Qualitatively Pre-Testing a Tailored Financial Literacy Measurement Instrument for Professional Athletes

Abstract

The aim of this study was to qualitatively pre-test a research instrument to assess the financial literacy skills of professional athletes who compete in a team sport environment. Questions were developed based on a review of the current literature and an analysis of qualitative data from twelve structured expert interviews, selected using actor–network theory and purposive sampling. The findings showed how qualitative data can be considered and enumerated to guide the development of 28 validated questions to assess financial literacy within a specific group. This study helps to fill a gap in the literature since there is a paucity of qualitatively mediated research that focuses on specific target groups in the field of financial literacy. This research instrument could be of value to professional athletes, sports club management, players’ associations, educators, researchers, sports agents, and advisors by providing them with a greater understanding of their clients’ financial literacy skills and financial needs.

1. Introduction

The Organization for Economic Co-operation and Development (OECD, 2018) defines financial literacy as a combination of financial awareness, knowledge, skills, behaviours, attitudes, and confidence necessary to make sound financial decisions. In other words, financial literacy encompasses an individual’s financial knowledge, financial self-efficacy (confidence in applying financial knowledge and managing finances), and human capital (financial attitude and motivation) to make sound financial decisions in pursuit of sustainable financial well-being (Potrich et al., 2016; Warmath & Zimmerman, 2019). Despite the significance of financial literacy, global financial literacy levels are generally low (Goyal & Kumar, 2020; Van Rooij et al., 2024). Professional athletes are no exception in this regard (McGraw et al., 2019; Owusu et al., 2023).

1.1. Orientation

William Thomson famously said, “If you can’t measure it, you can’t improve it” (Kuhle, 2016, p. 1335). The same rationale applies to financial literacy. Any endeavour to enhance a target group’s financial literacy requires meaningful assessments of their ability to make effective financial decisions (Remund, 2010). Numerous studies have found that the development of interrogative constructs to measure the financial literacy of specific groups is a significant yet understudied area of research (De Beckker et al., 2019; LeBaron & Kelley, 2021). However, questionnaire questions need to be understandable and of high quality to ensure meaningful results (Collins, 2003).

Moreover, as the current study demonstrates, any initiative to measure the financial literacy skills of a target group should be tailored to their demographics, life stage, prior experience, and financial needs (Huston, 2010; Kaiser & Menkhoff, 2017; LeBaron & Kelley, 2021). This aligns with the fundamental assertion of this study that a combination of questions from various financial literacy content areas should be used to assess the financial literacy of a specific group, taking care that the questions are tailored to that group while still being connected to the core themes of financial knowledge, self-efficacy, financial attitude, and financial behaviour. Importantly financial knowledge alone is not sufficient, and more researchers are placing an emphasis on self-efficacy (Gulati & Singh, 2024; Riaz et al., 2022). Self-efficacy is an individual's belief in their ability to successfully complete a task, shaped by their past experiences and future expectations (Bandura, 1982). Therefore, it is essential to recognise the importance of self-efficacy and the confidence needed to make sound financial decisions, as key components of the broader concept of financial literacy (Lown, 2011; Mindra et al., 2017; Shim et al., 2010).

Professional athletes represent a unique target group because of their distinct financial needs, which are often shaped by careers that can place them in a position of wealth. However, their earning window is limited since most have relatively short playing careers that typically end by their mid-thirties (Carlson et al., 2015). Although athletes are, in general, well remunerated and earn more than the average worker in their age group, the reality is that many make far less than the high salaries often reported in the media (Balliauw & Van Den Spiegel, 2018; Brown et al., 2019). Furthermore, the careers of professional athletes, along with their emotional well-being and financial standing, can be jeopardised (often unexpectedly) by factors such as ageing, deselection, and injury (Knights et al., 2016; Park et al., 2013).

These challenges can be exacerbated by financial mismanagement and poor investment decisions (Moolman, 2022; Van Heerden, 2018). This is highlighted by the bankruptcy cases of former NFL players Terrell Owens and Mark Brunell, who, despite reportedly earning more than USD 80 million and USD 50 million, respectively, during their professional sports careers, were unable to secure long-term financial stability after retiring from professional sport (Brandner & Omondi-Ochieng, 2022). At this stage, some athletes can neither maintain their lifestyle from their accrued earnings nor continue to support themselves without undergoing some form of retraining or making a career change (Brown et al., 2019). Furthermore, transitioning to a new career is often accompanied by a variety of psychological and other challenges (Hong & Fraser, 2021; Richardson & McKenna, 2020). Therefore, professional athletes need to implement sound financial planning and acquire financial literacy skills from an early age to help secure their financial well-being in the long term (Moolman, 2023).

