How You as a Student Can Start Investing with Little Effort Today
Sean Collar
Economics A2
Many adults wish they started investing or saving their money younger. Unlike our parents, we have the tools needed to start investing, and yes, you can start today. In less than 5 minutes, I will give you some amazing ways you can begin your investing adventure, all with pretty minimal risk.
Investing is of utmost importance, and there are many reasons to support this. First and foremost, by simply keeping your money in a bank account, and never spending it, you are actually losing money. This is due to the annual inflation rate exceeding the APY (Annual Percentage Rate). The average savings account has a 0.06% APY. The annual inflation rate normally sits around 2%. This means you are always losing at least 1% of your money each year. $10 of your $1000 is now gone, literally by “saving” it.
So you want to start making your money “work for you”. One of the easiest ways to do this is to use a high interest savings account. Ally.com offers a 1.8% APY, 30 times the national average. This will help your savings keep up with the inflation rate. Using a high interest savings account like ally.com is the simplest way of “investing”.
Next is a way to automate your investing, without you even noticing. Acorns is an app that does this for you. Let’s say you buy a coffee for $3.60. Acorns will round that up to $4.00 and invest the difference, $0.40, in companies and mutual funds that match your interests and goals. I personally love this concept, and use it myself. For any of you who don’t have time to research companies about which to invest in, Acorns is great. You answer a couple questions, setup your account, and just by making your daily purchases, you are investing. You can also double, even triple your round-ups, as well as make recurring investments on a daily, weekly, or monthly basis.
For those of you who have some extra time to research your investments, or just want to invest in actual stocks, let me introduce Stash Invest, the newest of these companies. Stash allows their users to invest in fractional shares of hundreds of public companies, mutual funds, ETFs, and more. Oh, and one more thing. The trades are commission free, unlike most other brokers. This means you can buy more shares of a company instead of putting it towards a fee. Stash also allows automated investing, meaning it will execute trades for you on a daily, weekly, or monthly basis.
Investing is crucial to achieving financial freedom, and also to having an enjoyable life after retirement, worry free. With an annual return of 7%, your money will double every 10 years. Another thing to keep in mind is that the more research and time you put into your investments, larger returns are likely. Starting to invest today, while time is on your side.
Works Cited
Anspach, Dana. “Keep Reality in Mind When Looking for a Good Return on Your Investment.” The Balance, The Balance, 25 June 2019, www.thebalance.com/what-is-a-good-return-on-investment-2388458.
“Invest, Earn, Grow, Spend, Later.” Acorns, www.acorns.com/.
“What Is APY and How Is It Calculated?” Do It Right, 20 Aug. 2019, www.ally.com/do-it-right/banking/how-is-annual-percentage-yield-calculated/.
This post was very helpful to me, and I agree with it totally. Showing these simple ways to invest is a great way for younger people to start saving and growing financially. The Acorns app seems very useful and I will probably get it myself. This is a very relevant topic and i'd say anyone who reads it could benefit.
ReplyDeleteI would have never known that there are apps out there that would help you save money I had always assumed they were some sort of cash grab that would watch your every single move and the second you put some personal info it would milk you dry of money.
ReplyDeleteI really like the concept of this post. I also believe that youth are undereducated about the investment opportunities that are available to them. I think that everyone should invest money even if it isn’t a huge amount because your odds of a good return are pretty good. Teenagers and even adults are always trying to make money with putting in minimal effort, well, investing is maybe the easiest way to do that. You can sit on your couch and research stocks to invest in and if you pick the right stocks money will be coming your way. I think that it is super important for kids our age to begin investing and for them to become more educated on what investments are available to them. If I had to guess I would say that at least 90% of the students here at Pewaukee High School would not know that you are losing money by saving it in your bank account. Yes, this is a very minimal amount you are losing but in the end $10 is $10 and you want that money.
ReplyDeleteI am currently looking into invest, and this article was very helpful to point out some key factors within it. I agree in how investing your money is crucial, as people should start as soon as they can. I also like how you gave recognition to the company ally, as experienced investors reading this might find them extremely helpful.
ReplyDeleteI found this post to be very informative and helpful to student who don't completely understand stocks and trades. I have had conversations with my friends about how it all works and how you know to invest in what, because I personally would like to invest my money in stocks. The apps you provided seem pretty effective and I like the overall purpose of the Acorn app. A question I have is, what kind of questions does the Acorn App provide to know what businesses you would like to invest in and how trustworthy is it since they choose where your money goes? Have you experienced significant losses or have you just been gaining money since you've started?
