Top methods to finance your investments during your student years

In the world of personal finance, there are numerous tools and resources available to help individuals build a solid financial foundation. For college students, the journey towards financial independence begins early, and investing is a key component of this process.

One popular investing app that caters to this demographic is Acorns. Acorns rounds up purchases made with a linked debit or credit card to the nearest dollar and invests the difference. With a monthly subscription fee of $3 for an individual account and $12 for a family account, Acorns offers a simple and accessible way for students to start investing.

For those seeking a more traditional approach to investing, books such as "The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns" by John Bogle and "Richer, Wiser, Happier: How the World's Greatest Investors Win in Markets and Life" by William Green provide valuable insights and lessons from legendary investors.

Another essential aspect of investing is education. Interactive Brokers' Trading Academy offers free on-demand courses and trading lessons for new investors, while Fidelity's How to Trade course is a four-week virtual class designed specifically for beginners. These resources provide a solid foundation for understanding the basics of creating and executing a trading strategy.

College students can also take advantage of tax-advantaged accounts like Individual Retirement Accounts (IRAs) to build future savings. By making contributions to a Roth IRA, for instance, students can benefit from tax-free withdrawals during retirement. Contributions to Roth IRAs are made with after-tax dollars, but by making contributions while in college, students can avoid a larger tax bill down the road when their income will likely be taxed more.

An IRA can be an excellent opportunity for college students to defer taxes on any profits or dividends and deduct contributions from taxable income. Additionally, an IRA allows students to build their future savings, especially if they're earning money with a job.

For those looking for more information on personal finance topics, Bankrate's Dayana Yochim, a veteran investing writer and financial journalist with over 25 years of experience, recently contributed to updating articles in this area.

Staying informed about the latest trends and events in the market is also crucial for successful investing. Podcasts like "The Compound and Friends" and Barron's "Streetwise" offer 30-minute episodes each week, discussing current events, investment strategies, and economic trends with expert guests.

In conclusion, investing plays a vital role in building a strong financial future. Whether it's through apps like Acorns, books, educational resources, or tax-advantaged accounts like IRAs, college students have numerous opportunities to start investing and gain practical financial education. By taking advantage of these resources, students can prepare themselves for real-world financial decisions beyond academic theory.