance, Cristiano Ronaldo topped the men’s earnings list with $260 million in the same year.

Who are you financially?

We all spend an enormous amount of time exploring and discovering who we are, seeking to understand our identity as an individual. We need a name and an identification number to claim our physical space in the world, our actual existence, to start with.

Science has been developed around emotional intelligence, about getting to know oneself, being in touch with inner thoughts and feelings, understanding how this inner process affects behaviour and attitude.

But have you ever considered your financial identity as a person? Do you exist financially? If yes, who are you financially?

Financial identity or financial footprint is the set of information, actions and plans that show that you exist financially, they show who you are, what you are doing to achieve financial independence and what you plan to do to achieve financial sustainability. It can be as simple as a bank account, a debit card number with a four-digit pin that is linked to your bank account. It can be your social security number and tax identification number; it can be your monthly/annual budget, or it can be your financial plan to save money for retirement, or a combination of all these elements.

Financial identity is a theoretical construct that is used to identify people in terms of their financials, but also to promote principles of good practice in the handling of personal finances. Perhaps the most important aspect of a personal financial identity is the so called “Credit Score”. A credit score is a statistical number that evaluates a consumer’s creditworthiness and is based on credit history. Credit history is a record of a consumer’s ability to repay debts and demonstrated responsibility in repaying debts. This information is all contained on a consumer’s credit report. Your credit score consists of several financial facts, such as number of bank accounts, total levels of debt, and repayment history. Lenders use credit scores to evaluate the probability that an individual will repay loans in a timely manner. A person’s credit score has a range and the higher the score, the more financially trustworthy a person is. Good credit scores and credit history are essential for a smooth life, as it affects every financial decision you make as well as financial decisions that others make for you, in relation to your requests.

In many parts of the world, financial independence for women has improved significantly. However, some women still find themselves without a distinct financial identity. They may rely entirely on a joint bank account with their spouse or, in some cases, not have a bank account at all. Others may not earn their own income and instead depend on their partner for financial resources, both for household expenses and personal needs.

Studies suggest that women are often less involved in managing household finances. Some do not participate in budgeting decisions or are unaware of the exact costs of household expenses such as utilities, mortgage payments, and insurance. Additionally, a significant number of women lack a personal financial plan, do not contribute to long-term savings, and are not engaged in major financial decisions.

This lack of financial involvement can have long-term consequences. Without experience in managing daily finances, women may miss opportunities to build financial knowledge and independence. In some cases, financial dependence can make individuals more vulnerable to economic instability, manipulation, or unexpected financial burdens, such as debt accumulation.

While financial roles within a household can be a matter of personal choice, it is essential that all individuals, regardless of gender, have a clear understanding of their financial situation. Developing financial literacy and maintaining some level of financial autonomy can provide greater security and stability for the future.

Creating your own financial identity

The road to financial independence and long-term financial wellbeing is like a marathon, or a tournament or any sort of other competition, for which you have been training, and it starts with the development of a financial identity. It takes endurance, hard practice, dedication and discipline; a trial-and-error period, with many small wins and losses that add up towards a bigger cause, where through practice you learn, grow and develop, in order to improve and succeed.

The first necessary steps are your personal identification number, social security number, tax identification and so on. This is your starting kit—that you should already have anyway—but if you don’t, make sure to acquire them by asking a trusted advisor to help you.  Acquiring a social security number and a personal tax identification number will show that you have a physical presence, that you exist, no matter how funny or weird it may sound.

Then you should start thinking about your financial goals, just like in your sport; short-term, medium term and long-term ones; the things you want to achieve and a plan to get there. Your top priority in your plan is management style; your attitude towards money, your spending habits, your financial priorities, your views towards the second and third part of your life. Adopting a money management method is important in developing your financial identity.

Then you should set up a sort of “paper trail” that will help you build your financial identity. A simple bank account for starters, with a debit card, which will serve as your base station or training camp. Everything starts from there, receiving your salary, making payments, transferring money to a savings account and so on.

