When it comes to building up wealth, the best time to start is as soon as possible. Getting a job brings pay with it, and it’s a good idea to put some of that pay toward investing for the future. Many college students get jobs to help pay for college and living expenses. They should use some of their hard-earned money to start building wealth so that their money has a long time to grow. Here are some investment ideas for students.
Use a Discount Brokerage
Many times, financial advisors will steer investors toward proprietary mutual funds that benefit them as much or more than their clients. While these folks might be able to give some good advice, their track record of consistently beating the market as a whole is quite sporadic.
When thinking of how to invest as a college student, utilizing an online brokerage that charges low fees for purchasing stocks, bonds and funds is a good first step. Some brokerages offer trades from $4.95 and up, and they also provide quite a bit of data that can allow would-be investors to research the investments that they might want to buy. Every dollar that is not spent on management fees or transaction fees is a dollar that can go toward making money for the investor, not the advisor.