When Chris Paul was drafted into the NBA in 2005 as the No. 4 pick by the New Orleans Hornets, he faced a pivotal financial decision that would shape his understanding of money management. At just 19 years old and a college student at Wake Forest University, Paul had only $151 in his bank account. Despite this, his parents played a crucial role in ensuring he started his professional career on a solid financial footing.
Less Money To Lose
In a recent interview with Forbes, Paul recounted how he was offered an upfront sum of $100,000 upon his entry into the league. However, his parents intervened, suggesting he accept only $25,000 instead.
“My financial adviser who we hired, they said they would send me $100,000 and my parents said, ‘No that’s too much,’” Paul told Forbes.
During a 2023 appearance on “The Shop,” Paul also spoke about this experience. He shared how, eager to see what such an amount looked like, he went to a local bank to print out a statement showing $25,151. “We young, we don’t know. We ain’t never had no money like this,” Paul reflected. Without any financial education accompanying the windfall, he quickly spent his earnings, splurging on a BMW 750 and shopping sprees at Hanes Mall in Winston-Salem.
It seems his parents knew Paul would blow through his money fast, and by limiting the payment amount to $25,000 instead of $100,000, they spared him from blowing it all right away.
Chris Paul’s Financial Success
This early lesson in financial restraint and the subsequent importance of financial literacy became a cornerstone of Paul’s off-court mission. Recognizing the lack of financial education among young athletes, Paul seems to have since dedicated himself to promoting financial literacy.
Paul, who at 39 is playing for the Golden State Warriors, has career NBA salary earnings totaling an astounding $389.9 million, according to Spotrac.
In April, Paul partnered with the Black-woman-owned fintech bank Goalsetter, the Oakland Fund for Public Innovation, and Nike to introduce financial literacy programs to 1,400 middle school students in Oakland, California. Through this initiative, students received savings accounts via Goalsetter’s app and $40 in Nike stock to kickstart their investment journey.
“Empowering our youth with the knowledge and tools to secure a financially sound future is not just a commitment, it’s a necessity,” Paul said in a press release. “We owe it to the next generation to lay the groundwork for financial success, ensuring they’re equipped to make informed decisions that will shape their lives and communities for the better. It’s about more than just understanding money; it’s about building a foundation of wisdom that will serve them for a lifetime.”
Paul is also an equity partner in Slutty Vegan and holds stakes in WatchBox, an online luxury watch marketplace that counts Michael Jordan among its investors, as well as The Soccer Tournament (TST), a high-stakes men’s and women’s league with a $1 million winner-takes-all prize, according to Forbes. And, Paul is an investor in the streaming platform PlayersTV and plans to create content for the channel through his production company, Ohh Dip!!!
