Investing: make money grow while in college

by Cheryl Wagstaff staff writer

Most college students must take out loans to pay for their education. Therefore students should have some sort of investments to help them pay off their loans or even help them in the distant future.

College students today are living in a world where a college education is both necessary and extre~ely expensive. Although Cabrini College offers many grants and scholarships to aid its students, there are stiJI many students who have to take out loans to cover the rest of the tuition, room and board costs.

After graduation, students not only have to worry about finding a job, pay off their loans and find and pay for a place to live but they also have to start planning their retirement funds. It is a wellknown fact that by the time today's college students are old enough to collect Social Security, the funds that will be given to them will not be substantial enough to support the person's lifestyle.

Due to all of these factors, it is important that students start investing money. There are several ways. Some ways could potentially provide more earnings than others. However, those ways are usually more risky than the ones that give you minimal interest.

A couple of ways to invest money that are · less risky than entering the stock market are bank accounts ·and savings bonds. A savings account is going to give the ownei: of the account minimal interest while most banks require a minimwn balance of $300. If the balance falls below the $300 mark, the owner of the account will actually be charged around four dollars. Banks also provide money market accounts. These accounts require more money to be put into the account than the savings but the owner of the account earns a higher interest on their funds. The minimum balance for these accounts can be anywhere from $1,500 to $5000. If the balance drops below the minimwn charges, a $20 fee may be incurred.

Money can multiply if you invest it correctly.

Most students are given savings bonds when they are young. They are bought at half of the face value on the bond and over a period of 10 to 20 years the bond eventually reaches its face value. If the bond is not cashed in when it reaches face value, it will still continue to gain interest. Bonds do not drop in