Students Should Begin Investing If They Can

Going to a community college can cost a lot less than going to a 4 year traditional college. With education costs so high, many students are finding that a 2 year degree from a CC will do just fine and it won’t leave them with tons of debt like the other option would.

Jobs are tough and many students are struggling to find ways to keep their heads above water with their finances. That being said, any college student who is fortunate enough to be able to save any extra money should think seriously about learning how to invest it. Don’t buy more beer….buy stocks instead!

Studies show that putting money away every year from a young age will get you way ahead when it comes to retiring. The statistics are amazing and that is one of the problems with families today: they wait too long to start saving and investing and end up relying on the government’s small Social Security pay out in their later years.

College students today who have the ability to save should slowly stick that money into the stock market. They have the longest time horizon to invest and can withstand any bear markets. Stocks are best for patient investors who have years and years of time ahead of them. Students today might wait for the Apple split and then buy some stock in the $70 to $90 range that it will cost. Apple stock now pays a great dividend and the company is doing billions in stock buybacks to support the stock price. The stock is splitting 7 to 1 and it is a good way to get started in the stock market. From there a young student should continue putting money in a basket of stocks in different industries in an effort to diversify.

Obviously, most students can’t invest money they don’t have and that is the situation most find themselves in. But for those that are fortunate to have a little extra, they should invest smartly and not waste it.

Use A Community College To Save Money The First Two Years

Most everyone agrees that if you want to give yourself the best chance of getting a good job, a college degree is a must. The problem in 2012 though, is how to pay for those four years without putting yourself too far behind in the debt department? College age kids today have a real dilemma!

One way to reduce costs is to go to a community college for the first two years and then transfer to a bigger name college for the final two. In this case, a student’s final degree would be from the big name college and no one will ever know they didn’t go there the whole time! Yet they will have saved a ton of money because those first two years will be at a school that costs significantly less.

Community colleges sometimes get a bad name because people think that they are for students that can’t get into “real” colleges. But this isn’t true in an economy where many very smart students are opting for community colleges to save money. After all, is it really worth going in debt $50,000 or more for a degree in Communications, English, or something else? By limiting their costs for the first two years, many students are doing the financially smart thing.

Jobs for college students and college graduates aren’t available in the numbers they once were. This makes getting a pricey degree a risk rather than “must” in many cases. Students are scrambling for alternatives in financing and anything else they can come up with to find a way to get a higher education. Luckily, community colleges are there to help out for some of them who can’t afford the full price of four years at a major university.