What is one of the most important things a college student can be doing towards his financial future? Hope to get that graduation gift of a couple thousand dollars? Maybe Huge Corporation, Inc. is looking to make you its CEO? The more promising and realistic direction to go is investing. The great thing is that investing for college students can begin while still in the throes of academia. So what investing should today's college student be considering? Let's look at many of the viable options.
Before seriously considering what is open to today's college student … there are a couple of things to keep in mind. First, become educated about money. Too often many students (and mature adults) do not have an accurate concept about money. Not only should you be saving even now for current expenses, but how to apply sound stewardship principles for future concerns. This means being to live within your means now. If at all possible to not get stuck with huge loans while in school. Secondly, realize what money can do for you … make it work for you rather then you for it.
OK so what investing for college students exist? What possible ways of seeing your money bring a return can you go for?
Short-term such as money-market funds, passbook savings accounts and CD's (Certificates of Deposit) fit in this category. Being as these are covered by the government there is a certain safety net. They can pay quick returns but usually at a low interest rate. In fact as low as 3 percent. Money markets are short term security funds like in treasury bills.
Another form of investing for college students would be bonds, a form of lending money to someone with the express view of receiving your value back with interest over a set period of time. Bonds, compared to short-term, will pay a much higher interest rate, but usually pays off after a longer period of time.Your grandparents may have purchased you a US Savings bond when you were little … this is the most common form of bonds. These are government issued. There are also corporate bonds that pay at a higher rate of interest.
Investing in corporations, or stocks, through purchasing part ownership in a company is another form of investing. These typically out perform most other forms of investments as predicated in history. As with an investment there is risk … in this case of the corporation doing poorly thus having an impact on the stock value. Although if done correctly, and with expert assistance, the owner of stock can do quite well when a company sees high financial gains.
Other forms of investments are in real estate and commodities. These also have ups and downs to consider.
This brief synopsis of most common investment ideas is to give college students ideas to consider and weigh before making a decision. Investing for college students should be done with guidance from a financial expert and not made hastily. The options are many and the returns may be profitable.