ReplyDeleteThis is a very informative post, well researched. It seems that a lot of people don't get into investing because it is a foreign and impossible world for them. When, in reality, investing is something everyone can do. I think something that you should have acknowlegded in your post is risk. The more return you are getting, the more you are risking at a higher risk. As an investor you must consider risk at all times.
ReplyDeleteDrawing attention to investing, something that seems extremely daunting at first is a great idea and something that will be actually useful for people trying to make it on their own. Not having to work through an investment group is a big plus for some because complete strangers can be less reliable than technology, and the information on inflation compared to interest was very helpful for decision making.
ReplyDeleteI believe that this topic is very important for all of us. Most of us either have jobs or are looking for jobs and when we get money we let it sit in the bank. I don’t think I realized how much of an impact investing can really make. I think that it can be crucial to invest because of the turnouts from it. I think that the suggestions you made for the apps is really cool because of the way that all of us use our phones and have that opportunity to invest. I found the APY number very interesting because we don’t think about how it can affect our money until we truly see that difference. This topic is very useful because of the resources and issues there are with it.
ReplyDelete10/24/19- Collar, I have to say you made me want to start investing. The concept of acorns is really intriguing to me. I want to start an Acorns account because when I go and spend there is that $0.20 that just ends up sitting in my car, maybe I put an extra buck into gas with all my extra change but I probably won’t. When you invest in companies could you pull out your investments or shares at any time? What would happen if an investment in a rising business drops off? Do you need a credit card to start this process?
ReplyDeleteMany teenagers, especially people a our age are clueless about how to start investing in our future selves.This post was very comprehensive in explaining how & where to invest. Especially when you can start by using an app makes it so much more easily accessible. You can download the app and start investing right away. And even if you no very little about handling your money, the apps create a user-friendly setting to start investing.
ReplyDeleteI really liked this article because I feel that more teenagers need to start investing at a younger age. As you said in the article, the younger you start investing the more money you can make. This also lowers the risk of the investments because you don't need to worry about not being able to afford a house or simple necessities that are given to you by your parents. I have used some of these apps before and can confirm they will help you make money.
ReplyDeleteI really liked this article and it was enjoying and it was very useful. This article helped show everyone that you should take time and invest to help get your money started at a young age. This is very useful because most people our age aren't investing or even worrying about it and this is the best time to start while you are young. This also is useful cause it shows ways that you can start without much effort and you can get started in a short amount of time.
ReplyDeleteI felt that this post was very valuable and worth the read. I know that as a 17 year old, I've never been taught anything in regards to making investments or how to save my money. It's not something that a normal high school class teaches you. This taught me a lot in regards of how to start saving and investing my money to better prepare me for my future.
ReplyDeleteAs someone so focused on getting into colleges and finding a career, I spend a surprisingly little amount of time actually thinking about what I want to do with that money, or how to invest it. This article is nice, as it's actually simple, where every time I think of investing my stomach turns a little bit. It's a responsibility I know I'll have to face up to at some point, and I definitely needed a guide on how to make that easier for myself. I especially enjoy the idea of Acorns,as I could absolutely use someone making decisions for me, as I'd just dwell on that, not knowing what to do, for an embarrassing amount of time. I may even get into that a bit more.
ReplyDeleteI really enjoyed reading this article because I am personally looking to make some money aside from my job. This helped me understand that you should take time with your money and start doing stuff with your money at a young age to set yourself up for adultery. Most people our age aren’t investing or even considering it because they don’t know what it is or what it does with your money and this article shined at light on what investing looks like.
ReplyDeleteThis article really opened my eyes to the fact that merely leaving your money to sit in a bank is not always the best option. I didn’t know there were simple apps out there that can make investing really easy. My question is: are these apps a reliable and smart way to invest money? I know investing money takes a lot of thought and planning, so are these apps that make it simple, really a good way to begin investing. A small fraction of daily purchases being invested can add up quite quickly considering the amount of purchases some consumers make, so I’m not sure if an app like Acorns would work for everybody. Like you say the more money and research put into investments the more lucrative they will be, so it may not be wise for those uninterested in doing research to let an app invest for them.
ReplyDeleteDespite its importance, people our age aren’t told or taught to invest our money very often. There is definitely a lack of awareness that people seem to have surrounding investing. As you mentioned, however, there are many different and easy ways that anyone could do to start investing. To me, acorns makes the most sense and is a very interesting concept and something that I’ll start using for myself.
