Should College Students Invest?

by Investing School on December 26, 2011

With frat parties, finals, and finding a job all on their minds, one of the last things college students think about is investing for the future. While stress levels can get high and schedules can get busy, it is never too soon for anyone to start investing. Having minimal finances and resources doesn’t mean students should take their financial future lightly, though.

If a college student wants to start diving into the stock market, patience is the best virtue. In movies like Wall Street, the lead characters usually shoot right up to the top of the ladder without paying their dues. Unless you have a lot of money to throw around, which is probably a bad assumption, it’s going to take a long time to see results.

If you are willing to wait a couple of years and are willing to risk the money, go ahead and put it into some government bonds. These are the most steady investments and will guarantee you some yields when you decide to cash in. If you want to invest in a new company’s IPO, you may find more risk. Startups are created every day, but also fail daily.

Use your 20’s to start developing talents that will help you land the job you want so you can earn more later on in life. Unlike what your professors may teach you, most of the things you learn in college do not really matter in the professional world. While writing a research paper can teach you the importance of good grammar and critical thinking, your job will probably consist of different tasks. Learn computer programs, networking, and communication skills by conducting research and educating yourself.

It’s important to have a reliable and trusty vehicle so you can get around in a secure and efficient manner. Driving around the old hand-me-down gas guzzler that was used to deliver pizzas is not going to be a sustainable option for too much longer. If you have a job, it is a good idea to start financing a brand new vehicle. You can pay monthly payments and build up your credit score at the same time.

If you are still renting an apartment and think you are a grown up, think again. The biggest purchase you can make is a house. It gives you property to own and allows you to take on more responsibility. When/if you want to start a family, a house is a very important part of creating stability.

Investing is much more than just watching the stock market and keeping track of the NASDAQ. Personal finance can help you start your life of and prepare you for when you actually have the funds to invest for your retirement.

This is a guest post from Jenna Smith, a resident and student in the heart of the Midwest, St. Louis. Upon graduation she hopes to travel the world writing about her travels. Someday Jenna hopes to be part of a worldwide publication or start her own platform for unique writers like herself.

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