Best Investment Apps For College Students

What Are The Best Investment Apps For Beginners

The best investment apps for beginners focus on a few main features: user experience, risk management, and available information. Beginners should find apps that show them the ropes while making investments that fit their personal financial goals. Based on this, here are some of the best investment apps for beginners:

Know Your Investment Options

We’ve thrown around a lot of terms stocks, bonds, mutual funds, etc. So, let’s go over some definitions for common ways to invest.

Savings account. A savings account is the most basic financial investment, which allows you to store money securely while earning interest. The annual percentage yield, or the real rate of return earned on an investment, reaches 0.50% on some accounts. A savings account allows for you to differentiate your everyday spending money kept in a checking account, from money that is meant to be used at a later date. This type of account is federally insured up to $250,000, so you won’t lose your money if the bank fails. You would typically do this at a bank. Could be the same bank you have your checking account with, but some people prefer to put their savings at a different bank. Choosing a different bank might make sense for you because you can shop around for the best rates.

Certificates of deposit . This type of account is similar to a savings account but with a fixed time period and a higher fixed interest rate . So, the catch is that it locks you in for a certain time period where you can’t touch that money or else you will face a penalty . So, it’s a great way to make more money than a typical savings account, but you want to make sure it’s money you won’t need for anything so that you can drop it there until the time period two years, three years, whatever is up.

Where To Start Investing

The first step: What type of account are you going to put your money in?

A brokerage account is a taxable account that allows you to buy and sell stocks, ETFS, bonds, mutual funds and other types of investments without a fear of penalty. Many brokers today offer low minimum deposits to get started. Investors utilize brokerage accounts for day trading and long-term investing and to save for short-term financial goals.

When it comes to getting started, you don’t have to do it alone because there are plenty of apps out there to help guide you in this journey, including Acorns, Betterment, Fidelity, SoFi, Robinhood and TD Ameritrade. Some allow you to make individual trades in stocks, bonds and mutual funds, and others have you choose your risk level. And then it automatically invests your money in mutual funds that match that. So, do some research. Choose one. If you feel like it isn’t working for you or you’re curious, try another one until you find what’s right for you. There’s no one right or wrong way to invest.

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Waiting Too Long To Get Started

Its never too late to start investing. But the sooner you start, the more time youll give your investments to grow. In other words, you increase your potential for earning a lot more if you start now rather than later.

Just take a look at the difference 10 years can make in the chart below.

The investment portfolio of the person who started investing at 25 is more than 2x the portfolio value of the person who started at 35! And its more than 5x the portfolio value of the person who started at 45!

The key takeaway: take your time to research what you want to invest in and then get started ASAP.

Be Aware Of Behaviors That Can Undermine Your Investment Performance

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Best For Those Who Hate Budgeting: Cleo

Most budgeting apps try to make budgeting as painless as possible. Cleo takes it a step further and makes budgeting fun.

It does this by using hefty doses of irreverent humor and lots of style geared toward the young. This is not your mom or dads budgeting app.

Plus, Cleo doesnt merely give you a list of numbers and leave you to figure things out on your own. It delivers financial advice in simple, easy-to-digest spending updates, hypes, and roasts. These words of encouragement or caution help first-time budgeters stay motivated and on track.

Additional features:

• Set monthly budget targets based on your spending
• Automatically save with roundups and other savings hacks like a swear jar, which triggers roasts when you spend over your budget goals
• Get cash back on everyday purchases
• Build credit with a secured credit card, the Cleo Credit Builder Visa card
• Get the basic plan for free
• Upgrade to the Cleo Builder level for $9.99 per month a 33% discount for students and get the secured card, cash advances up to $100, and credit score coaching

Built In Tax Efficiency

M1 Finance allows you to minimize your tax liability by using tax efficient strategies when selling investments. M1 Finance is the only free investing platform we have come across that offers a tax efficient selling strategy.

