College Students Investing

College students are not well known for having a large bank account and money saved away in a retirement fund. In fact most students are living paycheck to paycheck (if they even earn a paycheck). However there are some students that manage to work and save away their money. Many of you would love to take that couple thousand dollars and turn it into 10's of thousands of dollars.....I hate to be Johnny rain cloud but chances are thats not going to happen. Investing in a mutual fund or a stock is a bad idea during college unless you have major stock experience which is very rare. I STRONGLY emphasize this because with stocks there is a real possibility of loosing your money and you can not afford to do that.

If you want to invest in stocks and make some real money in college the best thing you can do is take a class. There are many college courses that teach you these skills as well as several online programs that allow you to use fake money to practice in the stock market but that if you lose the money you do not lose any real money.

The best investment you can make with your money in college, other than an education, is a high interest savings account. Several online banks and credit unions offer higher interest and some even have special programs for college students. I know you will not likely earn more than 1 to 2 percent of your money, especially the way the economy is right now, but your money will be safe and backed by the government.

Even a CD is not a good idea for a college student unless you have more than $10,000 saved up. The reason is because CD's have penalties if you try to pull your money out ahead of time and most of them do not pay much more than a higher interest savings account. However, the savings accounts shouldn't have any penalties for when you can access your money. Now if you have a lot of money saved up then maybe this wouldn't be a bad idea but with the oncoming cost of food, gas, car maintenance, and just going out with your friends you do not want your money tied up.

The best way to invest in college is by getting an education. You will have plenty of time later on to make money but, if you really want to invest and start saving your money then just get a simple high yield savings account to keep your money safe.

Source: http://ezinearticles.com/6405298

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