In today’s landscape, especially for athletes in collegiate or amateur ranks, Name, Image, and Likeness (NIL) rights create an important opportunity to start building your financial identity even earlier. NIL deals allow athletes to earn income from sponsorships, endorsements, appearances, and personal branding while still pursuing their education and sports careers. Understanding how to manage, protect, and grow these opportunities — including opening dedicated bank accounts for NIL income, keeping accurate financial records, and planning for taxes — is crucial for long-term financial success. Athletes like gymnast Olivia ‘Livvy’ Dunne have demonstrated how a strong NIL strategy can contribute to early financial empowerment and independence.

One of the most important aspects of building this “paper trail” is the need to build a credit history, which will translate into a credit score. In today’s world, your ability to function financially is directly related to these two principles, hence you are strongly advised to pursue them as a top priority and adhere to a prudent lifestyle and spending habits, to build and maintain a very good credit score.

In building a financial identity you will need to acquire a basic understanding related to financial principles, models of good practice and so on. Your participation in this program is an excellent choice as the financial education you receive through our program will help you design and implement a plan that will support your financial future.

Additionally, you should remember that a financial identity is a highly individualized and private part of your life. It should not mimic anyone else’s identity, unless there is a fundamental agreement in it; doing what your parents do or have told you to do, or following your spouse’s/partner’s actions, or doing what friends or teammates have said you should do, is not recommended. At the same time, you should safeguard your financial identity from theft, misuse and fraud as these are highly common occurrences. Also, as it is common now to use online and mobile platforms for banking, investing, and financial management, it’s important to stay alert to cybersecurity risks. Scams, phishing emails, fake financial apps, and identity theft are common threats. Always verify that banking or investment apps are legitimate before downloading, use strong passwords, enable two-factor authentication, and monitor your accounts regularly. Just as you protect your physical health, protecting your digital financial health is essential to safeguarding your resources and maintaining your financial independence.

Action Steps – Exercise 2 (10 minutes):

Let’s assess our financial identity level by answering Yes/No to the below questions:

• Do you have a social security number? ___
• Do you have a bank account on your name with a debit card linked to it? ____
• Do you have credit cards? ____
• Do you pay your bills regularly, on your own? ___
• Do you have a savings account? ____
• Do you have a monthly budget? ____
• Have you made any investments so far? ____

Answer: If you have up to 2 Yes, you need to work on creating your financial identity.

If you have between 3 and 5 Yes, you are on the right track, but you need to keep working on growing your financial identity.

If you have 6+ Yes, you have an established financial identity and you are in charge of your financial life.

Basic financial knowledge is key to financial growth

We often see women that don’t invest time in financially educating themselves; they don’t put the effort or time to think about their financial situation, their obligations, their financial future; they don’t participate in budgeting, or planning how to save. Often times it’s not only about social circumstances but also about basic financial knowledge.

Basic financial knowledge is key to personal financial growth. Learning how to open a bank account may sound foolish, but you should know how to do it. Balancing your check book or filling in a simple tax return form helps you save money and keep track of your financial movement. Understanding how banks use interest and how interest compounds, can help you start a savings plan that will aid your future financial independence.

Women who don’t have the basic knowledge are in essence financially handicapped. They have to rely on others to help them, they have to trust the process and the system to work flawlessly and are highly vulnerable to financial burdens; these are imposed either by a faulty system, or by canning individuals, frauds, who intentionally wish to financially harm others.

The best way to protect yourself, protect your financial identity and achieve a healthy and sustainable financial future is to invest in your financial education which will equip you with the practical knowledge that will guide your actions and give you the required experience.

The depth in which we go into certain concepts will progress with this program but for now let’s define a few basic concepts that are of paramount importance in your financial education

Disposable income:  The amount of money remaining after the deduction of taxes and social security, which is available to be spent or saved.

Active income:  It is income received from a job or business that you actively participate in.  It is income earned as a direct result of a specific effort.

Passive income:  It is income earned by not having to actively work for it, by having your assets work for you.

Savings: The amount of money which you are left with after you have subtracted all your obligations (eg taxes) and expenses (spending) from your income (disposable income) and that you have decided to set aside. This money can be used as a safety net and/ or for investment purposes

Investment: You can think of investment just like the purchase of any other good with the difference that instead of consuming it, you instead use it to generate income at a later date. An investment is therefore an asset or item acquired with the goal of generating income.

