Good Investment Tips for College Students
The Benefits of Investing as a College Student
Building Healthy Financial Habits
Preparing to Pay Off Student Loan Debt
Common Types of Investments for College Students
- Traditional IRA. These accounts include tax benefits for contributions (with some deduction restrictions). That means students don’t have to pay taxes on the money they put in, and they can accumulate money more quickly. The downside is that they can’t withdraw the money until they’re 59.5 years old, and will have to pay taxes on those funds once they do withdraw them.
- Roth IRA. These accounts don’t include a tax benefit for contributions, but the taxation is usually minimal, and contributors can make tax-free withdrawals from these accounts at any time.
Certificates of Deposit
7 Good Investment Tips for College Students
1. Save Money Now
2. Research Brokerages
3. Open a Brokerage Account
- Cash account. This basic type of account uses cash on hand to purchase securities. Cash accounts are low risk and easy to set up for new investors.
- Margin account. This type of account allows holders to borrow money from the broker to make investments. Brokers can use available cash and purchased securities as collateral for the loan. These accounts are riskier and come with interest rates, but they can yield higher returns since they allow for bigger investments.