While the USC Trojans’ quest for the Final Four ended on Monday night with a loss to UConn, JuJu Watkins delivered an outstanding performance, tallying 29 points in the game and solidifying her status as the all-time leading freshman scorer. This remarkable achievement caps off a season where Watkins made waves by setting a USC record for single-game scoring with an impressive 51-point display against Stanford, in addition to being honored as the Pac-12 Freshman of the Year.

During the Elite 8 game, Watkins etched her name in the record books by surpassing Tina Hutchinson’s 40-year-old scoring record with a pivotal three-point shot in the second quarter. By the game’s conclusion, Watkins had amassed a freshman year total of 920 points, comfortably exceeding Hutchinson’s previous record of 898 points. In the tournament alone, Watkins showcased her scoring prowess by tallying 110 points, falling just one point short of matching Tamika Catchings’ 111 tournament points for Tennessee in 1998.

NIL Income And Financial Literacy

Watkins’ exceptional skills on the court have not only propelled her to athletic success but also garnered significant financial recognition. With a valuation of $555,000 by On3, she has secured endorsement and sponsorship deals with renowned companies such as AT&T, Nike, Mielle, SpringHill, Wells Fargo, Ritz, Celsius, and Dove.

Her latest partnership with NerdWallet, a company dedicated to enhancing financial literacy for consumers and small businesses, is particularly noteworthy. This collaboration comes at a crucial time, as recent changes in rules allow college athletes to profit from their Name, Image, and Likeness (NIL). Many athletes, including Watkins, are experiencing newfound wealth without adequate experience in managing finances. Given that financial literacy among college students tends to be relatively low, initiatives like NerdWallet’s partnership with Watkins play a vital role in empowering athletes to make informed financial decisions as they navigate their newfound opportunities.

Watkins explained, “By partnering with NerdWallet, I’m gaining valuable knowledge about financial literacy and setting an example for fellow student-athletes or any individuals making an income. Together, we’re changing the narrative and empowering others to take control of their financial futures and invest in themselves.”

Watkins has opted to implement a budgeting strategy with the assistance of NerdWallet, which advocates the 50/30/20 rule: allocating 50% of income for needs, encompassing debt minimums, allocating 30% for wants, and dedicating 20% to savings and debt repayment beyond minimums. Additionally, five percent of Watkins’ total marketing earnings are allocated to equity, with a portion of her earnings earmarked for supporting charitable foundations.

Under the representation of Klutch Sports Group, which boasts a roster of prominent NBA players, Watkins made history as the first woman to sign with the group during her high school junior year. From the outset, Watkins has been steadfast in her commitment to leveraging her star power and income to uplift her hometown community of Watts in Los Angeles. Coming from a lineage of Watts activists, she views herself as a role model for girls and young women in her community. Responsible financial management serves as one of the avenues through which she endeavors to effect positive change.

Watkins said of her NerdWallet deal, “I’m grateful to NerdWallet for providing financial guidance as a part of the smartest NIL deal because it’s more than just securing my present; it’s about setting a foundation for financial success. With NerdWallet’s expertise, I feel empowered to make informed decisions about my finances, ensuring I can sustain myself that extends far beyond the game.”

NIL Income And Taxes

Colleen Bee, a business professor and Faculty Athletics Representative at Oregon State University, emphasized the importance of considering taxes on Name, Image, and Likeness (NIL) and Alston award income. Alston awards enable universities to provide student-athletes with up to nearly $6,000 per year for personal and school expenses. Bee, who instructs athletes on how to navigate the complexities of NIL, highlights the significance of understanding tax implications associated with these sources of income. By educating student-athletes on tax responsibilities related to their earnings, Bee aims to equip them with the knowledge needed to make informed financial decisions as they capitalize on opportunities in collegiate athletics.

“I think it is important for college athletes to seek some type of trusted and reliable assistance in managing their NIL income. Student-athletes need to consider that NIL income (and Alston awards) are taxable which is typically not something that they have had to consider previously with scholarships or cost of attendance because it is considered financial aid which is not taxable. Not only are NIL and Alson income taxable but typically taxes are NOT withheld or deducted from these income sources. That means that student-athletes are responsible for calculating, reporting, and paying taxes.

“Trusted and reliable assistance related to income tax is important. For example, answering basic questions before even getting to actually filing a tax return… Do I need to file a tax return? If yes, can student-athletes file as a dependent of a parent(s) or do they have to file their own tax return?”

At Oregon State University, the Athletics department collaborated with the College of Business to offer student-athletes free tax assistance through the VITA program (Volunteer Income Tax Assistance). Colleen Bee, an advocate for athlete financial education, highlighted that VITA volunteers organized drop-in tax nights specifically for Oregon State athletes. During these sessions, athletes received guidance on tax filing requirements, assistance in gathering necessary information, and even had the option to complete their taxes on-site with the support of volunteers. Furthermore, VITA volunteers provided follow-up meetings, both virtually and in-person, to ensure athletes received ongoing support.

In addition to managing their NIL income, college athletes transitioning to professional careers require guidance in planning their financial futures. Klutch Sports Group, known for representing top collegiate athletes, offers pre-draft workshops on financial literacy to help athletes navigate the transition into the professional realm. Klutch also facilitates partnerships with financial institutions, such as the recent collaboration with Robinhood, to educate clients on investment strategies and financial planning.

As the popularity of NCAA women’s basketball continues to rise, more female athletes are expected to increase their NIL income, necessitating comprehensive financial guidance. JuJu Watkins’ public commitment to financial responsibility serves as a compelling example of developing financial literacy and prioritizing a secure financial future.