The financial reality of today’s young athletes
New research reveals smart choices, significant opportunities and the growing need for specialized guidance
Today's young athletes are defying stereotypes about professional sports figures and money management. New Merrill research reveals a generation of financially savvy young athletes who prioritize saving and investing while navigating unprecedented earning opportunities through name, image and likeness (NIL) deals.
The study of 159 high-potential U.S. athletes in their late teens and early 20s uncovers where thoughtful decision-making meets unique challenges. With 74% expecting $25,000 or more from NIL deals and sponsorships in 2025, these athletes face financial complexities that require specialized guidance.
Young athletes prioritize financial security over luxury spending
Today's young sports professionals demonstrate remarkable financial discipline. Athletes allocate 36% of their sports earnings to saving and investing — their top financial priority — while dedicating only 6% to luxury items.
Projected spending allocation
36% goes to saving and investing — their top financial priority
25% supports personal wants — with only 6% going to luxury items
21% supports others — including family and charitable giving
17% covers basic needs — essential daily expenses
Most athletes have experience with savings accounts (98%), checking accounts (92%) and credit cards (69%), with one-third (31%) maintaining investment accounts.
NIL deals create substantial income but navigation challenges
NIL opportunities have transformed the financial landscape, creating significant earning potential and complex challenges.
NIL demonstrates significant financial impact
68% have NIL deals or opportunities in progress
32% earned $10,000+ from NIL deals in 2024
Despite widespread participation, 61% report struggling with NIL navigation. The challenges include worrying about exploitation (38%), fearing scams or unethical deals (36%) and finding contracts complex and confusing (36%).
Athletes with NIL deals show greater interest in learning investment strategies.
The confidence-reality gap reveals opportunity for professional guidance
A disconnect emerges between athletes' confidence and complex realities. While 80% rate their financial literacy as "good" or "excellent," 32% feel financially insecure, 21% report financial stress, and only 48% maintain a budget with just 19% sticking to it consistently.
Athletes currently seek guidance from parents and guardians, online research and friends and teammates. These sources may fall short when addressing unique athlete challenges like NIL negotiations and industry-specific tax considerations.
Resources used for information on managing finances
Parents and guardians (72%)
Online research (62%)
Friends and teammates (38%)
Overwhelming demand for specialized financial guidance
The research reveals remarkable openness to advisor relationships, with 88% expressing interest in working with financial advisors. Currently, only 8% work with advisors.
Athletes want to learn about:
Investing (82%) — moving beyond basic saving to wealth-building strategies
Tax planning (61%) — managing NIL income tax implications
Building credit (60%) — preparing for major purchases
Key concerns motivate athletes to seek guidance: 74% wish they had saved more money over the past year, 40% fear losing money through bad decisions and 29% worry about not earning enough to support their goals.
Building on strong foundations
Today's young athletes represent a financially responsible generation making thoughtful choices while facing complexities that require specialized guidance. Athletic careers can involve compressed earning timelines and significant income growth at young ages, making early financial decisions crucial. Young athletes who recognize this and establish relationships with specialized financial advisors early may better position themselves to maximize both immediate opportunities and long-term wealth building.
To explore how specialized financial guidance can help maximize athletic earning potential and build lasting wealth, read the full research report and connect with a Merrill Sports & Entertainment advisor to discuss your unique situation and goals.
Connect with a Sports & Entertainment Advisor today.
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