1.2. Research Purpose and Objectives

Limited research exists on a tailored financial literacy measurement instrument that can be used to assess the financial literacy skills of professional athletes and that can guide interventions to improve the financial literacy skills of professional athletes. The following research question was formulated based on the research problem and the motivation for this study: What are the most relevant questions to include in a measurement instrument for assessing the financial literacy skills of professional athletes who compete in a team sport environment? A qualitative pre-test interview approach was adopted to consider the appropriateness of the developed questions to assess the financial literacy skills of professional athletes because asking the right questions is fundamental to good survey research (Buschle et al., 2022).

Actor–network theory (ANT) provided a useful theoretical framework for this study, along with a sampling strategy for identifying interviewees best positioned to answer the research question. The selected “actors” were asked to evaluate the relevance or usefulness of a list of possible questions that could contribute to the development of a financial literacy questionnaire for professional athletes. ANT specifically guided the purposive selection of a representative sample by identifying individuals who could form a network of actors around a professional athlete and who would be able to influence the athlete’s financial decisions (Moolman, 2022). The application of ANT was motivated by research findings suggesting that social networks and information sharing have a positive effect on financial literacy and financial inclusion (Riaz et al., 2022; Shim et al., 2010). The sampling strategy used by Williamson et al. (2020) was applied in the current study to ensure the credibility and trustworthiness of the purposively selected expert interviewees’ responses.

1.3. The Need for Greater Financial Literacy and a Tailored Financial Literacy Measurement Instrument for Professional Athletes

Financial literacy has multiple definitions and is often linked to concepts such as financial knowledge, financial awareness, and financial capability (Goyal & Kumar, 2020). Despite the numerous definitions, many studies highlight that financially literate individuals have financial knowledge, financial self-efficacy, and the right financial attitude to steer their financial behaviour towards the improvement of their financial well-being (Potrich et al., 2016; Warmath & Zimmerman, 2019).

A high level of financial literacy offers numerous benefits and promotes financial sustainability. Financially literate individuals can manage their finances to meet their daily needs, are aware that they need to establish emergency funds for unforeseen events, plan for their children’s education, and save for retirement (Goyal & Kumar, 2020). Better debt management, improved retirement planning, greater stock market participation, increased wealth creation, understanding fiscal reforms, and smarter saving and investment decisions are other important advantages of financial acumen (Lusardi & Messy, 2023; Lusardi & Mitchell, 2014). Financial literacy also improves individuals’ overall well-being because it allows them to feel in control of their day-to-day finances, helps them to achieve their financial goals, and enhances their sense of financial freedom (Goyal & Kumar, 2020).

Despite these advantages, many professional athletes lack personal financial management skills (Brandner & Omondi-Ochieng, 2022; Van Heerden, 2018) and many retired professional athletes are concerned about their finances, resulting in tension in their family environment (Brown et al., 2019). Fortunately, professional athletes can reduce the risk of experiencing financial distress after their retirement from professional sports by taking ownership of their financial planning and by attending workshops to improve their financial literacy from an early age (Moolman, 2023). Rodriguez and McDonald (2013), who conducted a study among athletes in Australia, found that organised sport provides an opportunity to educate players about financial literacy, better health, and leadership skills. Sports clubs and organisations could do more to educate and equip athletes with financial literacy and financial planning skills during their sports careers (Hong & Fraser, 2021; Owusu et al., 2023).

The likelihood that efforts aimed at improving the financial literacy of a specific group will be effective is higher when such efforts are combined with the development of a targeted, relevant financial literacy education programme and content-specific assessment tool (De Beckker et al., 2019; Huston, 2010; LeBaron & Kelley, 2021; Peeters et al., 2018). Richardson and McKenna (2020) note that there is a paucity of literature on the financial realities of professional athletes. Despite the unique and often high-stakes financial pressures experienced by professional athletes, there remains limited research on how to effectively measure their financial literacy or assess their readiness for financial decision-making. This study responds to that gap by qualitatively pre-testing a structured research instrument designed to assess the financial literacy skills of professional athletes competing in a team sport environment.

1.4. Measurement of Financial Literacy

The purpose of this study was to fill the mentioned gap in research by developing a fit-for-purpose instrument to measure the financial literacy skills of professional athletes. To this end, the study primarily focused on verifying central questions that match the financial literacy content areas related to professional athletes (Moolman, 2023), which are illustrated in Figure 1 below. Although these content areas were designed with professional athletes in mind, all of them relate to the fundamental themes of financial knowledge, financial self-efficacy, financial attitude, and financial behaviour.

