$100 Today, $1M Tomorrow: Why NIL Starts with Parents!

If your athlete landed a big NIL deal tomorrow, would they know what to do with the money? Would they spend it all at once? Would they even know how much to set aside for taxes? These aren’t just hypothetical questions—they’re real challenges young athletes face when suddenly handed large sums of money.

When we talk about NIL, most parents think about big-brand deals and six-figure contracts. But before your athlete is making money moves, they need to know how to manage money—period. And that starts at home, way before NIL is even on the table.

Think about your athlete’s spending habits right now. Are they grabbing Chipotle or Chick-fil-A every day? Tally that up at the end of the month—$10 a day quickly turns into $300. Imagine if they’re pulling in NIL money and keeping those same habits with no real understanding of where their money is going.

NIL has created incredible opportunities, but the reality is, many athletes aren’t financially prepared for what comes with it. The best way to prepare? Start small. Teaching financial responsibility early—through something as simple as an allowance or a set budget—can set the foundation for managing NIL money down the line.

The Power of an Allowance

It might seem like a stretch to compare a weekly allowance to a six-figure endorsement deal, but the principles are the same. If an athlete grows up understanding how to budget, save, and make thoughtful spending decisions, they’ll be much better equipped to handle NIL income.

Consider this: If your athlete gets $20 a week, how do they manage it? Do they spend it all immediately? Do they save a portion? Do they understand the idea of prioritizing needs over wants? These small habits translate directly to handling larger amounts of money later on.

Instead of just covering their expenses, start giving them control. If you normally spend $50 a month on cereal, snacks, and drinks for them, hand them that $50 and let them make the decisions. Do they buy the name-brand cereal or stretch their money further? It forces them to think about trade-offs, which is exactly what they’ll need to do when NIL money starts rolling in.

Budgeting for Bigger Paydays

A lot of young athletes make money decisions based on what they see in the moment—not long-term planning. NIL money doesn’t come with a financial advisor attached, so without financial literacy, it’s easy to mismanage earnings.

Simple lessons like setting up a bank account, tracking spending, and saving a percentage of every dollar earned can go a long way. Your athlete should already have an online banking app on their phone. Make sure they know how to deposit money, transfer funds, and even understand withdrawal and ATM fees. A lot of athletes have no clue that taking cash out from the wrong ATM could cost them $3-$5 every time. Those little fees add up!

What If You’re Still Learning, Too?

Not every parent grew up with strong financial habits, and that’s okay. This is a chance for you to learn alongside your athlete. Start with small changes—maybe track your spending for a month, set up a savings plan, or get familiar with budgeting apps. There’s no shame in learning now. If you need guidance, find a financial expert online who resonates with you, take a basic money management course, or even watch a few YouTube videos. Small steps build habits, and those habits will shape your athlete’s financial future.

NIL Money Comes with Responsibilities

Unlike an allowance, NIL money isn’t just free cash—it comes with contracts, obligations, and taxes. Many young athletes don’t realize that a $100,000 deal isn’t actually $100,000 in their pocket. Taxes alone can take out 30% or more, and depending on the deal, they may have to pay agents, lawyers, and other professionals.

This is why starting financial lessons early is crucial. Before they ever sign an NIL deal, an athlete should know:

• How much money they actually keep after taxes and fees

• The importance of saving and investing

• How to handle financial obligations, like paying for training, travel, or even supporting family

A Parent’s Role in NIL Financial Readiness

You don’t need to be a financial expert to help your child prepare. Even small things—like having them manage their own allowance, giving them a budget for back-to-school shopping, or opening a bank account with them—can build financial confidence.

Here are some action steps:

1. Start the conversation – Ask your athlete what they would do if they got a big check tomorrow. Talk through possible pitfalls.

2. Create a budget together – Whether it’s their part-time job earnings or allowance, help them map out where their money should go.

3. Teach the reality of taxes – Explain that NIL deals aren’t “free money” and that a big chunk goes to the IRS.

4. Encourage smart saving – Open a savings account and set up a percentage-based saving system (like 50% spending, 30% saving, 20% giving).

NIL is Bigger Than the Money

At the end of the day, NIL isn’t just about making money—it’s about learning how to manage it wisely. The athletes who succeed long-term aren’t just talented; they’re financially prepared.

So before the big deals roll in, make sure your athlete has the basics down. A strong financial foundation today can be the difference between NIL money being a stepping stone or a stumbling block. Start small, think big, and help your athlete build habits that will set them up for success—on and off the field.