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Robinhood has announced what it considers the first-of-its-kind financial education program for student-athletes at West Virginia University (WVU), with the goal of combating post-graduate athlete bankruptcy and financial hardship.
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Through the partnership, WVU will be the first Division I school to offer financial education classes to all student-athletes beginning in the 2022-23 school year, a Robinhood spokesperson told GOBankingRates.
Dan Gallagher, director of legal, compliance and corporate affairs at Robinhood, told GOBankingRates: “Robinhood believes that financial education should be easily accessible, for everyone. Professional athletes fresh out of high school and college are becoming overnight millionaires, but too many of them lack the financial literacy resources to handle this changing financial situation. We are thrilled to launch this partnership with WVU, and look forward to helping WVU student-athletes learn about financial matters.
Robinhood said it believes it’s essential that players learn the basics of financial literacy, as many professional athletes file for bankruptcy in just a few years, with nearly 16% of NFL players filing for bankruptcy in just a few years. the 12 years following their retirement; 60% of NBA players “go bankrupt within five years of leaving the league”; and 78% of former NFL players are experiencing financial hardship two years after retirement, a spokesperson said.
This is the first semester course entirely dedicated to financial literacy for student-athletes, which will be required for all WVU athletes with scholarships and optional for those who are not. Additionally, elements of this course are integrated into the WVU freshman seminar so that all students on campus will receive a financial education in 2022-23.
This will be a 4-year partnership, with the Center for Financial Literacy and Education at WVU John Chambers College of Business and Economics.
When asked if the company plans to launch more programs, Chloe Barz, director of external affairs and community at Robinhood, told GOBankingRates that “we are still in the early stages of conversations to expand this. We are exploring the resources needed to do this and plan to expand this program to other college campuses this year.
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West Virginia Senator Joe Manchin released a statement sent to GOBankingrates in support of the partnership. “The launch of this inaugural educational program marks a significant milestone in the advancement of student athletics with influential guest lectures that will instill lessons that will last a lifetime. I thank Robinhood and WVU for providing this unique opportunity for athletes to gain the skills and knowledge necessary for a successful post-graduate career – and I hope to see this exciting program expand to other West Virginia colleges and universities in the future,” Manchin said. .
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