The financial literacy content areas illustrated in Figure 1 were developed by Moolman (2023) through a qualitative study consisting of semi-structured interviews that focused on the financial literacy needs of athletes competing in a team sport environment. The literature indicates a significant variation in measurement instruments reported on in the literature, largely owing to differing conceptual definitions of financial literacy (Huston, 2010; Santini et al., 2019). Furthermore, Rieger (2020) recommends considering questions from a range of reported studies to develop a more tailored measurement instrument for the assessment of financial literacy.

In this study, questions relating to each of the content areas indicated in the framework illustrated in Figure 1 were drawn from several measurement instruments reported on in the literature (Finke et al., 2017; Louviere et al., 2016; Lusardi & Mitchell, 2014; OECD, 2018; Potrich et al., 2016; Swart, 2016). In some cases, the questions were subtly reworded, and currencies were adjusted to the local unit for the benefit of the interviewees, who were tasked with verifying the relevance of the proposed questions. In instances where suitable questions were not readily available in the literature to address the content areas shown in Figure 1, new questions were developed based on the findings of Moolman (2023). This approach is supported by Knoll and Houts (2012), who make a case for the development of new questions to assess financial literacy. The recommendations of Huston (2010) were considered in crafting the summative questions for measuring the financial literacy of professional athletes. The above-mentioned questions (included in Appendix A) provided the foundation for the forward-looking design of the financial literacy measurement instrument proposed in this study. These questions were then qualitatively pre-tested with 12 expert interviewees which allowed for a dialogue between the researchers and the interviewee to gain greater insights into how and why questionnaire questions may be appropriate and to avoid misunderstandings in the question design (Buschle et al., 2022; Collins, 2003). The results could help guide the development of a tailored educational initiative for professional athletes, serving as an alternative to a “one-size-fits-all” approach, as suggested by De Beckker et al. (2019) and Peeters et al. (2018).

2. Materials and Methods

This deductive qualitative study was conducted with the aim of formulating and verifying questions for a questionnaire that can be used to assess the financial literacy of professional athletes. Previous research and the financial literacy content areas for professional athletes (Moolman, 2023) shown in Figure 1 above underpinned the development of an initial list of 29 questions. These questions were then assessed for relevance in the context of this study. Careful attention was paid to the wording and ordering of the questions. To avoid leading participants towards specific responses, the questions were kept as short as possible, simply phrased, and neutral. In addition, the questions were purposefully prepared and constructed to be clear, and the interview schedule contained an overview to explain the aim of the research study (Saunders et al., 2023).

2.1. Research Setting–Structured Interviews to Assess the Initial List of Questions

The results of twelve structured interviews conducted in South Africa to evaluate the relevance of the questions in the proposed questionnaire specifically developed for professional athletes competing in a team sports environment (Appendix A) were analysed in this study by means of a research methodology and sample size similar to those used for assessing the validity of a financial literacy measurement instrument for young adults in the study by Happ et al. (2018). The structured interview schedule included 29 questions for the interviewees to assess and three response options: “very relevant”, “relevant”, and “not relevant”. This method created a rating of the questions according to their discriminatory power, which was then analysed to develop a final questionnaire for assessing the financial literacy of professional athletes.

During the face-to-face interviews, the researchers prompted the interviewees to write or orally explain their assessment of each question. Interviewees were encouraged to think out loud and to articulate their reasoning, because the researchers focused on understanding the interviewees’ responses to enhance the draft questions through qualitative pre-test interviews (Buschle et al., 2022). The researchers also asked questions to gain greater insight and to add to the richness of the data collection. The researchers collected and safeguarded all written responses and made field notes of explanations or comments provided by the interviewees for further analysis and reporting.

2.2. Research Participants and Sampling Method

Guided by ANT, Figure 2 illustrates a potential network of actors who may influence the financial decisions of a professional athlete. It also shows how these actors were grouped into five homogeneous categories for this study. Software applications or online tools, which are non-human “actors” that could provide information or advice to a professional athlete, were not included in the interviewee sample.

ANT presupposes relationships and interconnectedness that are difficult to depict in a two-dimensional figure. Therefore, the lines and composition in Figure 2 should be viewed with caution. The research sample was selected to represent the actors depicted in Figure 2. Twelve expert interviewees were deemed an appropriate sample size for obtaining sufficient insights and gathering diverse perspectives (Englander, 2019). The sample size was also considered appropriate since purposive sampling and the expertise of participants enriched the research findings. No new themes emerged, suggesting that data saturation had been reached due to the information power of the participants (Braun & Clarke, 2021). As shown in

Table 1. The anonymised demographics of the individual interviewees for developing the research questions.

