Four Essential Bank Accounts for the Modern College Athlete

College is the perfect time to begin your wealth-building journey

College athletes face unique financial challenges, balancing academics, athletic commitments,  personal expenses, and maximizing NIL income opportunities. Managing finances effectively is crucial for success both on and off the field and helps establish lifelong healthy financial habits. 

To begin, one of the key benefits of having multiple bank accounts is that it enables athletes to separate their day to day spending money from savings and investing. Most financial institutions have apps and tools that simplify the process of setting a budget and managing money across multiple accounts. These apps make it easier to track spending, automate investing, and help avoid dipping into hard-earned savings for impulse purchases or non-essential spending. Choosing a primary banking relationship with an institution that has a personal banker (or financial advisor) that can help you set-up and manage all of these core accounts is important. 

A sample income allocation for the modern college athlete.

1. Personal Checking Account

Starting with the basics, a checking account is the cornerstone of responsibly managing finances. This account serves as the central hub for daily spending, allowing athletes to make payments, withdraw cash, and manage spending with ease. A personal checking account is an excellent tool for college athletes to receive their cost-of-living stipends and Alston awards. Day-to-day expenses should be withdrawn from this account. Look for checking accounts with no monthly fees or minimum balance requirements. 

2. Personal Savings Accounts

A savings account serves as a secure haven for an athlete’s hard-earned money, providing a place to grow funds over time. Methods to save money each year could include transferring a dedicated percentage of cost of living stipends and/or a portion of Alston Award payments to a savings account. Look for accounts with high interest rates, no monthly fees, and quality customer service. 

3. Business Checking Account

A business checking account enables a college athlete to segregate their personal finances from their NIL and other earnings. Utilize a business checking account to receive and manage NIL income, charitable contributions, and track NIL (and other business related expenses) conveniently.

4. Investment Account

Investing offers college athletes a powerful tool to grow their wealth and secure their financial future. College athletes should invest a healthy percentage of their NIL earnings and other income. An investment account allows college athletes to trade stocks, bonds, mutual funds, and ETFs. A dedicated investments account leverages the power of compound interest and time by starting investments early, maximizing long-term wealth accumulation. It also enables athletes to plan for future goals, such as a down payment on a house, retirement, or starting a business, by setting aside funds and making consistent contributions.

By strategically utilizing multiple bank accounts, college athletes can effectively manage their finances and lay the foundation for a secure financial future. Seeking guidance from personal bankers,  financial advisors, and  university resources can provide valuable support and tailored advice, empowering college athletes to make informed financial decisions and achieve their long-term financial goals.

Jackson Hartz is a fourth-year Economics major at the University of California, Los Angeles (UCLA) . Hartz is also the author of “Building Your Financial Future: A Practical Guide for Young Adults” which was featured as a #1 hot new release in Amazon Personal Money Management Books.  He has written for the California Business Journal and is the founder of the Financial Literacy Group at UCLA.