Students Investing in Stocks: Is it Worth It?

Screengrab via Google Finances Investing in stocks is a great way to ensure financial stability for studies is the future. Stocks also help students learn how to understand business.

Melissa Curran

Assistant Social Media Manager

&

Charlese Freeman

Student Life Editor

With the economy ever-changing and unreliable, more people are depending on “side-hustles” for additional income. Finding an extra source of income is much easier these days. The age of social media and cell phones  allow communication to flow  freely, so anything from hair to baby-sitting can provide extra cash. 

Stocks are a lucrative investment to consider. So, why aren’t more students doing it?

According to Bankrate.com, three in 10 millennials say cash is their favorite long-term investment, but a third of Gen Xers, 38 percent of baby boomers and 44 percent of the Silent Generation invest in stocks.

The answer is simple. People are impatient. Students attending school now prefer instant cash. Unfortunately, this is a downside of investing in a share of stock. 

Those who invest in stocks are using stocks for future financial support.  

According to the Poynter Institute, the Dow Jones has gone up 32 percent since President Donald Trump took office. 

Student loan debt has increased 26 percent over the past five years. More and more college graduates are taking jobs where their college degrees are not useful. Financial stability is an important topic that many college students never considered until long after college.  

Wealth plays a major role in investing time and money. Working-class Americans tend to dismiss the idea of investing in stocks because the idea of being a stock investor is seen as a exclusive outlet for the wealthy.

According to politifact.com, The “bottom” 80 percent of Americans only own 6.7 percent of the stock market while the “next” 10 percent own 9.3 percent and the “top” 10 percent own 84 percent. 

This misconception keeps many working-class citizens away from an amazing opportunity. Another con to investing is the risk of losing money.

“Today’s teenagers are in the best position to experiment with the stock market because of their youth, and they stand to benefit the most when they invest early on in their careers,” according to investmentnews.com.

If you invest money in a stock, there is no way to know for sure how well the company will do.

However, a great deal of knowledge and research is required before investing any money in companies.

It wishes to set up a separate account for investing. Banks make it extremely easy and provide assistance with stock brokers and accounting information.

Jamie Kizer, the current manager of the entrepreneurial leadership center in the Innovation Center, was a previous financial planner and stock broker for IDS, an American Express company in Harrisburg. 

“Absolutely, students should invest because of compounding interest. Time is your friend. Add $5 to a small account consistently and just keep adding. There are absolutely no cons to investing, just be mindful when spending and saving money, especially on a limited college budget,” said Kizer. “When investing in different stocks I would be aware of risk. The best way to invest is to go aggressive and try to absorb as much of that risk as you can.” 

Consider some of the most popular brands that are loved by millions of people. For instance, Apple is always a safe bet, as it dominates the technology industry worldwide.

Stocks will help students to create a financial and business legacy. 

Email Melissa at: 

mcurran9@live.esu.edu

Email Charlese at:

cfreeman2@live.esu.edu

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