Budgeting:  Budgeting is the process of constructing your budget (revenue and expenses). A budget is a summary of your expected income and expenses for a period of time, usually a month or a year. A budget should be periodically reviewed.

Financial independence: Financial independence means that you have your own financial identity and the means to survive without depending on third-parties be they parents, or spouses.  In addition, financial independence means that you do not have to actively work to generate the money you need to live on, but instead you have accumulated assets which generate income for you.

Action Steps – Exercise 3 (5 minutes)

What does financial independence mean to you?  How do you envision it?

Real-life Examples (5-minute discussion):

When talking about female athletes the first name that comes to mind is usually that of the best (female) tennis player of all time, Serena Williams. Everybody knows that Williams is a living legend, a global megastar in the world of sports; but what many don’t know is that she is also a business tycoon.

Information regarding her corporate endeavors can be found on the relevant website—Serena Ventures. ‘Serena Ventures invests in companies that embrace diverse leadership, individual empowerment, creativity and opportunity’ and her long-term vision is to encourage collaborations, act as a medium for the development of business relationships and train entrepreneurs of the future.

Therefore, Williams’ financial identity extends far beyond the world of sports. She seized the opportunity that her tennis career afforded her, in terms of financial resources, and used it to expand her financial identity in the demanding and (still) male-dominated world of business, while at the same time, trying to reshape the narrative of that world by promoting gender equality and diversity.

Can you think of any other way that this real-life example affects our conception of financial identity?

Female athletes and changes in marital status

Marriage, cohabitation or divorce are a personal choice that constitute the basis of personal freedom to decide how and with whom, if not alone, you spend your life. They lead to new beginnings that may bring about a lot of changes in your personal and financial life.

Women who do not have the basic financial knowledge often find themselves struggling to set up their financial life. After a break-up, women who have not in the past developed their own financial identity are suddenly in uncertainty of how to proceed and they may enter a reinforcing loop due to the absence of good credit history and subsequent good credit score. In the case of divorce, a new beginning might imply the separation of assets between spouses, but also the separate undertaking of past financial obligations such as loans and mortgages; in the later scenario, the lack of basic financial education and the absence of financial resources to hire trusted professionals to advice and support you, might lead to unfortunate results.

This doesn’t imply that your decisions should be governed by financial conditions, however, it does imply financial preparation and good knowledge to be able to successfully facilitate the transition into marriage or from marriage to divorce. Marriage/ marital status does not have to be the defining feature of your lives, and your financial identity should be formulated based on your personality and should not depend on your spouse/partner, etc.

Become an equal financial partner in the household

One of the most critical steps in cultivating your financial identity, is your involvement in the financial operations of your own household. Provided you are single and living alone, you are by default the operator and decision maker of the household finances, but in any other situation you should strive and demand to be fully involved with what goes on in the house in terms of finances.

For starters you should have a say in the management style and philosophy, as it affects you directly and influences your own status. Secondly, you should demand to have a say by accepting to also share the responsibility, which is the actual cost. You should pitch in to the expenses, especially if you are already benefiting from the household income; it’s a two-way street that will allow you to have a say in how money is handled and will help you gain more respect from others. Even if you do not bring in income and contribute to the household otherwise, you should still demand to be involved.

Direct involvement will help you gain knowledge and experience on how to run a household financially. It will expose you to the realities of doing business with banks, authorities, other financial institutions and the “real world” more generally. It will also create an extension on your “paper trail” that will help you enhance and improve your credit history and your credit score. It will help you establish a precedent, if under any circumstance your living arrangement or home partnership of any sort must change, giving you a legal tool, which will be utilized for your own protection.

Do not expect your spouse/partner to provide for you; do not expect others in the household to carry your load of work; being fully engaged in the process is a learning experience, it’s a gratifying experience but also a fundamental skill, should there be a change during your life.

Make your marital status irrelevant to your financial freedom

According to the Organization for Economic Co-operation and Development (OECD), the United States are included in the global leaders for rates at which divorces and break up of domestic partnerships occur. The OECD’s Society at a Glance 2024 report highlights that divorce rates have decreased by 10% on average across OECD countries in 2020, with significant drops in places like Mexico, Chile, and Slovenia. However, breakups and divorces continue to pose financial risks, particularly for women.

