A Jump In Class: Navigating New Wealth
The American Bankruptcy Institute published an article in 2018 highlighting some of the bankruptcy rates facing athletes post-retirement. They stated, “According to a working paper from the National Bureau of Economic Research, 15.7% of NFL players filed for bankruptcy within twelve years of retiring. A Sports Illustrated article, reported that 78% of NFL players and 60% of NBA players face serious financial hardships after retirement.” Though it may be shocking, these statistics highlight a very common issue related to the acquisition of new wealth.
What is a “jump in class”?
Athletes navigating new wealth is a perfect example of a jump in class, sometimes referred to as upward mobility. A jump in class is when a person moves up the class ladder to another level of privilege. This can be accomplished in many ways, for example access to higher education, securing a well-paying job, or signing a contract as a new professional athlete. Social mobility highlights the same notion of movement from one class to a rung above.
An opportunity to make, keep, and pass on wealth can easily be fumbled by mismanagement and lack of financial literacy. The podcast Kneading Dough, hosted by Maverick Carter, set out to have these types of conversations with athletes whose lives quickly changed after signing a contract gave them access to more money than ever before. Mr. Carter spent 4 seasons talking to athletes on how they learn, navigate, and manage large sums of money. This is particularly important if someone comes from lesser means.
Navigating New Privilege
More often than not, minorities have been on the other side of financial privilege; mindsets must shift quickly when you are no longer looking in, but having broken through, the proverbial glass wall or ceiling. In my work as a therapist, I have helped clients navigate their new privilege, taking the time to dissect, understand, and make peace with the changes in their financial lives and what it means to them personally. Money impacts almost all facets of our lives and ignoring that impact can be detrimental. It can be uncomfortable to stand in privilege you worked for and earned knowing it is so different from the experiences of your family of origin. Doing so requires insight into your own feelings around family, money, opportunity, and how you ground yourself in who you are.
Traditionally, therapists are not specifically trained in discussing money and its impacts on our wellness. However, navigating these feelings is a complex and necessary process. Financial Therapy, a specialization of how mental health and personal finance interact, has been leading the charge in the importance of how money impacts our wellbeing. It requires the potential reframing of feelings, behaviors, and ideas about money that often stem from our upbringing.
In order to continue closing wealth gaps, shedding negative money narratives is needed to manage privilege and access to money in a way that ensures you not only have enough, but can potentially pass it on.