Interviewee Number	Description of the Actor in the Network Around a Professional Athlete	Group (as per Figure 2)	More than Two Years’ Experience
1	Certified financial planner® and independent broker	1	Yes
2	Chartered accountant (CA) (SA), associate member of CIMA (ACMA, CGMA) and tax advisor/practitioner	1	Yes
3	Sports agent and qualified lawyer (with experience in local and international dealings and himself a former professional rugby player) who represents professional rugby players	1	Yes
4	Sports psychologist and career development consultant experienced in working with local and international sports teams	1	Yes
5	Chief executive officer at a leading cricket franchise in South Africa	2	Yes
6	Financial manager at a leading rugby union/franchise in South Africa	2	Yes
7	Experienced academic and CA (SA) with experience in the field of financial literacy	3	Yes
8	Experienced academic and CA (SA) with experience in the field of financial literacy	3	Yes
9	Experienced academic and CA (SA) with experience in the field of financial literacy	3	Yes
10	Experienced academic and CA (SA) with experience in the field of financial literacy	3	Yes
11	Former professional cricket player with experience in playing professionally in South Africa, overseas and at international level, together with experience as an executive committee member of a players’ association	4	Yes
12	Current professional rugby player with experience in playing professionally for a leading franchise in South Africa and overseas	5	Yes

below, the interviewees were selected from what the researchers considered to be five homogeneous groups in the network. Groups 1 to 5 are distinguished by different colours in Figure 2 above. These groups were formed based on the common roles of the actors or interviewees in each group. Rugby and cricket players were chosen as the unit of analysis for this study since rugby and cricket are two of the most popular and highly paid sports in South Africa.

Critical case purposive sampling was used because there was a clear reason for selecting the interviewees (Saunders et al., 2023). Guided by ANT, quota sampling was used to ensure that each of the identified actor groups was represented, enhancing the credibility of the results (Monette et al., 2011). The interviewees were selected based on Morse’s definition of a good interviewee, namely, an individual who has the knowledge, experience, time, ability to reflect, and articulation skills necessary to address the research question (Morse, 1994).

2.3. Data Collection

The questions were first piloted with two interviewees from two of the distinct groups defined above. The research findings from the pilot interviews were also included because these interviewees noted that the questions were well structured and understandable, and the format of the interviews did not change because of the pilot interviews. The final sample of interviewees represented the actors identified in the network (Figure 1) and aligned with the recommendation by Ricci et al. (2019) that a population of interest be consulted for the development of a questionnaire. Following the analysis of the data, the sample size was reassessed and deemed adequate based on the recurrence of common responses from interviewees (Wiltshire & Stevinson, 2018), with the understanding that “it is not the number of cases that matters”, but rather the insights shared by the interviewees (Emmel, 2013, p. 154). In addition, the sample was deemed adequate since the goal of qualitative research is not to determine “what is general about the population” but to explore “what is general about a phenomenon” (Englander, 2019, p. 12). During the data collection process, situational and relational ethical issues such as the interviewees’ right to anonymity, voluntary participation, confidentiality, privacy, informed consent, and protection from discomfort, harm, and victimisation were prioritised (Tracy, 2010). The researchers also obtained ethical approval for this study from their affiliated university.

2.4. Data Analysis

The interview data were reduced and amplified through enumeration to facilitate clearer interpretation and the extraction of significance (Sandelowski et al., 2009). Sandelowski (2001) challenges the notion that qualitative researchers cannot or do not use counting in their interpretation of research findings. Sandelowski notes that counting is an important part of the analytic process, and that data can be scored to enable researchers to assess the prevalence or absence of events, experiences, or themes. In this study, enumerating and counting the number of “very relevant”, “relevant”, and “not relevant” responses provided a strong basis for identifying suitable questions for inclusion in a questionnaire aimed at measuring the financial literacy of professional athletes. Another benefit of enumerating data from structured interviews is that it yields numeric data to facilitate pattern recognition (McGreary et al., 2020; Sandelowski et al., 2009), which can be reported in tables and graphs (Alshenqeeti, 2014). In addition, the rich written and oral responses interviewees provided in explaining their relevance ratings for each question were used to refine the questionnaire for the assessment of the financial literacy of professional athletes. A theoretical thematic analysis approach as suggested by Braun and Clarke (2006) was applied to analyse the open-ended responses and underlying justifications provided by interviews regarding the appropriateness of specific questions. This deductive approach was suitable since predefined themes from the literature guided the initial list of potential questions and categories of data (Flick, 2018). Although this approach may not always yield nuanced and rich descriptions, it enables a more focused and detailed analysis of specific aspects of the data such as to validate constructs (Braun & Clarke, 2006). This allowed the researcher to evaluate the relevance and clarity of the expert opinions from the structured interviews to validate the 28 questions for the targeted financial literacy instrument.

2.5. Reporting Style

Figure 3 depicts the enumerated research findings that were used to determine the relevance of each of the proposed questions for evaluating professional athletes’ financial literacy.

