Shaquille O'Neal, the former NBA player and successful entrepreneur, knows a thing or two about the importance of financial literacy. Having built a net worth of $400 million, Shaq is no stranger to the ups and downs of managing wealth. Now, he's using his experience to educate other NBA players, particularly Anthony Davis, who recently signed a lucrative contract extension with the Los Angeles Lakers.

In a recent appearance on Rex Chapman's "Owned" podcast, Shaq offered some valuable advice to Davis. Despite the excitement surrounding Davis' new contract, Shaq was quick to remind him about the financial realities that come with such a big payday.

As Shaq himself learned the hard way, taxes can take a big chunk out of a paycheck.

Shaq shared his own experience of splurging his first paycheck and then receiving the residual amount after taxes. Coming from the Orlando Magic to the Lakers, Shaq was unaware of the differences in tax laws between states. Florida, where he was previously based, doesn't have a state income tax, unlike California. Consequently, when Shaq received his massive paycheck from the Lakers, it was significantly reduced due to taxes.

This cautionary tale serves as a valuable lesson for other athletes, including Davis. Shaq emphasized the importance of financial literacy and understanding concepts like athlete taxes, commonly known as the "jock tax.

" This tax requires players on an active roster to pay additional taxes when playing in away games. Shaq himself had to learn the hard way when he had to pay jock tax even when he was injured. Given Davis' own history of injuries, this is an important lesson to keep in mind.

While Shaq's criticism of Davis, along with Charles Barkley, has been seen by some as harsh, it's important to recognize that it comes from a place of wanting to motivate Davis to improve. Shaq sees himself as a mentor to young players and hopes that his advice will help them avoid financial pitfalls.

Despite Davis' recent redemption on the court, Shaq remains stringent in his expectations and will continue to offer his take on Davis until he meets those standards.

In conclusion, financial literacy is a vital skill for anyone, including professional athletes. Shaq's own experiences and lessons have enabled him to become a savvy investor and entrepreneur. By sharing his wisdom with Davis and other NBA players, Shaq hopes to prepare them for the financial challenges that come with success. So, while Shaq may be tough on Davis, it ultimately comes from a place of care and guidance, aiming to help Davis secure a bright financial future.