Most students begin to make decisions about what sort of financial investments they need to make after they graduate while they are still attending college. It’s not an easy decision – rather, it’s one that takes time and some level of research – but this short guide will help you get started.

You may have "made" a lot of money through economics projects where you "invested" in stocks but playing the stock market in real life is much different. With great risk, you can have a great payoff or a great loss and unlike your econ projects, investing requires real funding to make an initial investment, as a single share can be quite expensive depending on the stock. Research the stocks you are interested in and watch the market daily before investing any money. It sounds silly but the best starting point would be reading a book like "Stock Investing for Dummies."

If you’re wary about the stock market, a safer investment would be in a bank or credit union. Many banks do not have annual fees for college accounts but in the current economy, some financial institutions do not offer high interest rates for savings accounts, money markets or certificates of deposits (CDs). Credit unions often have higher interest rates and may charge annual fees but it depends on the institutions' individual policies. Here are the differences between these accounts:

• Savings accounts: Savings accounts don’t require large balances and offer students the freedom of withdrawing money whenever needed. The downfall is low interest rates.
• Money markets: Money markets require higher balances since banks use the accounts to make investments but the interest rate is higher since you make money off their investments. The caveat here is not having the money readily available and being charged fees for falling below the minimum balance.
• CDs: CDs are great for long term use, as they require investments for a certain length of time. This account has a high interest rate and is insured by the FDIC but the drawback is breaking the CD to withdraw money means paying a hefty fee.

Are you currently investing your money? If so, how?

Radha Jhatakia is a communications major at San Jose State University. She's a transfer student who had some ups and downs in school and many obstacles to face; these challenges – plus support from family, friends and cat – have only made Radha stronger and have given her the experience to help others with the same issues. In her spare time, she enjoys writing, reading, cooking, sewing and designing. A social butterfly, Radha hopes to work in public relations and marketing upon graduation.

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