The enumerated findings presented in Figure 3 are discussed in greater detail below. Narrative findings that support the credibility and trustworthiness of this study are also provided below. In certain cases, selected verbatim comments from participants are provided to clarify or substantiate the questions included in the final questionnaire.

3. Research Findings

Appendix A presents the questions that were assessed for the qualitative verification of a measurement instrument that can be used to assess the financial literacy skills of professional athletes. It was found that 28 of the 29 questions were relevant for inclusion in a financial literacy measurement instrument. Only question 17 should be excluded because it was deemed overly complex.

3.1. Questions Related to Category I: Contracts and Documents (Questions 1–5)

Most participants indicated that questions 1–5 were relevant or very relevant. Most interviewees also stressed that professional athletes should carefully consider the contracts they sign and should have basic legal acumen. These findings align with the findings of Moolman and Shuttleworth (2023).

Question 1 related to considerations before signing a player contract to play sport professionally.

All interviewees agreed that the question was relevant or very relevant. Interviewee 2 remarked the following: “Deciding for which team to play and considering all the quantitative and qualitative factors attached to the decision is essential because it directly impacts your ability to succeed as a professional athlete and the amount of money that you will earn in the short term and for the rest of your professional sports career”.

Question 2 focused on when it would be financially advantageous for a professional rugby or cricket player to sign a player contract abroad. All interviewees regarded this as a critical decision.

However, Interviewee 2 noted, “It is important for players to understand why this is important and therefore the ‘why’ can be built into the question”. This insight informed the rewording of the proposed question (noted in Appendix A).

Question 3, which dealt with understanding sponsorship agreements, was deemed a relevant or very relevant question by all participants. Professional athletes should thoroughly review and understand their playing contracts and sponsorship agreements before committing to them. As Interviewee 3 noted, these contracts may contain biassed or restrictive terms. Moreover, Interviewees 7, 9, and 12 mentioned that sponsorship deals could be very lucrative, which makes the question “very relevant”.

Question 4 addressed the preservation and safeguarding of legal and accounting records. One participant thought the question was irrelevant, whereas the majority thought it was either relevant or very relevant.

The question was regarded as very relevant by Interviewee 8, who explained, “Individuals need to safeguard documents to protect themselves as the consumer and to have supporting documents for accounting and tax purposes”.

Interviewee 1 explained that he regarded the question as irrelevant because the documents can be easily requested or retrieved if stored electronically. Therefore, the question and corresponding answer were revised to include the digital store of information.

Question 5 dealt with legal acumen, and ten of the twelve participants regarded it as a very relevant question. Interviewees 3 and 4 remarked that many professional athletes do not understand all the legal terminology, clauses, and “fine print” in the contracts they sign and reiterated the need for them to consult a legal advisor before signing a contract. This also confirms the importance for professional athletes to, at times, surround themselves with a network of suitable advisors to guide their financial decisions.

3.2. Questions Related to Category II: Planning and Money Management (Questions 6–18)

Questions 6–18 related to planning and money management skills. The capacity to recognise the value of financial objectives was assessed in question 6. All participants thought that this was an important issue to include in a questionnaire for assessing professional athletes’ financial literacy skills.

Interviewee 2 explained, “It is fundamental for anyone’s financial planning that they understand and take ownership of their own financial goals even if they are assisted by a professional financial advisor.”

This links with the assertions of numerous authors, such as Potrich et al. (2016), that the ability to set sound short-, medium-, and long-term financial goals is a fundamental financial literacy skill.

Question 7 focused on how well a participant understands the concept of the time value of money. This question was deemed relevant or very relevant by the vast majority of interviewees. Interviewee 7 regarded it as a good question since it incorporated financial knowledge about saving, investment, and the time value of money.

Question 8 addressed the need for professional athletes to have basic financial knowledge of currency management. All interviewees regarded the question as relevant or very relevant. Interviewees 5 and 10 indicated that the question is very relevant because many South African professional rugby and cricket players aspire to sign more lucrative contracts with overseas clubs or franchises at some point in their careers.

Question 9 dealt with an individual’s attitude and motivation to keep a monthly budget. Nine of the twelve interviewees regarded the question as very relevant, and the other one deemed it relevant. This shows that budgeting acumen is a vital component of financial literacy for professional athletes. As Interviewee 11 explained, budgeting is important because it is necessary for meeting financial goals in the interest of sustainable financial well-being.

Question 10 related to financial control. Most interviewees regarded the question as relevant. Interviewee 2 viewed the question as very relevant and recognised that it linked with the theme of financial behaviour. This interviewee stated that financial knowledge is irrelevant if it does not equate to sound financial behaviour. This aligns with the literature, which suggests that financial knowledge, financial self-efficacy, and a sound financial attitude are essential for promoting positive financial behaviour (OECD, 2018; Warmath & Zimmerman, 2019).