We have already discussed how the lack of gender equality affects women’s median income, putting it below that of men’s. As of 2022, American women typically earned 82 cents for every dollar earned by men, compared to 80 cents in 2002 (Pew Research Center, 2023). Add to it the fact that the majority of break-ups that include children, result in the custody being given to mothers, while the U.S. Census Bureau reported in 2018 that only 44% of custodial parents receive the full amount of child support.

Research from the London School of Economics (LSE) found that women who worked prior to, during, and after their marriages experienced a 20% decline in income as their marriages ended. Men, on average, experienced an income rise of 30% or more post-divorce. At the same time, the poverty rate for women who’ve left their marriages is 27%—nearly triple the figure among men. Factor in that women have longer life expectancies, lower incomes, and fewer years in the workforce, and it’s easy to understand why such a change can be detrimental for women’s financial health.

The above facts may appear to be frightening, but at the same time they give us insights as to what women need to do in order to protect themselves. Obviously, no person should lead a life based on fear or financial threat, but given that life is one big roller-coaster, women need to safeguard their personal (and financial) interests. If you haven’t already noticed, it all adds up to becoming financially independent and effectively preparing for unfortunate scenarios. Developing your financial identity, being an equal financial partner in the household, claiming equal responsibility and enjoying the rewards equally, are all elements of protection and personal investment, should circumstances unexpectedly change.

Despite of your input on the household finances, it’s best to keep some kind of personal financial support too. It could include a savings fund or an investment fund of some sort; anything that would help you through a rough time. Assets and responsibilities should at all times be split in such a way that if something changes you are not stuck with only the responsibilities and the cost of loans, mortgages, credit card debts etc. Take steps to improve, even protect, your credit history and your credit scores. Create your own credit cards, department store cards and so on and detach yourself from any joint accounts that are not related to the household’s or your own financial operations.

Faith and trust within a house are based on the willingness of both sides to do the same thing for one another.

Action Steps – Exercise 4 (5 minutes)

Read the following statements and answer whether you think they are True (T) or False (F).

1. Women take longer to repay their student loans. [T/F]
2. Women earn less than men [T/F]
3. More men live in poverty after retirement compared to women [T/F]
4. Female-headed households are better-off financially than male-headed households [T/F]
5. In 2013, only 30% of venture capital was handed to women executives and 70% to male executives [T/F]

So how accurate were you?  Take a look at the answers below.

Answer sheet
1	True
2	True
3	False
4	False
5	False

Gender equality and its effect on women’s financial independence

One of the main social issues of today’s world regarding gender equality is the pay gap. Women do the same exact work and for the same exact time as men, only to receive less money than men. There is no fixed percentage of variance, as that depends on the country or the type of occupation and position, however, the pay gap that exists is causing women financial problems that are neither fair nor easy to overcome.

Women, for example, take longer to pay off student loans. A 2016 study by the American Association of University Women, found that women were behind men in paying off their loans by at least 11% in the first five years post-graduation.

The fact that women are saddled with student loan debt for longer than men, affects women’s financial lives in much broader ways; by earning less, not only they take longer to pay off their debts, but additionally they are less able to save money for retirement, emergencies, or major investments like buying a home. According to a 2015 study on self-reported savings, men who were able to save for emergencies saved about twice as much as women who were able to save.

The pay gap also means that women earn less than men over the course of their lifetimes, which translates to a lesser retirement income as well, since their retirement income is based on their career earnings.  Given that women might take pauses in their careers or decrease hours due to caregiving for their family and children, their income is even more reduced as women receive less income from social security and pensions.  A 2024 report by the National Council on Aging found that women considered themselves less financially secure and were more uncertain about how to plan and save for retirement compared to the previous year. Additionally, women had less than one-third of the median savings of men and were more likely to delay retirement due to caregiving duties. The result is that than 12% of women over the age of 65 and almost 15% of women over 75, live in poverty. By age 75, women are twice as likely to live in poverty as men of the same age.

