College Students: Don’t Wait Until Graduation to Start Investing

Column distributed by Hearst Connecticut Media Group.

Links to resources referenced:

Investor.gov: School’s Out, Investing For Your Future Is In
- https://www.investor.gov/additional-resources/spotlight/directors-take/schools-out-investing-your-future?utm_medium=email&utm_source=govdelivery
  - Related column excerpt:
    - “Schock recently released a guide that I’d like to make sure you know about. Called ‘School’s Out, Investing For Your Future Is In,’ the guide lays out the rationale for getting going now, along with some ideas on what to do.”
Investor.gov: First Job
- https://www.investor.gov/additional-resources/retirement-toolkit/first-job
  - Related column excerpt:
    - “That knowledge is fundamental to achieving financial security. Compounding takes time, with one exception: a 401(k) plan with a match. Someone who participates in a 401(k) plan with a dollar-for-dollar employer match doubles his money immediately. He can take that money with him when he leaves the job after the match vests. See Investor.gov’s ‘First Job’ webpage.”
Commonwealth: The New College Investor
- https://buildcommonwealth.org/research/the-new-college-investor/
  - Related column excerpt:
    - “Is it unusual for a college student to invest? According to a 2024 survey of 1,012 college students and recent graduates by Commonwealth, a national nonprofit that seeks to build financial security for vulnerable people, 44% of students were currently investing, even though the amounts are small (62% had less than $1,000 in total investments). There is nothing wrong with that.”
Investor.gov: Roadmap to Saving and Investing
- https://www.investor.gov/introduction-investing/investing-basics/save-and-invest
  - Related column excerpt:
    - “Schock recommends creating a budget ‘so you can better learn how to manage your money.’ You’ll want to start by figuring out your fixed expenses, things like housing and groceries, and then thinking about other items, using both a short- and long-term outlook when it comes to costs and future plans. To help the process, Investor.gov offers a ‘Roadmap to Saving and Investing’ and a Savings Goal Calculator.”
Investor.gov: Savings Goal Calculator
- https://www.investor.gov/financial-tools-calculators/calculators/savings-goal-calculator
  - Related column excerpt:
    - “Schock recommends creating a budget ‘so you can better learn how to manage your money.’ You’ll want to start by figuring out your fixed expenses, things like housing and groceries, and then thinking about other items, using both a short- and long-term outlook when it comes to costs and future plans. To help the process, Investor.gov offers a ‘Roadmap to Saving and Investing’ and a Savings Goal Calculator.”

Investor.gov: Introduction to Investing
- https://www.investor.gov/introduction-investing
  - Related column excerpt:
    - “Once the budget plan is complete, the next step involves the process of investing. Investor.gov’s Introduction to Investing section provides important information like ‘Five Questions to Ask Before You Invest,’ ‘Researching Investments’ and ‘Investing on Your Own.’”

Bankrate: 7 best ways to invest while you’re in college
- https://www.bankrate.com/investing/best-ways-to-invest-for-college-students/
  - Related column excerpts:
    - “Of course, the investments one chooses are key to success. It would be reasonable for a college student to consider the advice of Bankrate’s James Royal, Ph.D., in ‘7 Best Ways to Invest While You’re in College’: ‘One of best investments for college students is an index fund,’ like those based on Standard & Poor’s index of large American companies. A key aspect: ‘you don’t have to know a lot to get started.’”
    - “Bankrate’s Royal offers a final caution of keeping a ‘measured approach’ when you are starting out, adding: ‘Volatility comes along with even the best investments, so learning how to deal with the emotions it creates is an important part of the learning process.’”