James Thrash
Manager, NFL Player Engagement
This is a very exciting time for many student-athletes at the college level. Being invited to a college all-star game is being recognized as a student-athlete who had a successful football season. It also means that they have been identified as having the potential to try out for a NFL team. With such a tremendous opportunity comes a tremendous responsibility. With such a great possibility ahead of these young men, decisions will have to be made. As part of the decision-making process, NFL Player Engagement and FINRA set out to give these college all-star participants more tools to make better financial decisions. When it comes to learning about finances, you can never know enough.
We have a representative from FINRA and two of our NFL Ambassadors (who are former players) co-present for an hour. The presentation starts out by stressing the importance of understanding investment fraud. As part of the presentation, we focus on a few of the stories that have been made public of people losing a fortune due to unscrupulous investors and investors that are not registered. We also show an average profile of someone who has been a victim of fraud. The average victim demographic is male, financially literate, college-educated, recent change in financial or health status, higher income, and risk taker. Part of the prevention measures taught in the presentation are being alert to persuasion, reducing exposure, and using a registered financial advisor.
Managing money is a very important part of the presentation. Learning to identify the difference between needs and wants is crucial. There is a lot of talk about avoiding debt. Among 18 – 34 year olds, 23% spend more than they earn. 68% have no rainy-day funds set aside, and 34% use non-bank payday lenders, pawn shops, etc. Each participant is handed a sample budget. Normally a good rule of thumb is that if you can’t afford it, don’t buy it.
We end the presentation with giving helpful resources to the college all-star participants. We also allow for questions. Our goal is to make sure that not one participant leaves without having his questions answered. Dealing with finances is a private process. People normally do not feel comfortable sharing their specific situations. The NFL Ambassadors bring a lot to the presentation in that they have been there and done that. It helps to bridge the gap between the material and real life. The men are more inclined to listen to someone that they can relate to. The humble environment created results in an environment more conducive to learning. The better equipped these young men are, the better the decisions they will make.
Visit www.finra.org/Brokercheck for more information.