But many students don't know how to begin. It's not like I have that much money to throw around, anyway. Cooney, adviser of the Finance Club, said college students first should look at their own financial troubles. Other options include certificates of deposit, mutual funds and stocks - each carrying different levels of risk and profit potential. Cooney said different investment opportunities have their own advantages and disadvantages.
Bank accounts are liquid but pay little interest.
CDs pay between 2 and 6 percent but, depending on the term of the CD, must remain untouched for a period of time. Investment decisions involve asking some important questions, he said. Cooney said students should diversify their portfolio to limit risk. Having someone invest for you costs money, Cooney said. However, certain mutual funds can expand your opportunities for earnings without the high commission costs that many brokerage houses charge.