4 Best Investment Strategies for College Students in 2022

15 June 2022

High income and revenue are good; saving most of this money is better.

A sad fact in our society is the evolution and booming spending culture that fails to recognize the importance of saving. 

There can never be enough money to save. Accepting this fact is the first step in creating a habit of saving. 

You find it easier to save once you start. It is a habit; like all habits, it should be nurtured to flourish.

Increasing the salary for most people does not translate into increased savings. 

Waiting for children to finish school is not a motivator to save more. 

Getting a more prominent client does not encourage a person to save more. 

These and many more are, at best, excuses not to start a savings habit today.

This is all explained using one phrase, lack of a culture of saving. 

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I believe that doing something consistently makes it a habit; it gets easier with each pocketed cash. 

This is why a bigger salary in our society deludes people; they will save more while the inverse is true, they spend more. 

The world will always have a shiny trinket or service you can buy; thinking about the latest car or the latest phone model will leave you in a cycle of spending without higher savings. 

You need to learn how to save and invest your money in the best investment strategies for college students in 2022.

I compiled a list of the 4 best investments in 2022 based on an in-depth study of the subject. These include:

  • High-yield savings accounts.
  • Value stock funds.
  • Short-term certificates of deposit.
  • Short-term government bond funds.


High-Yield Savings Accounts


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This is a form of savings product issued by the government that earns higher interest than the rates offered by the national average. 

High-yield savings bonds make about 0.7% annual percentage yield, a significant difference compared to the national average of around 0.07% annual percentage yield.

You should consider that majority of online banks, non-bank providers, and credit unions that frequently link themselves with banks for FDIC insurance have low rates. 

In contrast, high-yield savings bonds continue to exhibit stability and provide some of the highest yields in the market. 

Exiting the covid-19 period makes these accounts an integral part of your portfolio to strengthen your emergency fund.


Value Stock Funds

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A person seeking this option invests in stocks considered undervalued by experts based on their fundamental characteristics. 

Value stock funds starkly contrast with growth investing, which deals with emerging companies exhibiting the potential for high growth.

A good value stock fund investing strategy involves selling stock or gaining dividends from a previously undervalued stock. 

Increasing share prices offer investors dividend payments. 

It is crucial to note these companies are likely well-established.

Warren Buffet is one of the most successful value investors in the world.


Short-Term Certificates of Deposit


Certificates of deposit are a form of deposit account offered by credit unions and banks. 

You set aside a portion of incoming money for a certain period while receiving a fixed interest rate of return before receiving the principal when the maturity date is due.

Certificates of deposit are an ideal savings option divided into long-term and short-term certificates.

Current market turmoil makes short-term certificates of deposit less risky while offering high rates of return. 

A business is unlikely to go under within a year. Choosing a long-term certificate of deposit increases your chances of losing your savings.


Short-Term Government Bond Funds