Investing Money While In College

Many motivated young students are anxious to get a jump start on their earning potential and want to look into investing while they are still in college. This can be especially appealing given the power of compound interest over time. The industry of such students should be applauded but there are several things that should be remembered.

College Itself Is An Investment

The basic concept of college is that you are investing your time and money into making yourself more valuable in the long run. Because you are already making this investment, you want to make sure you make the most out of it. If you wind up harming your grades or taking longer to graduate due to working for investment funds then you are really just depleting the value of your initial investment. Additionally your investments may take a certain amount of time to monitor and maintain that you may not have at your disposal.

Your Earning Potential Will Be Increasing

Part of the investment of college is that you are forgoing income at a point in your life where it wouldn't be worth much, to maximize your income later in life when you will be earning much more. Once again if you are jeopardizing your college experience to earn extra funds for investing, you are working against your best interests.

Student Loans

Student debt presents some appealing options that many students are tempted to try, such as borrowing against their student loans and investing the proceeds. This can be very risky for a variety of reasons. Even if you invest in guaranteed return options like Certificates Of Deposits, you may risk having the money tied up when you need it or being hit with various fees that exceed what you make in earnings.