5 Great Investments to Make While in College

investments to make while in college

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  • College is a new and exciting stage of life.

    You move away from home, make new friends, and get to worry about getting to class on time.

    This transition to adulthood presents different kinds of investment opportunities. Here are great investments to make while in college.

    High-Yield Savings Account or CDs

    One of the ways college students can boost their savings is to open a high-yield savings account. High-yield saving accounts pay interest rates on your deposits at rates that are far above those available through traditional savings or checking accounts.

    The advantage of saving your money in a CD account is that you can make a withdrawal at any time. CDs pay a fixed interest rate in exchange when you deposit a certain amount of money for a specified time.

    A CD account is one of the safest accounts for college students to stash their college fees because it guarantees a fixed pay-out without losing the principal amount.

    Invest in Life Insurance

    College life offers students the illusion of infallibility. Because you are young, you assume nothing terrible will happen to you. Nothing could be further from the truth. It would help if you cautioned yourself from the unforeseen events that could occur while in college and avoided jeopardizing your future.

    That is where a hybrid life insurance policy comes in as an excellent investment option for college students. Whole life insurance policies may seem out of reach to the average college student. Hybrid life insurance policies are designed to cater to various situations and circumstances. These policies offer a great investment opportunity to college students.

    Invest A Little Each Month

    Most college students shy away from investing because they are afraid of brokerage fees. This is because they have not considered investing with a commission-free broker.

    Investing with a commission-free broker means that you can invest moderate sums of money each month and, the fees do not consume your capital. This means you can make $10 or $20 investments a month and start reaping benefits in no time.

    Investing motivates you to follow the market trends. It also allows you to start thinking as an investor.

    This will drive you to conduct research and constantly analyze your investment portfolio. You can acquire experience that will be beneficial to your investment journey even though you invest moderate sums.

    Turn To A Free Or Low-Cost Broker

    Today, the market is full of all kinds of free or low-cost brokers. These brokers help college students with their investments. Many low-cost brokerage companies compete to offer investors various services ranging from research to educational tools.

    Some of these firms offer free services and ETF trades and are highly recommended for their robust client services and overall investor friendliness. Low-cost brokers provide college students with a great entry point to the investment world.

    There are also several free to trade platforms and offer various opportunities, such as options and crypto. One such platform is Robinhood which has a mobile app that allows you to trade on the go. Robinhood Gold offers Morningstar research for $5 a month.

    Turn to an Investing App

    The advancement in technology has provided college students with a variety of investment options. Investments apps have proven to be a student’s best and cheapest companion in their investment journey. Apps have allowed students to become investors in multiple sectors, including EFTs, money markets, or crypto.

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    Some apps like Acorns allow you to link your credit or debit card to your investment account. The app then rounds off your purchases to the nearest dollar. They invest the difference in one of a few select EFTs.

    Most of these apps usually cost about $5 to get started and have a monthly running cost of $1, making them affordable for college students who want to start investing.

    The key takeaway point for any college student looking to invest is to start today. You can start investing today. You do not need huge amounts of money to start investing. All you need is the interest to learn and the courage to put up a few dollars to start securing your future.

    Image credit: investments to make while in college by twenty20.com

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