Investing is a future-sized task, but it is the best way to ensure you get started. When you start making money in college, you give yourself more time to build your assets. As a compounded phenomenon, nothing is too small to accumulate over time. The earlier you invest, the better you’ll also master money management, risk management, and rewards and build on a foundation for your long-term financial success.
1. High-Yield Savings Accounts
A high-yield savings account is a simple and safe choice for students unfamiliar with investing. In contrast to a savings account, a high-yield account offers higher interest rates so that you will earn more from your deposit. Such investments are low-risk, so this kind of investment is perfect for students who need to stash their money away and still see some returns. A high-yield savings account is relatively easy to open, and many banks also provide online account management, which works well for students. You’ll also be able to access your funds quickly if needed, which is a plus for students on a limited budget.
Especially about budget-friendly investment choices, students have the challenge of balancing school with financial objectives. As an overworked professional with few resources, juggling investing and coursework may be stressful. So don’t hesitate to get academic assistance using custom research papers for sale. Outsourcing some schoolwork to a writing service can free up time to learn more about investing and how to make money. It is easier to find a way to balance your study and financial objectives, enabling you to continue on the academic side while also investing wisely for the future.
2. Micro-Investing Apps
Micro-investing apps such as Acorns, Stash, and Robinhood have enabled students to invest for as little as $1. These apps allow you to purchase fractional shares to get a stake in giant firms without spending hundreds of dollars. Micro-investing apps are handy for students because of the freedom, low costs, and different investments they provide. Here are some micro-investing apps you can use that will let students invest with little or no money:
- Acorns: Automatically rounding your purchases to the nearest dollar and investing the leftover change makes it painless to accumulate cash.
- Stash: Offers multiple investment options and allows you to automate your deposits to invest consistently.
- Robinhood: Unlike most brokers, Robinhood does not charge commissions for trades, which is excellent for new users who want to start trading stocks and ETFs cheaply.
- Public: It combines social media with investing, allowing users to share their experiences and seek advice from other investors while holding fractional shares.
Every app has a different offering and pricing, so experiment and choose what works best for you.
3. Certificates of Deposit (CDs)
Certificates of Deposit, also known as CDs, allow students to save money while protecting their capital. When you buy a CD, you commit to keeping your money in the account for some time – from a few months to years. Banks pay a set interest rate generally higher than traditional savings accounts. CDs are risk-free because they’re protected by the FDIC (up to a point), and you can count on them to be safe. But remember that withdrawing funds before the term expires usually comes with a penalty. If you have some savings you won’t need immediately; a CD is a great way to get interested without worrying about market volatility.
4. Exchange-traded funds (ETFs)
ETFs are a great choice if you’re a student keen on the stock market but don’t want to invest in single stocks. ETFs use funds from different investors to purchase a mixture of assets such as stocks or bonds. This diversity provides inherent diversification, reducing the risk of investing in a single stock. ETFs are traded like stocks, meaning you can sell them daily. They’re ideal for students because they are inexpensive and relatively intuitive. Some micro-investing apps and brokerages offer fractional shares of ETFs so you can begin with a tiny sum.
5. Investing in Yourself Through Skill Development
Investments aren’t just about the money – learning something valuable. The money you invest in courses, workshops, or certifications related to your passions will increase your earning potential and career prospects. For instance, an online course in coding, marketing, finance, or anything else can land you internships and jobs, leading to increased earnings in the future. Learning to develop your skills is like investing in high returns. Coursera, Udemy, and LinkedIn Learning provide free or low-cost courses on various topics. You’re setting yourself up for long-term success. In developing your capabilities now
Building Wealth on a Student Budget
If it’s a challenge to invest as a student, don’t worry because you can do it. Begin with safe bets such as high-yield savings accounts and CDs, check out micro-investing apps, and think about ETFs or education to learn how to grow your money and career. You might only get tiny returns, but persistence and time will eventually transform these small investments into huge assets. Even on a small budget, making that investment today puts you financially stable and opens doors for other opportunities.
