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.