Although a college student's earning power may not be as high as that of a corporate executive, it's still important for them to set aside a specific amount of money with every paycheck as an investment to themselves. These investments can be earmarked for high-yield savings accounts, certificate of deposit accounts or even retirement accounts. Regardless of where it is placed, the important thing is for the investment to be made consistently and for it not to be easily accessible. Experts say that saving a little at a time can add up to significant amounts down the road because of the principle of compounding interest, where interest is returned and helps the principle grow (See References 1).
Internet banking has made investing much more accessible to different types of consumers. With little or no money, college students can slowly build an investment portfolio that suits their short and long-term goals. Financial institutions such as ING Direct have both high-yield savings accounts and subsidiary branches like Sharebuilder.com that can allow college students to buy shares for only $4 per trade once they invest automatically (See References 2).
The time spent in college is a good time to begin to expand one's knowledge of what investment opportunities are out there and how they can best be used. By joining or creating an investment club, college students join minds with their like-minded peers and share investment ideas, discuss the challenges of investing while in college and brainstorm about ways they can improve their investment objectives. The good thing about students participating in an investment club is that it will increase their knowledge-base, make them more integrated into the campus community and add an impressive line or two to their resumes.