By Ray Birch
WILLISTON, Vt.—Understanding student-athletes have unique needs when it comes to financial education, one university is partnering with a local credit union to make financial education part of the school’s curriculum.
As CUToday.info reported earlier, $1.3-billion New England Federal Credit Union and the University of Vermont announced that in November, financial education was included in the curriculum for incoming UVM student-athletes. The Financial Wellness Workshop, newly designed by NEFCU and delivered by the credit union’s financial experts, is an integral part of the student-athlete development course, the college said.
“The UVM athletic program is committed to helping students well beyond their team sport and is preparing them with financial skills, as well as helping them understand job offers, which will benefit them throughout their life,” explained Alicia Hawks, the general manager of the University of Vermont’s Patrick Gymnasium.
Hawk said student-athletes, with their commitment to their sports and to their classes, often don’t have time to dedicate to any other outside programs, such as voluntary financial education sessions, which the credit union has conducted at the university over the last three years.
“We want to make sure our student-athletes are well rounded when they graduate,” said Hawks, noting the athletes at UVM tend to perform academically at levels higher than the average student. “But they need financial education so they can be better prepared for life events when they graduate. Making financial education part of the curriculum makes sure they get the financial education they need.”
Strong Feedback, But One Issue
Hawks said the university has received excellent feedback from athletes about the financial training sessions NEFCU has been offering, but noticed an attendance issue
“We had conducted surveys at the end of our seminars and 100% of the students found the seminars beneficial,” said Hawks. “But we also noticed that attendance had been falling, likely due to our athletes’ commitment to their sports. So, it seemed a no-brainer to make this as part of the curriculum.”
The new 50-minute classes this semester include 25 students each.
“The difference now is that we know all of our student-athletes are getting the financial education they need,” said Loren Dow, University of Vermont associate director of academic services. “Hopefully this will set them, up for success after their college life.”
Focus on Two Groups
NEFCU Chief Marketing Officer Cindy Morgan told CUToday.info the courses will focus on two different groups of student-athletes—freshmen and sophomores, and juniors and seniors.
“We have geared our educational programs to their specific financial needs,” she said. “Students’ financial needs change as their situation changes. Graduating from college and comparing your job options and benefits requires a much different skill set than those younger students starting college and managing their money on their own for the first time. Both skill sets lay a strong foundation for financial skills from which they can continue to build upon.”
The program for freshmen and sophomores reviews core strategies to financial wellness, including budgeting, reducing debt and savings.
Alicia Hawks
“The average graduate has over $30,000 in debt when they finish college,” said Morgan. “Understanding the best way to handle that debt and the impact on building credit and your future is important. Along with managing money skills, we work with students to learn how to set and attain a financial goal, and bring an awareness to needs vs. wants, which helps develop mature decision-making.”
Real Costs
The course’s teachers, supplied by the credit union, talk about the importance of planning and saving for goals vs. purchasing with credit.
“We show them the real cost of credit card debt over time,” Morgan explained. “Saving for large purchases, an emergency fund, vacation, car, house, etc. is the key to financial freedom. Lack of money management skills resulting in debt is a well-known source of stress these days.”
Morgan explained the financial education needs shift sharply as students head toward graduation.
“Gaining a healthy perspective on the job offer process adds to their overall confidence in seeking the right opportunity,” said Morgan. “Our Playing to Win: Strategies for Achieving Financial Success course prepares students for a strong career start by understanding a job offer and all the considerations involved—from benefits to relocation to negotiations. We believe that how you start your career has little to do with where you end up and everything to do with your money. It all begins with a job offer.”
The Total Picture
Morgan said the course helps students understand, among other things, what’s involved in a total compensation package, “of which 30% are employer benefits, so this is really important.”
Lauren said making financial education part of the curriculum is in no way aimed at addressing concerns about how many professional athletes end up managing their money poorly.
“This is all about making sure they have the time to dedicate to financial education so they leave UVM very well rounded individuals,” said Dow. “They have a lot of demands on their times playing sports, and may not be able to be part of the seminars and workshops that are offered outside of normal class hours. We believe if we offer this education as part of our curriculum, our student-athletes will take advantage of it, and will put their learnings into practice.”
Editor’s note: Cindy Morgan recently retired from NEFCU.