Topic: Financial Literacy among Professional American athletes and organizationsLiterature ReviewIntroduction and Background • Financial literacy refers to the possession of the knowledge and skill set that permits a person to make effective and informed decisions will all of their financial resources (Stolper & Walter, 2017). • The gap exists in financial literacy and education that contributes to financial problems of the professional athletes.
• Prior research shows that 78% of the NFL athletes go broke or struggle financially within just 2 years after retiring (Torre, 2009). • However, after retiring for just 5 years, 60% of NBA athletes struggle financially (Torre, 2009). Theoretical Foundation • Grounded theory model of financial literacy (Firli, 2017). • Models of planned behavior and financial literacy (Kennedy, 2013). • The theory of pivotal moments (Giorgi, 2016).Review of Literature topics with a key theme: • Many pro athletes go bankrupt regardless of the total wealth they accumulate during their careers since very few of them have knowledge of financial literacy (Calcagno & Monticone, 2015).
• Retired players are highly vulnerable and are important targets for money management programs to ensure effective and successful retirement transitions (Stolper & Walter, 2017). • The professional athletes go broke because of many reasons including incompetent or inadequate financial planning advice, divorce, supporting a large group of dependents. • Other reasons include lack of familiarity with how quickly a vocation can come to an end and lack of preparation for the second career (Calcagno & Monticone, 2015). • However, the main professional athletes’ financial problems emanating from lack of sound financial education and advice (Stolper & Walter, 2017). Summary • Background: There is need to offer financial education or literacy programs to professional athletes • Problem: lack of financial literacy leads to financial problems among pro athletes. • Financial literacy programs: The way to eliminate the financial problems among pro athletes is through financial education(Calcagno & Monticone, 2015). Problem StatementIt is not known if there are relationships between the professional athletes’ lack of skills to effectively management the personal finances and the level of financial problems or challenges among the retired professional athletes (Calcagno & Monticone, 2015).Research QuestionsR1: How important is high-quality financial education or advice for positive financial outcomes compared to no advice?R2: Would compulsory financial education strategies be provided to professional athletes to help in alleviating financial problems upon retirement and improve financial well-being? SampleThe study will be conducted in the U.
S. and the target population is retired, professional athletes. A sample of 300 participants will be interviewed to collect results from a first-person perspective on the level of financial literacy as well as the other reasons they face financial problems. Describe Phenomena (Qualitative)Understanding the nature and impact of a financial literacy among Professional American athletes and organizations on financial problems and challenges and reasons why most of them go broke after their retirement (Wiles, 2012). Methodology & DesignThe research uses a qualitative approach with a descriptive phenomenological psychological design in understanding and describing what the professional athletes regard as the vital aspects of the pivotal lived-experience that they believe contributes to the financial problems after they retire (Giorgi, 2016). Purpose StatementThe aim of the qualitative explanatory phenomenological research is to establish if the financial literacy or financial education influences the financial well-being of the professional athletes (Giorgi, 2016).
Data Collection ApproachIn order to answer the research questions, qualitative descriptive phenomenological study used online survey or interview to determine how the pivotal lived-experience with financial challenges unfolds for the professional athletes during the athlete journey that they believed contributed to going broke (Giorgi, 2016). The study focused on the participants’ experiences perceived as contributing to their financial problems from the first-person point-of-view.Data Analysis ApproachThe adopted methodology will provide in-depth information about the financial literacy among the professional athletes and their experience with financial bankruptcy (Giorgi, 2016). The collected data depended on the memories of the participants during the study and their experience during their professional athlete journey. The data analysis technique adopted by the study will be Giorgi’s five-step descriptive phenomenological psychological method. It will analyze the crucial aspects including the pivotal lived-experiences of the athletes to determine why 78% of the professional players go broke 2 years after retirement (Torre, 2009). ReferencesCalcagno, R. and Monticone, C.
(2015). ‘Financial literacy and the demand for financial advice’, Journal of Banking and Finance, 50, pp. 363–380. doi: 10.1016/j.jbankfin.2014.03.
013.Firli, A. (2017). ‘Factors that Influence Financial Literacy: A Conceptual Framework’, in IOP Conference Series: Materials Science and Engineering. doi: 10.
1088/1757-899X/180/1/012254.Giorgi, A. (2016). ‘The descriptive phenomenological psychological method’, Journal of Phenomenological Psychology, pp. 3–12. doi: 10.1163/156916212X632934.Kennedy, B.
P. (2013). ‘The theory of planned behavior and financial literacy: A predictive model for credit card debt?’, ProQuest Dissertations and Theses, p. 84. doi: Paper 480.Stolper, O. A.
, and Walter, A. (2017). ‘Financial literacy, financial advice, and financial behavior’, Journal of Business Economics, 87(5), pp. 581–643. doi: 10.
1007/s11573-017-0853-9.Torre, P. S.
(2009). ‘How (and Why) Athletes Go Broke.’, Sports Illustrated, 110(12), p. 90. Available at: http://search.
ebscohost.com/login.aspx?direct=true&db=f5h&AN=36982372&site=ehost-live.Wiles, R. (2012). Pro athletes often fumble the financial ball.