ReplyDeleteI think this post was very insightful to some people including myself. I think it isn't very well believed that people under 18, those who haven't even graduated high school, can start investing for their retirement. I think the way you explained how you can invest your money and how it will have a much larger impact on your future was very well thought out.
ReplyDeleteThis article really helped me see that my money should not just be sitting in the bank. I think that is a better option than having all cash, but investing is a much better way to have it. I think a lot of companies are also realizing there is a niche for easy ways to invest for young people. But, are these apps a safe way to invest? Do they have safe ways to keep your data protected? I also think these companies need a good way to advertise to young people, to make sure they get their service out there.
ReplyDeleteTeens often overlook the importance of investing their money now and decide to wait until they're 30 or 40 because they aren't aware of the tools that are available to help them. I thought this article was insightful because it talked about different apps, like acorns, that are able to help teens start to think about investing their money now rather than later.
ReplyDeleteI think that this article does a really good job of bringing to light the lack of knowledge that most youth have about the importance of beginning to invest sooner than later. I know that for me personally, I never even gave investing a second thought before being recently introduced to it in Personal Finance. I definitely thought that the world of investing was something reserved for older adults. I also appreciated that you provided different investing options for people based on their experience, interest, and time that they are able/willing to commit to the investment process.
ReplyDeleteI liked this post and how you made sure to keep each item concise. Doing this ensured that each segment was very quick, but still in enough detail that I got the picture. The focus of smartphone apps was a good one, as in modern society, our smartphones are very important to us, and the fact that they can help us beyond just social media gandering creates more importance to them, and also shows that we do have ways to invest if we just look into them.
ReplyDeleteThese are really easy and successful ways for the 21st century millennial's to be able to invest without spending the hours upon hours researching individual stocks and bonds. While also not worrying about how you are going to gather your certain amount of money towards your investment fund. With this new source of concise smartphone app information in one specific spot, it should make it much easier for as up and coming adults to not lose our money in low interest savings accounts and to invest earlier so when we reach the retirement age, we can retire from our careers earlier.
ReplyDeleteI think your topic of inflation with a normal savings account was interesting. Of course you are making money, but its really losing value with inflation. I think the Acorns way of investing is very interesting especially for people who spend a lot of money on small purchases such as coffee or food. It is perfect for high schoolers like ourselves who are only really making smaller purchases.
ReplyDeleteThese examples of websites/apps you can easily access to help with finances are very helpful! The idea that was provided by acorns is really interesting to me and seems like it could create a big impact on your savings starting with just a few cents. Inflation is a topic that will always be crazy to me, especially now knowing that it is caused by just having a normal savings account. When creating savings accounts for myself in the future, I will definitely look for a high interest account.
ReplyDeleteLove the article, and well written. It seems that a lot of people don't get into investing because they think you have to be "older". When, in reality, investing is something everyone can do at any age. I think something that you should of added more about is the risk factor. More risk more return etc. Anyways love the post and really convinced me to start investing.
ReplyDeleteThe concept of investing, while extremely valuable, is often overlooked by many of our age group. Some may feel that investing the limited money they have in the stock market is too risky, and others see it as just too much effort. But, investing is an essential skill that many in high school should look into. Iphone apps such as Acorn or Ally take out or lower the "time" and "risk" factor, decreasing the opportunity cost of investing. Now, investing is clearly the best option, and should be utilized by everyone with access to such simple apps and easy investing.
ReplyDeleteI knew that investing has many benefits, however, I had no idea how to invest my money. This article made it more clear to me of how to invest and many other factors about saving money. I thought it was interesting that regardless if you're "saving" money in a bank account, you're still losing it because of the 1% (at least) lost each year. Now, I am considering to try the Acorns app. The concept sounds like an effective way to invest; and personally, I know that I would end up investing a lot with this technique. I do have concerns about how safe the apps are, and if the apps use connection to my bank account to create these investments.
ReplyDeleteI agree with this article, investing early in life is really important because the sooner you invest the more time your money can grow. I also really appreciated that you took the time to research different apps to make it easier for beginning investors. Our generation and millennials especially don’t really know how to invest in the market and that’s really unfortunate because they could be growing their money at an even higher rate than what it currently is growing at.
ReplyDeleteThere's so many ways to invest your money, but it always important to know who your investing your money into. I feel with a lot of these apps people are worried where their money is going, and how trustworthy the company or app might be. Making sure that where you invest your money is reliable and FDIC insured, knowing that your money is safe. With these apps it makes it very easy to invest your money and be able to get a good return.
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