Fornite’s Summer Skirmish and Young Gamers Newfound Wealth

On Monday September 3, 2018, Epic Game’s Fortnite Summer Skirmish concluded with $1,500,000 worth of winnings distributed to 100 participants. The top winner, known by his alias Morgausse, took home $250,000 at just 19 years old. As I watched the conclusion of the tournament, I smiled at the look of awe on the young man’s face. But one statement repeated by the sportscasters left me feeling troubled; they all said that Morgausse had just won “a life changing amount of money.”
For many people, especially the young, $250,000 does indeed seem like a life changing amount of money and I concede that a sum of that size can make a huge impact on the future of a 19 year old. However, too easily the money can be spent as quickly as it was earned.
I’m sure some readers may be reading this and thinking, ‘What do you know about this?’. Well, just 2 years ago when I was 19, I was in a similar position to Morgausse. I had been investing in cryptocurrencies and working on a startup for over a year and I managed to make a sizable sum due to a mixture of smart plays, great timing, and luck.
At first, I didn’t know what to do with my new found wealth. I was eager to drop out of college, buy a fancy new car, and take an expensive vacation. However, I was lucky. I had grown up with a wealth adviser, my dad, who had been sharing financial wisdom with me for years. He urged me to save my birthday money each year and to put aside money I earned during my summers as a lifeguard. So when I found myself flush with funds, I heeded his advice, cashed out some of my earnings in preparation for tax season and made minimal changes to my lifestyle. And thank god I did.
Many young people who come into money aren’t as lucky as I am. The younger you are, the less likely you understand the world of finances and tax. Someone like Morgausse might be aware how much taxes will cost him. I sure as hell didn’t. In the United States today, he’ll probably be lucky if only 1/3 of the $250,000 goes to paying taxes. I’m no accountant, but depending on federal and state laws it could be even more.
Now don’t get me wrong, I love the fact that that young people like Morgausse have the opportunity to take home large paychecks playing games professionally. It is AMAZING. I just don’t think there is enough emphasis on making sure these elite young gamers know how to manage their winnings. Just a couple years ago, we were all shaking our heads in disbelief when we heard stories of pro-basketball players going from $20 million a year to working at Walmart. This era of professional gaming is no different, and many successful gamers are even younger and less financially sophisticated than those professional athletes.
So, if you end up winning money in a professional gaming tournament, think about putting aside a portion of your earnings for taxes, investing, even socking some away for retirement. Be prepared for the worst; you could be a “one hit wonder” or only play professionally for a short period of time. Use your earnings wisely to help jump start your financial life. The money you pro-gamers can make while still so young is bad ass, but it will be infinitely cooler if you can keep it.