Interviewee 7 stated, “This is a very relevant question because in addition to addressing ‘financial control’, it assesses if an individual understands and considers the opportunity cost of their financial decisions, which is an essential financial literacy skill”.

Question 11 addressed the need for professional athletes to start saving at an early age. This question was viewed as very relevant by seven of the twelve interviewees. According to Interviewees 4 and 6, too many young professional athletes fail to see the value of saving from the start of their careers, which is a serious problem.

Question 12 was also about saving and required a cumulative interest calculation. It could be considered an application-type question (Huston, 2010). One interviewee thought the question was not relevant; in contrast, the other participants thought it was relevant or very relevant. Interviewee 1 stressed the importance of grasping compound interest because individuals need to appreciate that it allows their investments to grow exponentially over time.

Interviewee 2 noted, “An understanding of compound interest is a fundamental financial literacy skill, and a greater understanding of this concept should improve an individual’s financial decision-making”.

Question 13 was linked with the content area of investments and addressed an individual’s knowledge about investing in a diversified share portfolio. The question was judged to be relevant by most participants. According to Interviewee 8, professional athletes should establish a diversified investment portfolio beyond their pension fund because they will be earning a lot of money, but only for a few years. Therefore, it is essential that they achieve optimal investment returns that will benefit them when they reach normal retirement age. This aligns with one of the core competencies noted in the framework developed by IOSCO and OECD (2019).

Question 14 was also related to the topic of investing, specifically the risk–reward relationship involved in making investment decisions. All interviewees thought that this question was relevant or very relevant.

Question 15 was about an individual’s financial knowledge in relation to considering the risks associated with a specific investment instrument, in this case, a unit trust. All interviewees, except Interviewee 12, viewed this question as relevant or very relevant. Interviewee 12 strongly believed that financial advisors should manage this aspect because it is within their mandate.

Question 16 focused on whether a professional athlete should have the acumen (or skill) needed to evaluate suitable investments. Only Interviewee 4 thought the question was not relevant, while the rest of the interviewees thought it was relevant or very relevant. Interviewee 12, in line with their response to question 15, reiterated that it is the responsibility of financial advisors to make the most appropriate decisions on behalf of their clients (in this case, professional athletes).

Although it is important to recognise when financial advice could be beneficial (Gerrans & Hershey, 2017), the literature recommends that individuals take responsibility for the financial decisions that affect the achievement of their long-term financial goals (Moolman, 2023). For this reason, financial literacy is an essential life skill, and any shortcomings in this area cannot be remedied simply by receiving professional financial guidance (Lusardi & Mitchell, 2014). As a result, both questions 15 and 16 were deemed appropriate to include in the instrument.

Question 17 was designed to evaluate individuals’ fundamental mathematical skills. Half of the participants regarded the question as not relevant, and the other half regarded it as relevant. None of the interviewees viewed it as very relevant. The qualitative pre-test interview approach allowed the researchers to freely discuss the interviewees’ responses with them, to gain deeper insights and to help identify problematic questions (Buschle et al., 2022). Interviewee 11 remarked that the question was overly complex and that only a few professional athletes are financially or mathematically oriented; therefore it should not be expected of them to have expertise in this area. Interviewee 1 also indicated that the question was not relevant since it was more of a riddle than a financially linked question. The question was not included in the final questionnaire due to the strong views of the interviewees who thought that the question was not relevant.

Question 18 addressed an individual’s ability to comprehend the probability or likelihood of an event occurring (in this case, the likelihood of a sports injury). It also related to basic mathematical skills. Unlike question 17, this question was deemed relevant or very relevant by all participants.

3.3. Questions Related to Category III: Financial Obligations (Questions 19–23)

The following series of questions focused on the category, “financial obligations”, which included content areas such as credit and banking, and taxation.

Question 19 was linked to credit and banking and tested an individual’s ability to recognise a bank overdraft as a high-cost financing option. All interviewees thought that the question was relevant or very relevant. This question tied in with the content areas of financial control and budgeting as part of recognising that one must remain within a budget and avoid overspending.

Interviewee 2 noted, “Professional athletes’ income often varies, depending on performance bonuses, and they often incur expenses in anticipation of their bonuses without realising the excessive cost of unsecured debt”.

Question 20 was also linked to credit and banking, specifically the interest payable on a bond. Eight of the twelve interviewees thought that the question was very relevant. According to Interviewees 2 and 4, many professional athletes prioritise the purchase of a primary residence and some of them acquire investment properties, hence an understanding of interest is critical for them.

Interviewee 3 elaborated, “Young players often purchase very expensive properties and do not understand that they need to repay that bond for the next 20 years. They are clearly taking unnecessary financial risk because they could get seriously injured at any time, with little chance of earning the same salaries outside sport”.

