Investment Tips for College Students

As a college student you might be more interested in how you are going to make the money you have last until the end of the week than you are in thinking about investing while you still have the privilege of being called a student, but getting a head start on your financial health is always a good idea.

For those savvy college students that want some investment tips for before they graduate the following has been prepared.  

Build Your Credit History

It may not be immediately obvious why building a credit history is important to securing your investment future but ensuring that your credit score is in an above average or at least acceptable range will make securing loans when you get out of college much easier. You may also look better to potential employers with a sturdy credit score at a young age. One way to build your credit history is to open a secured credit card. This is a real credit card but it is backed by your own money so there is no chance to mess up and spend money that you don’t have. You can think of this as a credit card with training wheels.

Small Consistent Investments are the Way to Go

Deposit money into an indexed fund. This invests your money in a diversified range of stocks and ensures that you are protected from too much volatility or risk. This account can also be funded with as little as $25 a month. You will hardly feel the pinch of putting away this amount of money but it will continue to grow over the years.

Set Up a Roth IRA

It is never too early to start thinking about funding your retirement. The earlier you start, the less money you can invest on a monthly basis and you can still achieve phenomenal results. To fund a Roth IRA you need to have a source of income or employment because you cannot deposit money from the “Bank of Mom and Dad” into your IRA. Starting this account will also get you into a good habit for when you get a more highly paying job.

Join an Investment Club

This is a fantastic way to learn from your peers and get the motivation you might need to stay on track with your financial goals. You are likely to get a lot of useful experience that is transferable to your own finances and you increase the chances of excelling at managing your money when you leave college.

These tips can guide you through the maze of investing for beginners and give you the confidence you need to get started.