We know that our gear consists mostly of clothing and accessories except for our wands (which is used to cast the spells) and deck (which is used to store the spells we want to use) but what is the athame for? What is its purpose on Wizard101? Is it our tool for collecting objects such as plants?
Just like the jewelry and rings it doesn't have any hidden use, it only gives you increased stats, they should be listed when you put your mouse on the athame.
According to wikipedia, a real life athame is used for rituals. Its primary use is "to channel and direct psychic energy". In that sense, I'd assume that an athame on Wizard101 is for amplifying a wizard's magical powers like health and mana.
In actual magic practice, athames are double-bladed steel knives that usually have a black handle. They are especially constructed to direct and channel energy; for example, to cast a protective circle or direct magical energy into an object. Traditionally, the athame is only used for this purpose, however, some practitioners also put them to practical use: they may use their athame to cut herbs, strings, or cords for certain potions and spells.
There are four magical "tools" that witches and sorcerers use, including the athame. The other three are the wand, the chalice (a special cup), and the pentacle (a circle, into which is drawn or carved some other sacred symbol).
Alia Misthaven