If you find yourself wondering if college students are too young to start investing, let us be the ones to tell you that the answer is no, absolutely not! In fact, college students have a distinct advantage when it comes to investing because time is on their side.
It’s well-understood that the most powerful way to drive long-term gains is by holding investments for the long-haul and taking advantage of compound interest. The term compound interest refers to reinvesting interest.
In other words, it’s the interest that grows and put towards the principal investment. Compound interest is a powerful force that can expedite portfolio gains over time, and if you’re a college student looking for ways to invest in your financial future, you don’t have to wait any longer!
It’s important to get started as soon as possible and learn more about investing your money sooner rather than later. Investing now will help you strengthen your financial future over time. Check out these tips on how to start investing while you’re still in college!
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How to start investing
Why start investing in college? Well, let’s say you deposit $25 into your investment account every month. After 10 years, that could equate to $3,000 in investments!
Add in the projected investment returns and compounding interest, and you could be sitting pretty before you turn thirty. But before you start investing, you need to get your hands on some extra cash.
This isn’t always easy for college students who are bogged down by debt, living costs, and other expenses. But just because it can be challenging to find ways to put aside extra funds doesn’t mean it’s impossible.
Here are some ways to improve your cash flow so that you can start investing right away!
Take on extra work
It can be challenging to balance work on top of your classes, but the truth of the matter is that even the smallest amount of money can go a long way in your investment portfolio. Look for available part-time jobs in and around your community.
Consider waitressing, working at your university, babysitting, or taking on jobs as a freelancer. There are many ways to find flexible work, especially if you conduct some research and look into the most popular sources of part-time work in your area.
Take courses at your local community college
You’ll save on tuition fees and keep your debt in check if you can knock out those pesky elective requirements at your local community college. Some universities will allow you to substitute an elective requirement, such as a mandatory language, science, or math class, with credit from a university. Oftentimes, this option is a lot cheaper than taking the same courses at your university.
Stick to a budget
Cutting back on frivolous spending can help you find ways to save more money, leaving you with even more money to invest. It helps to stick to a budget.
In this case, the bank account RoarMoney℠ from MoneyLion is an excellent option for automated budgeting tools. You’ll gain access to weekly spending reports that’ll allow you to view your spending habits by category.
Plus, you can set a budget and track your financial progress. Did we mention there’s also everyday cashback rewards, early paycheck deposits, and integrated price protection? Learn more here.
How to start invest with MoneyLion as a college student
MoneyLion is a one-stop-shop banking app that offers savings, banking, and investing tools. There are three main ways by which college students can start investing in their future with MoneyLion, including fully-managed investment portfolios, a Crypto portfolio, and a Safety Net.
Each of these options are best suited for different financial goals. You may find that one of these options works best for you compared to the others, or you might find yourself wanting to get started with all three of these options at once! Take a look at how they compare below.
Fully-managed investment portfolios
A great place to start investing when you’re in college is through MoneyLion’s fully managed investment accounts. There are no minimum investment requirements or management fees. It only costs $1 per month.
MoneyLion partners with Wilshire Associates, a thirty-year industry leader in the investment world and known for managing the assets of some of the nation’s largest institutional investors. Wilshire Associates has developed five distinct asset allocation portfolios.
You can choose how aggressive or conservative you want to be with your investments, as well as decide when to withdraw funds so that it suits your best interests. You can even opt into automated investing, which is where a preselected amount of money is deposited into your account as often as you choose.
MoneyLion’s Crypto program
The latest development from MoneyLion allows you to buy, sell, and earn popular cryptocurrencies like Bitcoin and Ethereum around the clock. Known as Crypto, MoneyLion’s newest reward program allows investors to earn cryptocurrency. It’s a great resource for newbies and seasoned investors alike. Learn more about MoneyLion Crypto here.
MoneyLion’s Safety Net feature
If the COVID-19 pandemic has taught us anything about finances, it’s the fact that there is a lot of value in having an emergency fund. Your emergency fund should be able to cover about three to six months’ worth of everyday expenses. It’s an important way to prepare for unexpected expenses and build for the future all at once.
MoneyLion offers a Safety Net feature that is designed to help you build your finances for tomorrow. It’s integrated with MoneyLion’s all-in-one banking features and comes with access to 0% APR cash advances through Instacash. Learn more about MoneyLion’s Safety Net here.
Why MoneyLion’s fully-managed investment portfolios are ideal for college students
College classes demand a lot of time and energy, so that’s why a fully-managed investment account is a great option for college students. MoneyLion partners with finance industry experts who will help you select your investments, make your trades, rebalance your account, and more.
Of course, we’ll start by asking you a few questions through the app to learn more about your preferences and goals in order to design a personalized portfolio first. You can sign up for these features within minutes, too. All you have to do is add money when you’re ready and set your preferences based on your financial goals.
MoneyLion does the rest by managing your portfolio and moving shares around on your behalf. You can even set up the auto-invest feature to turn these behaviors into ongoing actions. You have enough to think about in college, so let auto-invest remember to invest for you.
No investment minimums
Being a college student generally means you don’t have a career that brings money in quickly. You might be thinking, “How can I invest when I can barely afford my living situation?” That’s where no-minimum investing comes into play! It’s a perfect fit for college students who want to enter the world of investing.
You’ll want to keep it slow and steady, and this is the perfect avenue to do just that. MoneyLion is a great option because you can open an account with as much money as you can or want to invest. Even if you only have $5 to invest, you’re still taking a step in the right direction!
Low-cost ETFs for college kids
ETFs stands for exchange-traded funds. It’s a way of investing in which assets like stocks and bonds are held in your name. Starting with low-cost and lower-volatility ETFs would make sense for you as a college student because you’ll have time on your side.
Plus, you’re just beginning your investment journey, so there’s no rush. Investors of all levels of sophistication choose to add ETFs to their portfolios because ETFs allow investors to create a diversified variety of investments with lower costs and fewer risks.
Invest in tomorrow today!
Starting your investing journey when you’re in college is a wise choice. You might not have a ton of extra cash, but the earlier you begin, the better your chances of capitalizing on compound growth for years and years will be.
Compound interest can grow your money exponentially over time. The more time you have to invest, the better! Whether it’s through fully-managed investment portfolios, cryptocurrency, or an emergency savings safety net, MoneyLion makes it easy to manage your finances all in one place.
If you’re looking for a simple and noncommittal way to grow your money while you’re in college, MoneyLion is the place to start. Learn more here!