In 2022, the poverty rate among women was 11.8%, compared to 10.5% for men, highlighting the continued economic disparity between genders. The situation is even more concerning when examining household composition. Nearly 24.3% of female-headed households without a spouse lived in poverty, almost double the 12.4% poverty rate for male-headed households without a spouse. In contrast, married-couple households had a significantly lower poverty rate of just 4.7%. These figures emphasize the ongoing financial challenges faced by women, particularly single mothers and female-led households, who remain disproportionately affected by economic instability.

If you look at businesses that are headed by females, or have female leadership influencing the business, the problem of funding is also very persistent. Access to venture capital funding remains a significant challenge for female entrepreneurs. In 2022, female-founded companies received only 2% of all venture capital investments, which highlights the continued funding disparity. Despite this, studies have shown that female-led companies often outperform male-led companies in various metrics, including profitability and growth potential. Research also reveals that businesses with all-male teams are more than four times as likely to receive venture capital funding compared to teams with at least one woman.

The difference in pay between athletes can vary by millions of dollars and this difference can be justified by their different levels of skill, popularity and quality. But when it comes to women athletes, they seem to be paid at a whole different scale from their male counterparts in the same sport, to such an extent that even the examples seem hard to believe.  In the Forbes 2024 ranking of the highest-paid athletes, Coco Gauff ranked 10th with earnings of $30.4 million, including $21 million from endorsements, while Iga Świątek ranked 37th. Despite their success, the earnings of these top female athletes are still significantly lower than those of male counterparts. For instance, Cristiano Ronaldo topped the list with a staggering $260 million in earnings, securing the #1 spot.

The gender pay gap in sports has gained more public attention in the past few years, due to the enormous support and publicity the two global gender equity and fairness movements #MeToo and #TimesUp have received. The two movements have provided a forum for women to express their experiences of sexual harassment and assault, misogyny and bullying as also inequality in the workplace, including wage disparity.

Putting aside the obvious and fair demand for equal pay, the money disparity makes it almost impossible for many skilled women to follow a career in sport, while on the other hand less talented men get the chance to earn their living through sports. It is even harder for women to become professional footballers for example, with men making up 99% of all professional footballers than becoming surgeons (82% men), university presidents (72% men) or astronauts (89% men).

To conclude, gender inequality in sports varies from sport to sport, but it is evident that it still is largely an issue affecting promotion, investment and support. While there have been improvements in the industry regarding the topic of inequality, even ‘equal’ sports such as the UFC still need to keep this momentum going if they are to reach an end goal of complete gender equality in sports.

Action Steps – Exercise 5 (15 minutes):

Answer the following multiple-choice questions. These questions touch upon all topics covered in this lesson so far. Detailed explanations of what the best approach is and why will follow.

1. A local newspaper published an article that describes your most recent athletic performance as abhorring and that you should not be chosen to start the next game. How do you react?
2. You let it undermine your self-confidence
3. You do not care what they say about you. After all, what does it matter? You’ll still get paid at the end of the month
4. It does not really matter. What really matters is what your coach says and the fact that you know you are trying your best. If you have a bad day/week/month you’ll work harder and you’ll improve
5. A local tabloid entangles you in an amorous affair with a married player from the local football team. How do you react?
6. You start a PR war.
7. You don’t pay attention. Tabloids will be tabloids.
8. You sue them.
9. You have recently married your high-school sweetheart who is an accountant for XYZ Tax Advisory. He suggests that since you are a professional athlete who spends long hours training should delegate all financial matters of the household to him. What do you do?
10. Agree but be explicit that you still want to be kept in the loop
11. Divorce! How dare he? He’s trying to pull one on you
12. Sure thing! I don’t like financial things anyway
13. Your wife/husband suggests that after 2 years of marriage you should start depositing all your money in a single jointly owned account to benefit from things such as loans, interest rates and so on!
14. No way! I want all my money to myself
15. But we can discuss the possibility of opening a joint account where we deposit a part of our incomes.
16. Sure, and let’s get a bigger house
17. Karina is an 18-year-old volleyball player who plays for the local team. She receives $2,000 a month. After she pays rent and buys all her necessities, she has $500 left which she deposits in a separate account because she eventually wants to go to university to study Economics. This is an example of:
18. Financial Independence
19. Budgeting
20. Saving
21. Investment

Answer sheet:

There are no really correct answers to these questions but there are certain approaches that are generally preferable to others. What we want to get across is the type of mentality that you should have/develop.