However, Interviewee 10 recommended that the question be simplified and framed using the term home loan or mortgage instead of a bond, which has various meanings in different contexts. The question was revised.

Questions 21–23 related to taxation. Question 21 was designed to assess interviewees’ knowledge about investments with tax incentives. More than half the interviewees regarded the question as relevant. A few interviewees commended the question for blending the content areas of investments and taxation.

Question 22 focused on a professional athlete’s ability to recognise when he or she needs to consult a tax specialist. Nine of the twelve interviewees viewed the question as very relevant.

Interviewee 8 remarked, “There are specific tax regulations that apply to professional athletes and many of them have a range of investments, so they need to have basic tax knowledge and know when to consult with a tax or accounting specialist”.

Interviewee 2 noted, “Professional athletes need to be aware that the responsibility to be tax compliant remains with the individual and not with his or her advisor. This has been confirmed in many court cases and recently in high-profile cases featuring the Spanish tax authority and renowned soccer players”.

Question 23 dealt with a recent change in South African tax legislation concerning the taxation of foreign income. Several interviewees pointed out that many South African professional rugby and cricket players aspire to earn income abroad at some point during their careers. All interviewees considered the question relevant or very relevant. Interviewees 2 and 7 noted that conducting tax planning and understanding one’s potential and future tax obligations are necessary for sound financial planning and the achievement of financial goals. This aligns with the literature, which indicates that the effect of taxation on an individual’s finances, and investment decisions is a fundamental content area of financial literacy (Bornman & Ramutumbu, 2019; IOSCO & OECD, 2019).

3.4. Questions Related to Category IV: Risk Management (Questions 24–26)

The need for risk management motivated the inclusion of these questions in the measurement instrument. Content areas covered here included insurance, estate planning, and the avoidance of unethical behaviour.

Question 24 related to the content area of insurance and focused on evaluating an individual’s ability to select a suitably qualified and independent insurance broker. All participants indicated that the question was valid.

Interviewee 7 stated, “Not all brokers will have their client’s [professional athlete’s] best interest at heart, and careful discernment is required when selecting the most appropriate broker”.

A few interviewees noted that professional athletes need to be cautious when selecting any advisors, not just insurance brokers, to guide their financial decisions. This aspect was also addressed by question 29.

Question 25 was linked to estate planning. Ten of the twelve interviewees deemed the question very relevant. Interviewee 1 explained that having basic knowledge of estate planning and having a will are important for everyone because “death is as certain as paying taxes”.

Interviewee 3 noted, “Many male professional athletes are the primary breadwinner, but probably only one in ten players will be concerned about their financial and estate planning. The majority of players just want to play sport and enjoy the good life and they wait too long before they start thinking about financial planning”.

Question 26 focused on the necessity for professional athletes to avoid unethical behaviour. The majority of interviewees viewed this question as very relevant. A few participants indicated that this was a significant content area because unethical behaviour could bring a premature end to a professional athlete’s career.

3.5. Questions Related to Category V: Preparing for a Life After Sport (Questions 27–28)

The questions in this category focused on the skills that professional athletes need to plan for a career transition after their retirement from professional sports. “Education” and “transitioning to another career” were the content areas in this category.

Question 27 was designed to determine whether professional athletes should seek advice from a career development planner or sports psychologist to identify alternative careers they could pursue after their sporting careers end. All participants regarded the question as valid. Nine of the twelve interviewees thought the question was very relevant. Interviewees 7, 8, and 11 highlighted that professional athletes should obtain an education and plan for alternative careers since their sports careers may be unexpectedly cut short due to injury or non-selection.

Interviewee 4 stated, “The biggest problem for professional athletes is that they are too focused on the present and fail to plan or prepare for a career and a life after sport”.

Question 28 was related to the content area of transitioning to another career. The question centred on how important it is for a professional athlete to do “shadow work” to prepare for a post-sports career. Most interviewees regarded the question as relevant or very relevant. Interviewees 2 and 12 remarked that professional athletes have enough time to pursue an education and to develop vocational skills while competing in professional sports, which would give them valuable insight into possible transitional careers.

Interviewee 10 stated, “Planning for a life after sport has made me a more balanced individual and improved my performances on the sports field”.

Since the original stated, “Which one of the following statements best describes you?”, Interviewee 9 felt that the question incorrectly focused on the respondent’s personal preferences instead of assessing their factual knowledge or expertise. Therefore, this question has been revised.

The last question related to knowing when to gain financially oriented professional advice from an appropriate network of advisors.