When you withdraw money from your M1 Finance account, your investments are sold in this order:

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Should I Invest In Stocks

With both investing apps and trading apps you will usually have access to a selection of individual stocks and ETFs:

• Individual Stocks: buying shares in individual companies such as Amazon, Google, Starbucks, Walmart, etc.
• ETF stands for Exchange Traded Fund – a group / theme of related stocks bundled together.
• Tip: ETFs are an easy way to diversify your investment portfolio and often times offer less risk than investing in individual stocks.

With that in mind, were now going to discuss the four best stock market investing apps and the two best stock trading apps for college students. If youd like to learn more about any of the following investing apps I encourage you to read my more full in-depth reviews on each one .

Are Investment Apps Safe To Use

Yes, investment apps are safe to use in the same way it is safe to use a brokerage firms website to invest. These apps use industry-standard security tools and protocols to keep your data safe. They also have insurance from the Securities Investor Protection Corp. , which protects against the loss of up to $500,000 in securities and cash if the member app provider winds up in financial distress.

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Decide How Much Money You Have To Invest

If you don’t already have a system in place for tracking your expenses, it’s important to set up a budget. Figure out how much money you make , and how much money you have left after paying for basic expenses such as rent, utilities, phone, cable, food, etc. Figure out how much you like to spend on things like going out, clothes or entertainment. Then, from what’s left, set aside a portion for savings.

Sun recommends prioritizing your emergency fund, which should include around six months of living expenses. Once you have a cushion in place, you can take some of your savings and start investing it.

One thing you have to decide is how much risk you are willing to take. There are some investments that could make you a lot of money, but you could also lose a lot of money.

“You may say, yes, I’m comfortable with risk. Let’s go aggressive,” Sun explained. “But, if that aggressive decision means your $1,000 portfolio could drop to $400, how do you feel about that?”

Now, to be clear in that scenario, you never actually lose that $600 unless you cash out. If you don’t need that money , then you can let it ride and see if it bounces back.

But, if all of that makes you a little queasy, either 1) Don’t invest a lot in a risky investment or 2) Stick with less-risky investments.

Ready To Start Your Journey

• Saving money in college allows you to pay for big expenses and minimize debt.
• Money management apps teach you how to create and stick to a budget.
• With money-saving apps, you’ll find the best prices on groceries, gas, and airfare.
• You’ll also develop healthy financial habits, like setting goals and investing money.

College tuition in the U.S. continues to climb. According to the College Board, in 2021-22, tuition and fees rose by 1.6% for in-state students at public four-year universities.

To effectively handle the mounting costs of higher education, all students should develop a high level of financial literacy. Smart money management lets you minimize post-graduation debt, while simultaneously helping you save funds for outings with friends and that study abroad trip.

This guide provides a list of 16 mobile applications to help you create a budget and save money in college. We also provide some useful money management resources.

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Always Know Where You Stand

To make sure you’re on track to realize your goals, regularly check your portfolio online. Not only will it give you a clear understanding of your investment, but it will also remind you of your long-term goals. “If you are young and your circumstances aren’t changing much, you only need to check up on your portfolio a couple times a year,” explains Dimig. “Check that you have the right amount of risk in your portfolio and that you are contributing regularly. If you need help, there are lots of resources at your fingertips that you can access on your phone or at home.“

The information within this document is being provided for informational and educational purposes only. It is not intended to provide specific advice or recommendations for any individual. You should carefully consider your needs and objectives before making any decisions. For specific guidance on how this information should be applied to your situation, you should consult the appropriate financial professional.

Any type of continuous or periodic investment plan does not guarantee a profit or protect against a loss. Since such a plan involves continuous investment in securities regardless of fluctuating price levels of such securities, you should consider your financial ability to continue your purchases through periods of low price level.

INVESTMENT AND INSURANCE PRODUCTS ARE:

Work From Home Opportunities Apps

In the last two years, we have come across that several jobs can be done remotely and function absolutely fine. After observing it, multiple companies have started hiring, and employees also begin looking for a job that can function from home. It is an ideal startup app idea for beginners, as people are looking for an app that has all information regarding work-from-home opportunities apps.