1. Option A is definitely a defeatist’s approach. People like to talk, let them talk. You can’t just let everyone’s opinion get to you; get under your skin.

Option B is perhaps the opposite side of Option A. Yes, you shouldn’t concern yourself with everything negative that they say about you but there is huge difference between standing on your ground and being arrogantly indifferent

Option C is probably the most sensible thing to do. You recognize that you had a bad game, but you don’t pay attention to what the press says. Your coach is the person who you should listen to evangelically and rely on for constructive criticism and improving.

2. Option A carries many pitfalls because tabloids feed on controversy and public stunts and stand-offs. If you actually start fighting back in public, then you’re doing them a favor. You should not go with this option.

Option B is actually a sensible course of action. As stated above, tabloids feed on controversy and the reproduction of stories; if you refuse to give them that, then the article’s life cycle will probably be short-lived

Option C is not a black/white answer. Again, it depends on the extent of damage done to you. We can’t argue that it is the worst course of action, but you’ll be giving them what they want; reproduction of the story

3. Option A is the best approach since as we have pointed out throughout this lecture you should always demand to be kept in the loop regarding financial matters of the household and familiarize yourself with financial concepts and tools

Option B. No. Let’s not overreact

Option C is not the smartest choice. You should never delegate your financial responsibilities to anyone. You never know how life will turn out to be. What will you do if you suddenly find yourself on your own without the necessary knowledge to make it? Or even worse, what if your partner runs with all your money?  There are endless undesirable but very real possibilities.

4. Option A is probably a selfish thing to do. Having a joint account where you both deposit some money is not a bad idea

Option B is probably the most sensible and responsible action. A joint account for household-related expenses.

Option C should be up for discussion. You can explore the possibility of buying a new house but that does not mean that you should put all your eggs in one basket. Again, you never know how life turns out. You need a degree of financial independence for that rainy day should it arrive.

5. Option A is wrong. If in doubt check the definitions above

Option B is wrong. If in doubt check the definitions above
Option C is correct! As previously stated, saving is when you set aside a portion of your disposable income after expenses to use at a later stage

Option D is not entirely wrong! Since Karina wants to study and going to university is a form of investment then Karina is SAVING for the purpose of INVESTING. Therefore, this is not an investment YET. Once Karina enrolls in a college and pays her fees then that’s when the investment begins

The skills female athletes need to design and project-manage their life

To design your desired life plan you need to be aware of who you are, your special skills and of course your weaknesses.  In addition, you need to understand where you are in life right now and what, in broad terms, are your life goals.  These life goals should cover the different aspects of your life such as health, family, relationships, career and finances.

We all need a plan to go through life and if you don’t have one, now it is a good time for you to come up with a working draft of this life plan.  Your plan needs to include and cater for your personal life, work or business life as well as your financial life, considering your values and what matters most to you.

If you have not done it already, you need to start thinking about what you want to accomplish in your life and what your mission is.  If you have not already discovered your passions and talents outside of sport, maybe now it is a good time to look into that.  Given that you are a professional athlete, it means that you are passionate about sports; however, there must be other things that you are passionate about or at the very least good at.  Do not exclude your other passions or talents from your life plan.  Embrace them and include them in your life plan, even as an option.  We all know that sports careers are difficult to build and don’t last long, therefore you need to have all your options open and available.

To build a successful career and life plan you need certain skills, and these skills are the ones they don’t usually teach you at school.  Financial and life skills do not usually form part of formal education, and most people develop these skills through trial and error, by dealing with uncertainty, failures, and whatever life brings to them.

Our purpose here is to equip you with these skills which will enable you to build the life you aspire to have and deal well with whatever life brings.  You must have already developed a number of these life skills as part of your sports career: discipline, consistency, grit, determination, resilience.  We will supplement these skills with simple financial concepts so that you acquire a well-rounded view of how finances work in every phase of your life and how you can create a financial plan that will serve your greater life plan.

