Investors buy shares in the fund and when the price of the stock goes up so does the value of your investment. Currently, stocks are gaining value by about 9 percent a year. It is best to keep your money in a mutual fund for several years at a time since the market has consistently risen over time. This is a risk-free investment. All Certificates of Deposit carry penalties for early withdrawal that vary with the length of term.
Bonds are similar to CDs, but they are issued by the government instead of by banks.
This is just the beginning. If you are wise, you can earn enough through investments to pay off those student loans, erase your debt and maybe even start working toward larger investments like a house or a car. Go to your local bank branch and speak to a representative who looks friendly. There are helpful people out there. You can go to Merrill Lynch , or Charles Schwab online to learn more.