NIL Credit Education Curriculum
With the recent rise in Name, Image, and Likeness (NIL) deals, student-athletes are increasingly earning money while still in school. This influx of income brings financial opportunities, but it also requires a greater understanding of personal finance, particularly the importance of credit. Building and maintaining good credit is essential for long-term financial health, as it affects everything from securing a mortgage to obtaining a car loan or even landing a job. The NIL Credit Education curriculum aims to equip student-athletes with the knowledge and tools to navigate credit responsibly, teaching them how to build credit, avoid debt, and use credit as a financial tool for future success.
Module 1: Introduction to Credit for NIL Athletes
Learning Objectives:
- Understand what credit is and how it works
- Learn why credit is important for athletes, especially those with NIL income
- Explore the difference between credit scores and credit reports
Topics Covered:
What is Credit? Credit is the ability to borrow money or access goods and services with the promise to pay later. Athletes will learn the basics of credit, including different types of credit like credit cards, loans, and lines of credit.
Why is Credit Important? Good credit opens doors to financial opportunities, such as purchasing a home, getting a car loan, or even renting an apartment. This module will emphasize how building strong credit is crucial for NIL athletes, not only during their athletic careers but long after.
Credit Scores vs. Credit Reports: Athletes will understand the difference between a credit score (a numerical value representing creditworthiness) and a credit report (a detailed history of an individual’s credit activity). They’ll also learn what factors impact credit scores, such as payment history, credit utilization, and length of credit history.
Activities:
- Credit Exploration: Athletes will discuss what they currently know about credit and how they’ve seen it impact the financial decisions of others.
- Credit Score Simulation: Students will be given hypothetical credit situations to analyze how different behaviors affect their credit scores.
Module 2: Building Credit as an NIL Athlete
Learning Objectives:
- Learn strategies for building and maintaining good credit
- Understand how to choose the right credit card or loan
- Explore the role of credit history in building financial stability
Topics Covered:
How to Build Credit: Building credit can be challenging, especially for young adults with limited credit history. Athletes will learn various strategies for building credit, such as using a secured credit card, becoming an authorized user on someone else’s account, and taking out small personal loans.
Choosing the Right Credit Card: With many credit card offers targeting student-athletes, it’s important to choose wisely. This module will teach athletes how to select the right credit card by looking at factors like interest rates, fees, credit limits, and rewards programs.
The Role of Credit History: A key aspect of building good credit is establishing a long, positive credit history. Athletes will explore how maintaining a healthy credit history can improve their credit score over time and increase their access to better loan and credit opportunities.
Activities:
- Credit Card Comparison Exercise: Athletes will compare different credit card offers based on interest rates, fees, and rewards, selecting the best option for their needs.
- Authorized User Workshop: Athletes will explore the pros and cons of becoming an authorized user on a family member’s credit card to build credit.
Module 3: Understanding Credit Utilization and Debt Management
Learning Objectives:
- Learn how credit utilization impacts credit scores
- Understand the risks of high debt levels and how to manage debt responsibly
- Develop strategies to avoid falling into the credit trap
Topics Covered:
Credit Utilization Ratio: Credit utilization is the percentage of available credit that you’re using at any given time. This module will teach athletes why keeping credit utilization low (below 30%) is important for maintaining a good credit score and how to calculate it.
Managing Debt: Credit cards and loans can quickly lead to overwhelming debt if not managed properly. Athletes will learn strategies for avoiding excessive debt, such as paying off balances in full each month, setting spending limits, and keeping track of all credit-related expenses.
Avoiding Credit Pitfalls: Athletes will explore common credit pitfalls, such as taking on too much debt, missing payments, or maxing out credit cards. They’ll also learn how to recover from credit mistakes and avoid long-term damage to their financial standing.
Activities:
- Credit Utilization Calculation: Athletes will calculate their own (or hypothetical) credit utilization ratio and explore how adjusting it can improve their credit score.
- Debt Management Workshop: Athletes will create a plan to manage potential debt, including strategies for paying off balances, avoiding late fees, and monitoring credit reports.