Action Steps – Exercise 6 (10 minutes):

Ask the athletes the following questions and try to get at least 4 to 5 answers from different people to have a meaningful discussion with the whole class.

1. Have you been thinking about your greater life plan and what you want to accomplish in life?
2. Do you ever think about your post sports career, what you could be doing and the fact that sports will not be a part of it?  How do you feel about that and how can you get yourself ready for such a case?
3. Do you know what you are good at, outside of sport, and how you can use that in a future non-sport career?

Overview of the financial and life skills program and how it helps female athletes

This course seeks to assist female athletes in all aspects of their lives that are unrelated to their athletic performance. It has been designed and tailored around the challenges, tasks and realities that female athletes have to face off-the-pitch. Our objective is to introduce you to basic yet necessary financial concepts and techniques. By fusing theory and practice, we will inform you about the financial vulnerability of athletes as well as the impact of the transition from professional sports to post-sport life, with everything it entails. We will then delve deep into financial concepts such as banking, debt, investments, interest rates and advice on assembling a team of advisors, commercializing your sports brand and so on. Throughout this course you will engage with these concepts and techniques in a practical fashion so as to enable you to absorb them in full and utilize them when implementing your financial and life plan.

We set below the roadmap of the course along with its components and the desired learning objectives.

• Financial Psychology

Financial psychology relates to our behavior towards personal finances and financial decisions regarding money, budgeting, investing and so on.  Family, society and culture play a huge role in the development of the athlete’s financial psychology.  Money is a social tool, and our attitudes, beliefs and practices connected with it are heavily influenced by the people who surround us.  In this lesson we discuss how the pursuit of money is all about trying to meet either emotional or psychological desires and identifying these desires will give female athletes greater control over their financial behavior.

• Advisors that Make you a Winner

Female athletes are advised to have a support circle which will help them in the implementation and management of their financial and life plan.  They first have to deal with fulfilling their support needs by having a mentor, an athlete mindset and performance coach, etc.  In addition, athletes need to become acquainted with how to assemble a competent financial team to help them design their financial future.  There are important lessons to be learned from a plethora of athletes who have financially failed, and this is what we are communicating to athletes in this lesson.  A common denominator often, is the trust athletes have placed in the wrong professionals.  We have all heard of a number of cases all over the world, where lawyers, accountants, investment advisors, agents, etc. have defrauded athletes by advising them to invest in various potentially “high and fast profit” schemes.  In a lot of cases, athletes not only lost the money they had originally invested but also ended up being accused of tax fraud.

 

• Personal Financial Planning & Money Management

Personal financial planning is a lifelong process, and female athletes are guided through the specifics of it in this lesson.  Athletes are and will be making financial decisions all their life; sometimes they will foresee situations and plan deliberately, sometimes, well, things just happen, and they will be forced to make instant decisions.  Creating their financial game plan means making deliberate decisions now that will allow female athletes to get closer to their goals while reflecting the realities of being an athlete.

• Banking, Credit & Debt

It is very important for female athletes to develop an understanding about how banks work so that they can manage their banking to their best interest.  Properly managed bank accounts can reduce expenses and protect the athletes’ personal information.  Making purchases on credit is a major part of everyday life to the point that it is being frequently abused and may be transformed into excessive debt which is not manageable.  By understanding ‘good’ and ‘bad’ debt, female athletes will be able to utilize debt when and where it best suits their overall financial and life plan.  In this lesson we present the basic banking operations that most closely relate to the athlete’s current and future needs and discuss the different banking risks associated with credit, debt, and credit history.  Moreover, this lesson discusses the risks of loans and being in debt, as well as presents ways of keeping debt under control.

• Risk Management & Insurance

It is important for athletes to identify and manage potential risks as well as recognize different types of fraud so that they can take measures to protect themselves from such risks.  Athletes can protect themselves and their personal finances in a number of ways, whether that means buying different types of insurance to cover basic and sport specific needs, protecting their wealth and their family or limiting the disastrous financial effects of a divorce.  This lesson outlines the elements of risk and insurance.  It also discusses the concepts associated with risk and insurance and offers advice as to how professional athletes can treat these elements at different points of their lives, both within and outside of sport.

