The concept of name, image, and likeness has changed the way that college athletes earn and manage their money. However, even as NIL continues to evolve, there are certain legal requirements, like paying taxes, that college athletes must meet. Not only that, but there are many ways that college athletes can maximize their NIL earnings so they don't shortchange themselves. These tips can help college athletes meet the legal requirements for their NIL earnings and spend and manage their money wisely. 

Save/Invest

Athletes should look into saving or investing a majority of their NIL earnings. By saving or investing this money, it is still available to the athlete, but their hard-earned cash will not be wasted or lost. Since college athletes will earn their NIL money throughout their entire college career, the athlete may put some money back, through either saving or investing, so they have a foundation for the “real-world” after their college career has ended.

Budget the money you choose to spend

If the athlete chooses to put a little bit of money earned through NIL aside to spend, that money should be budgeted. It is important to not spend money on something unnecessary. It may also be helpful to have this money available for “surprise” expenses. A budget is a very helpful tool to have to understand how much the athlete is able to spend out of the money they set aside for that purpose. Apps like Mint, Wally, and Personal Capital are great budget tools for college-aged individuals to use to budget their money. 

Related: 5 Tips for Budgeting as a College Athlete

Talk to a financial planner 

Talking to a financial planner about saving, investing, and paying taxes is a good idea when receiving NIL money. A financial planner will be able to walk the athlete through their various options, along with ensuring that all tax requirements are being met for this money. They are also available to answer any other questions that the athlete may have regarding the NIL earnings received. 

Related: 6 Ways to Manage Your Money as a Student Athlete

Choose your agent wisely

If an athlete chooses to partner with an agent for NIL deals, the athlete should choose one that is reliable and trustworthy. An agent may be responsible for setting up NIL deals, and the athlete will want to ensure that the NIL deal that they are undertaking meets their own financial requirements and conditions. Agents can be useful to an athlete to help the athlete ensure that they are receiving fair market value, especially for NIL deals, based on their athletic abilities and performance. There are multiple online directories of agents that are available to college athletes. 

By using these tips, athletes have the ability to ensure that their NIL deals meet financial requirements, along with being able to spend the money they earn wisely. NIL has changed the landscape of earnings of college athletes, however, these athletes are relatively young overall. Because of their age, it is important that they have mentors, such as financial advisors and agents, who are trustworthy and reliable to guide them in the best path forward to maximize their NIL earnings. 

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* Originally published on August 8, 2022, by Caleb Myers