Athletes and the importance of early financial education

The relationship a person has with money is shaped early in life. Typically, people learn about money—what it is, how to deal with it, and how to feel about it—by observing and imitating their family. However, relying solely on parents, who may not have strong financial literacy, to teach children about money isn’t the most effective way to build responsible financial behaviour. Financial literacy education should be a core part of any school curriculum to ensure long-term effectiveness.

It’s never too early to start teaching children basic personal finance. Doing so can shape their financial future and help them avoid common money mistakes later in life. As early as three years old, children begin interacting with others, developing social and emotional skills, and forming interests that may stay with them throughout their lives. This is also the time when children begin to form lifelong money habits. These habits can be developed by giving children personal economic experiences, like receiving pocket money or depositing money in a piggy bank.

Level of Children’s understanding

By the age of six, children can understand that money is not only for spending, but also for saving, investing, or donating. With this understanding, they can begin learning to plan ahead, budget, and make decisions independently, such as saving money for a new bicycle by doing chores.

Between the ages of twelve and adulthood, teenagers should understand concepts like the difference between emergency funds and savings. They should also recognize the difference between wants and needs, and develop critical thinking skills to avoid making impulsive financial decisions. Young athletes, in particular, should be prepared to manage the money they earn when signing their first contract and understand the basic financial concepts included in the agreement.

New Generations

New generations are growing up in an increasingly complex financial world, and they will eventually need to take charge of their own finances. The Covid-19 pandemic has highlighted the urgent need for early financial education, revealing the financial vulnerabilities and unpreparedness of many, including athletes, who had to rely on their savings during the crisis. More stakeholders are recognizing that adopting good financial habits at an early age is a key component of long-term financial wellness. Sports bodies, schools, and universities should prioritize implementing financial literacy programs.