 

• Investments & Creating Wealth

Bad investment decisions contribute greatly to the financial problems of athletes.  Athletes in general have been an easy target for many shady financial predators, who promise them ‘sweet deals’ with huge returns in a short period of time.  With so many ‘get rich quick’ schemes out there which try to sell the improbable dream, athletes need to have the knowledge which will help them make educated decisions for themselves and control their emotional responses to risk and the market.  In this lesson we will go through the process of getting prepared to invest and we will pinpoint what to look out for and what the risks are.  We will also look into the importance of investment diversification, and we will go over real estate investment.  At the end of the lesson, we will present the ‘being investment ready’ checklist which will inform athletes whether they are aware of what they need to know to become investment ready.

• The Economic Environment, Contracts & Taxes

Personal financial planning is affected by several macroeconomic factors.  Therefore, when female athletes plan their financial lives, they should consider conditions in the wider economy and the markets that make up the economy. Since professional athletes enter into various types of contracts, whether sports contracts, sponsorship contracts, endorsement contracts, etc., it is important that they are well-verse with some basic information about contracts and how taxes affect their income.

• Building and commercializing your Personal Brand, Name, Image and Likeness

Professional athletes have a relatively short career playing sport, living most of their life from earnings made off the field, which is why it is important that they are proactive when it comes to their financial planning. One of the many pillars of good financial planning is building the athlete’s personal brand in order to maximize their earning potential off the field, during and after their sports career. Indeed, an athlete’s sports career may end, but a strong brand will continue to exist, assisting in building wealth beyond the athlete’s playing years.  By developing their personal brand, professional athletes will be able to monetize the success of today in the long-term.  A well-crafted brand strategy can transform an athlete from a sports-related VIP to a business-related VIP with a lifetime duration.

 

• Retirement from Sport & Post-Sports Career Development

Every athlete will retire from sport at some point.  Research shows though, that athletes are often unwilling to plan in advance for their post-sport careers.  The transition to a post-sports career becomes even harder because most athletes don’t have any previous work experience in a full-time job and may have missed out on education due to their sporting commitments.  In order to avoid suddenly finding themselves lost, athletes need to plan ahead for life after sports.  In this lesson we provide an overview of the world of work as well as entrepreneurship and we present athletes with various post-sport job career and entrepreneurial options.

Through this program, athletes will:

• Realize that a sports career is short and that they need to have a greater life plan.
• Learn to consult and surround themselves with trustworthy professionals.
• Be able to set a budget and follow it.
• Be conservative with their finances.
• Learn to say “NO” to family and friend requests for money.
• Prepare themselves for a second career.
• Make smart financial decisions.

In short, the targets of this program are:

• To alert athletes of the necessity of a greater life plan
• To give athletes the tools to design, implement and project-manage their life plan and adapt it as needed
• To make sure that athletes obtain a basic financial understanding, which will help them make sound financial decisions because such decisions usually have a lifelong impact
• To educate athletes, so that they are able to identify who the right people to advise them are and create a strong support system which will help them realize their full potential to thrive financially
• To make athletes aware that developing their brand and working on their personal marketing strategy will help them stay up-to-date and in the spotlight for much longer than how long their athletic miracles endure

Lesson wrap-up

During this lesson we discussed the main challenges faced by women athletes and pointed out that gender plays a significant role in their everyday life; whether we are talking about financial freedom and independence, or the opportunities that women are afforded compared to men, there are discrepancies as we’ve seen. We also discussed the importance of establishing a distinct financial identity and examined certain financial concepts such as savings and investment, and social phenomena such as public opinion and more generally obstacles and realities that women athletes have to face, while trying to give you a taste of what the remaining of this program will focus.

At this point, we will wrap-up today’s lesson.  First, we will go over the learning objectives of this lesson and we want your feedback as to whether they have been achieved, and then we will address any questions you may have.  Please feel free to ask anything you’d like in relation to today’s lecture, and we would love to hear how the concepts we discussed today relate to you and your greater life plan.