Module 4: Protecting Your Credit and Identity
Learning Objectives:
- Learn how to protect credit from identity theft and fraud
- Understand how to monitor credit reports for errors
- Explore the steps to take if credit or identity is compromised
Topics Covered:
Identity Theft and Credit Fraud: NIL athletes may be particularly vulnerable to identity theft and fraud, given their public profiles. This module will teach athletes how to protect their credit by safeguarding personal information, using secure online practices, and regularly monitoring their credit reports.
Monitoring Credit Reports: Athletes will learn how to access free annual credit reports from the major credit bureaus (Equifax, Experian, and TransUnion) and understand what to look for when reviewing their credit history. They’ll also explore the benefits of using credit monitoring services to alert them to potential fraud.
Steps to Take if Your Identity is Stolen: If an athlete’s identity is compromised, it’s critical to act quickly to limit the damage. This module will outline the steps athletes need to take to freeze credit accounts, report fraud to the credit bureaus, and work with creditors to resolve issues.
Activities:
- Credit Report Review: Athletes will review a sample credit report, identifying any errors or signs of fraud, and discuss how they would address the issues.
- Identity Theft Prevention Plan: Athletes will develop a personal plan for protecting their credit and identity, including online security measures and credit monitoring.
Module 5: Making Smart Credit Decisions
Learning Objectives:
- Learn how to make informed credit decisions
- Understand the long-term impact of credit on financial health
- Explore how to balance credit use with income and spending
Topics Covered:
Making Informed Credit Choices: Athletes will explore the importance of making smart credit decisions, such as only borrowing what they can afford to repay and avoiding high-interest loans. They’ll also discuss how to evaluate credit offers and determine when it’s appropriate to take on new debt.
Credit’s Long-Term Impact: Good credit is not just about the present; it’s about setting up long-term financial health. This module will teach athletes how their current credit behaviors will impact their ability to secure future loans, buy a house, or even open a business.
Balancing Credit and Income: While NIL income can create new opportunities, athletes need to balance their spending and credit use with their earnings. They’ll learn how to manage their finances effectively, ensuring they don’t rely too heavily on credit and can maintain financial independence.
Activities:
- Credit Decision-Making Simulation: Athletes will be given different financial scenarios and asked to make informed credit decisions based on interest rates, repayment terms, and their personal financial goals.
- Budget and Credit Integration: Athletes will develop a plan to integrate their credit use with their NIL income, ensuring that they stay within budget and avoid overspending.
Module 6: Planning for the Future with Credit
Learning Objectives:
- Understand how credit affects long-term financial goals
- Learn how to use credit as a financial tool for future investments
- Develop strategies for maintaining good credit throughout life
Topics Covered:
Credit and Major Life Events: Athletes will explore how credit plays a role in major life events, such as buying a home, starting a business, or financing a car. They’ll learn how maintaining good credit can open doors to better financial opportunities and reduce borrowing costs over time.
Using Credit as a Financial Tool: Credit can be a valuable tool when used wisely. Athletes will explore how to leverage good credit for future investments, such as obtaining low-interest loans for business ventures or purchasing real estate.
Maintaining Good Credit: Credit is not a one-time concern; it requires ongoing attention. Athletes will learn strategies for maintaining good credit throughout their lives, including paying bills on time, monitoring credit reports regularly, and keeping debt under control.
Activities:
- Credit and Life Planning Workshop: Athletes will create a financial plan that outlines how they will use credit to achieve their future financial goals, such as buying a home or starting a business.
- Credit Maintenance Checklist: Athletes will develop a checklist of habits and strategies to maintain good credit throughout their lives.
Conclusion:
The NIL Credit Education curriculum provides student-athletes with the knowledge and skills to manage their credit responsibly. By understanding how credit works, building strong credit habits, and protecting their financial identity, athletes can set themselves up for long-term financial success. Whether they go pro or transition into other careers, mastering credit is an essential part of achieving financial independence and stability.