Most college students are more focused on passing classes than following the stock market, yet investing early could have huge payoffs — as in, thousands of dollars in payoffs.
James Dravin, a junior computer science major at Cal State Long Beach, started investing in stocks when he was 22.
“I was talking with my friends about starting our own business, and then I got the idea [to invest],” Dravin said. “Then I started educating myself about the stock market and have been investing ever since.”
Dravin said the most important part of investing is to become educated about the stock market, buying stocks and the risks involved in investing.
“I think anyone interested in investing in stocks should use sites like E-Trade,” Dravin said. “It’s really the best way because the site makes it really easy, and you can just go online and check how the stocks are doing.”
Investing a small amount per month is a great way to accumulate financial knowledge, according to Cindy Chen, a CSULB finance professor.
“I recommend students start investing even $50 per month into stocks because, with real money involved, it’s motivation to learn about the stock market,” Chen said. “They should not wait until they have graduated and are working.”
Chen said the first stocks one invests in should be low-risk so that young people can save for an emergency fund.
“I recommend that students start a saving account with a community credit union because they will get the highest interest rates,” Chen said. “When purchasing stocks, they can gradually raise the risk tolerance and later start investing in stocks with more risk and higher returns.”
Dravin said that, although he lost money in the stock market, he made more money than his initial investment.
“There was a time when I sold stocks and I would have made almost $100,000 if I kept them,” Dravin said. “I have made a lot of money investing in stocks. I would say almost $100,000 per year.”
Dravin said he keeps most of his money in the stock market and that he is working while going to school to avoid being lazy.
Students who would like professional guidance on investing can go to the Career Development Center, which offers free financial counseling provided by the Financial Advising and Counseling Education Services.