Article – I’ve been following the financial literacy gap among student-athletes for years, and Penn State’s new initiative might be one of the most thoughtful approaches I’ve seen yet. After attending three collegiate athletics conferences in the past two years, the consistent theme from athletic directors has been clear: NIL opportunities have created an urgent need for financial education.
Penn State’s College of Education has secured a $247,500 grant to address this very issue, establishing what they’re calling the Student-Athlete Financial Literacy Initiative (SAFLI). The program comes at a pivotal moment when college athletes suddenly find themselves navigating complex financial decisions thanks to the NCAA’s 2021 policy shift allowing them to monetize their name, image, and likeness.
“Student-athletes are thrown into a world of financial decision-making that many aren’t prepared for,” explains Katie Gragnaniello, assistant teaching professor of education who will co-direct the initiative. The timing couldn’t be more critical – we’re seeing young athletes signing five and six-figure deals without the foundation to manage that sudden income responsibly.
What makes Penn State’s approach distinctive is its comprehensiveness. Rather than a one-size-fits-all workshop, SAFLI takes a three-pronged approach: professional development for coaches and staff, creating financial literacy curriculum specifically designed for student-athletes, and researching the program’s effectiveness. This holistic strategy recognizes that the entire athletic ecosystem needs alignment to truly support student financial success.
The three-year project, funded by the National Endowment for Financial Education, aims to create resources that can eventually extend beyond Penn State to benefit student-athletes nationwide. While speaking with collegiate financial advisors at last year’s Sports Business Journal conference, many expressed frustration at the lack of specialized resources for this unique student population – SAFLI could become the model program many institutions have been waiting for.
According to Ed Mansouri, co-director and associate teaching professor, the curriculum will cover essential financial literacy topics while addressing the specific challenges student-athletes face. “They have time constraints that other students don’t have. They have scholarship considerations and athletic eligibility considerations that other students don’t have,” Mansouri notes.
These specialized circumstances demand specialized solutions. The traditional financial literacy program often fails student-athletes because it doesn’t account for their unique circumstances – from scholarship implications to NIL contract considerations to the realities of balancing rigorous athletic and academic schedules.
Data from a 2021 Pew Research study revealed that only 34% of college students feel confident managing their finances, and student-athletes often face even greater challenges given their demanding schedules and sudden income opportunities. The financial decisions these young people make during their college years can impact their financial wellbeing for decades to come.
The initiative will begin with a pilot program involving 40 student-athletes from various Penn State sports, before expanding to the broader student-athlete population. This measured approach allows the team to refine their methods before scaling – a practice more universities would benefit from adopting when launching student support programs.
What particularly impresses me about SAFLI is its commitment to evidence-based practices. The research component will track outcomes and effectiveness, something sorely missing from many financial literacy programs. As Gragnaniello explains, “We’ll be assessing financial knowledge, attitudes and behaviors at different points throughout the program to determine its effectiveness.”
The Penn State initiative arrives at a moment when the collegiate athletics landscape continues its rapid transformation. With Congress considering federal legislation around NIL rules and colleges adjusting to the new reality of student-athlete compensation, programs like SAFLI represent an essential support system for young athletes navigating unprecedented territory.
For student-athletes at Penn State and potentially beyond, this program could prove transformative. Financial literacy isn’t just about understanding how to balance a checkbook – it’s about developing the critical thinking skills and knowledge needed to make sound financial decisions that can impact lifelong financial wellbeing.
As collegiate athletics continues evolving, the success of initiatives like Penn State’s will likely determine whether student-athletes truly benefit from their new economic opportunities or fall victim to the pitfalls that often come with sudden wealth. For now, Penn State is taking a significant step toward ensuring their student-athletes are equipped not just for athletic and academic success, but financial success as well.