3.6. Question Related to Category VI: Gaining Professional Advice (Question 29)

Question 29 was designed to evaluate a professional athlete’s approach to seeking guidance from certified and knowledgeable advisors for financial decisions. Ten of the twelve interviewees rated the question as very relevant. According to Interviewee 11, professional athletes should focus on appointing advisors who are reputable, suitably qualified, and experts in their field to guide their financial decisions, adding that too many professional athletes receive financial advice from sports agents, family, and friends who often lack the necessary expertise.

Interviewee 2 stated, “For many areas of financial literacy, professional athletes only need basic financial literacy skills because it will take many years for them to gain expert knowledge. The key for them is to recognise that they need expert financial advice, have the ability to choose a reputable advisor, and understand the advice they receive to make an informed and meticulous decision”.

This aligns with the recommendation of the OECD (2018) that individuals should choose independent and professional financial advisors who understand their financial circumstances, financial goals, retirement needs, and risk appetite and who speak with them in understandable language (Richards & Safari, 2021).

Nonetheless, the question was revised based on the views of Interviewee 9 that the original question, much like Question 28, aimed to assess the personal preferences of the respondent instead of their factual knowledge and understanding of the question and topic.

The section below contextualises the research findings and provides a direction for future research.

4. Discussion

This study provided a set of validated and refined questions for measuring the financial literacy skills required by professional athletes in pursuit of sustainable financial well-being. In addition, interviewees’ narrative responses added to the richness of the findings, offering deeper insight into how professional athletes can manage their finances.

4.1. Practical Implications

This study laid the groundwork for comparative studies across different countries and athlete demographics with a view to enhancing tailored education initiatives intended to improve financial literacy in specific contexts. It also helped address the need for more qualitative studies on financial literacy in the context of a specific target group (Goyal & Kumar, 2020). In addition, this study illustrated how ANT can be applied to assist with the selection of participants for the purpose of developing a questionnaire related to financial literacy. This study could benefit professional athletes, sports club management, players’ associations, educators, researchers, and financial advisors by providing a deeper understanding the financial literacy skills and financial needs of professional athletes.

4.2. Limitations and Recommendations for Future Research

This study had some limitations. Although measurements of financial literacy can help predict financial behaviours, Huston (2010) contends that they do not necessarily indicate that individuals will act in a way that researchers, policymakers, or educators consider optimal. Factors such as impulsivity, behavioural/cognitive bias, unusual preferences, self-control issues, and external influences from the community, institutions, and the economy all play a role in financial decisions that may seem unwise to an unbiased and knowledgeable observer (Huston, 2010; Louviere et al., 2016). It is difficult to account for these factors in a financial literacy measurement instrument. Furthermore, the focus of this study was limited to male professional athletes who compete in a team sport environment, specifically rugby and cricket.

Future research could explore financial literacy in a similar context by investigating the financial literacy skill set and related measures for professional athletes in individual sports, such as tennis and golf, since most of the questions in the developed instrument may also apply to them. Furthermore, the research findings may be different in the context of female team sports, where financial rewards are generally lower. There is an opportunity to conduct a similar study with a larger sample to improve the generalisability of the findings, or to apply a theoretical framework other than ANT to guide the sample selection, which may yield alternative insights. Additionally, conducting a comparable study outside South Africa could improve the transferability of the findings to professional athletes in different cultural, economic, or sporting contexts. The research instrument could also be compared with other validated instruments to evaluate its alignment with established measures, and to position it within the broader financial literacy measurement literature. Moreover, future studies could explore the inclusion of subjective measures alongside objective assessments, while integrating questions based on behavioural finance theories could further enhance the measurement instrument. The measurement instrument could also be further validated through a quantitative study that involves improving and refining the questions by means of an exploratory analysis, like the approach adopted by Potrich et al. (2016).

5. Conclusions

The aim of this study was to develop a questionnaire by reviewing the current literature and conducting qualitative pre-test interviews. The results of this study, which were enumerated to analyse the strength and weight of interviewee responses, along with the narrative interpretation of the interviewee responses, indicated that 28 of the 29 planned questions were suitable for inclusion in a questionnaire designed to assess the financial literacy skills of professional athletes. Five questions (namely Questions 2, 4, 20, 28, and 29) were revised to provide greater clarity after prompting interviewees to elaborate on their though processes when evaluating the questions. This study filled a gap in the literature by proposing a measurement instrument linked to the conceptual notion of financial literacy and relevant financial literacy questions for professional athletes, thereby offering a unique contextual contribution. Professional athletes may find this study valuable in helping to reduce their risk for financial distress following the conclusion of their sporting careers. This study may also be of interest to sport’s governing bodies, the leadership of professional sport clubs, higher education institutions with prominent sports teams, training providers, players’ associations, sports agents, legal advisors, financial planners, accountants, tax experts, and other financial advisors seeking to better understand the current financial literacy skills of professional athletes and the competencies required to support their financial well-being.