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Song For Your Mood App

There are two types of people: one who has the same playlist and listens to their favorite song. And the second are the ones who like to listen to songs as per their mood. The mobile app will play music according to user mood, like if its a lazy day and users feeling that- the mobile app will play songs that are suitable for a lazy day.

Best App Tied To A Bank Account: Simple

Money management is often a big challenge for most students, but with an app like Simple that syncs your bank account and budgeting tools, it is means you will be doing everything in one platform. It is an entire bank account in one simple app and has quite a few features tied in. Simple helps you track expenses, and with a feature that encourages saving, you can rest assured of staying in control of personal finances. It is free-to-use, and a safe-to-spend feature makes it an outstanding installation for mobile use so that your financial plans remain on track.

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Investments College Students Should Avoid

While investing in college can be a great opportunity to grow your wealth, some investments require a higher level of insight and research. If youre getting started in the market for the first time, you may want to avoid the following asset classes until you have a strong understanding of the investment sphere.

Options: Options contracts are agreements between two parties to conduct a transaction to buy or sell shares of stock in the future. More than a third of options contracts expire worthless, which means that you can potentially lose your investment. A loss like that is unlikely to happen when investing in more stable assets, which is why youll likely want to avoid options when you first start investing.

Futures: Futures contracts are agreements between two parties to buy or sell assets or commodities at a fixed price in the future. Like options contracts, futures contracts can be difficult to understand and profit from, which is why theyre considered to be poor investments for college students.

CFDs: A contract for difference is an agreement for two parties to exchange the price difference of an asset or commodity between the opening and closing dates of the contract. There are multiple types of CFDs, each of which requires its own in-depth research and strategy. The U.S. currently prohibits CFD trading for citizens.

The Best Budgeting Apps For College Students Of 2022

Managing your budget as a college student is tough. You may be dealing with money on your own for the first time. Plus, youre trying to balance all the expenses of going to school: paying for textbooks, supplies, meal plans, and transportation potentially with a limited cash flow.

But learning the art of stretching a dollar is well worth it. Budgeting can help you reduce student loan debt. And the earlier you make a habit of saving, investing, and paying your bills on time, the better you set yourself up for the future.

Fortunately, you dont have to resort to using a pencil and ledger like I had to in my college days. Today, there are plenty of digital apps to help you make a budget.

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Any Do: Best Activity Planner App

This is one of the most popular apps for to-do list used by College students for creating a to-do list of their work. When you have got a lot of work then you might be in a condition of forgetting some things at times.

Instead of remembering each and every task just create a list of items in this app and tick mark them as soon as you are done. You can either use it with touch or control it with your voice. Also, you can use the app to sync other devices connected to the phone, so that you would be reminded easily. Not only this, but you can also add a widget to your home screen to access it quickly.

Make Sure You’ve Got Money To Invest

As a rule of thumb, you shouldn’t start investing until you’ve got enough money saved to cover three to six months of living expenses, though this varies based on your personal circumstances. And, even after you start investing, save yourself stress and be sure to keep enough in savings to cover unexpected expenses that might pop up.

If you have debt, evaluate whether or not it makes sense to wait to invest until you’ve paid it down. To do this, compare your potential returns on investments against the interest rate you’re paying on loans. For example, credit cards have high interest ratesoften higher than the returns you could get from investing. So it would make sense to pay them down before starting to invest. However, other loans, such as student loans, may have lower interest rates. Depending on your personal preference, you could choose to start investing and pay down your lower interest rate debt at the same time.

“No amount is too little to start,” says Ted Dimig, Head of Investments for You Invest, J.P. Morgan’s online self-directed investing platform. “The advantage that students have today is that new digital platforms have made investing easier than ever before, and you can get started with just a few dollars.”

Once you’ve evaluated these trade-offs, decide how much money you can invest without risking your financial health.

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