Have Questions About Financial Literacy For Student Athletes
Financial literacy is the possession of the set of skills and knowledge that allows an individual to make informed and effective decisions with all of their financial resources
A college budget is similar to an annual budget, but it is designed specifically to help students deal with the varying costs of tuition and expenses throughout the year.
Needs point out the something you must have for survival. On the other hand, wants refers to something which is good to have, but not essential for survival. For the purpose of spending and saving money wisely, every person must know the difference between needs and wants.
A qualified student loan is a loan you took out solely to pay qualified higher education expenses that were:
- For you, your spouse, or a person who was your dependent when you took out the loan;
- For education provided during an academic period for an eligible student; and
- Paid or incurred within a reasonable period of time before or after you took out the loan.
A Pell Grant is a subsidy the U.S. federal government provides for students who need it to pay for college. Federal Pell Grants are limited to students with financial need, who have not earned their first bachelor’s degree, or who are enrolled in certain post-baccalaureate programs, through participating institutions.
The Fair Pay to Play Act, originally known as California Senate Bill 206, is a California statute that will allow collegiate athletes to acquire endorsements and sponsorships while still maintaining athletic eligibility. The bill would affect college athletes in California’s public universities and colleges.
To compete in NCAA-sanctioned sports, students must maintain both their amateur and academic eligibility. The former varies from Division I to III, but basically it means not accepting money to compete or benefits to sign with an agent. Students have to remain amateurs in order to retain academic eligibility. At D-I and D-II schools that equates to earning at least a 2.0 GPA and competing 14 to 16 core courses per year. (Students must also hit a prescribed standardized test score.) The NCAA uses a five-year clock, which allows students to compete for four years within five years of enrolling. Student athletes should register and get more information at the NCAA Eligibility Center.
As the amateur eligibility rules imply, college athletes do not get paid a salary to play. However, in 2014, under pressure from advocacy groups and court challenges from former players, the NCAA allowed five large conferences to provide money to students for things a scholarship won’t cover — including clothes and entertainment, known collectively as the “full cost of attendance.” Some schools can now provide athletes with several thousand more dollars per year, if they choose.
Schools typically require athletes to carry medical insurance to practice, do team workouts and play in games. Sometimes this insurance, which covers injuries, is paid for by the college. Students must check with their program to see if they have the insurance — and, if so, to what extent (and dollar amount) they’re covered. In cases of injuries that knock them off the team, students may lose their athletic scholarship, and with it the medical help from the school. That’s because most NCAA scholarships are one-year renewable awards (although the NCAA has allowed four-year scholarships since 2011). Superstars with a path to the pros can buy loss-of-value insurance that pays out in case of a catastrophic injury, but as of 2016 only two players have ever collected payments.
During the season, the NCAA caps the hours a student can participate in practices, workouts and games at 20 hours per week. During the off-season, it’s eight. Yet Inside Higher Ed reported NCAA surveys showed that players in some sports actually spend around 40 hours on athletic activities during the season. And college athletes can spend just as much time in the gym during the offseason as during the season. The NCAA has penalized school athletic programs in the past for requiring students to attend “voluntary workouts” during the off-season. If time limits aren’t being enforced, athletes have the right to register a complaint with their school athletic director, the commissioner of their athletic conference or the NCAA.