<p>my mom says i could invest in stock, once i think of something decent to invest in.</p>
<p>is this a good way to make money for college?
how exactly does it work- i mean earning money. when the value goes up the price does? then if i sell it i get tht amount of money?
i've tried to look online but it seems a little confusing....</p>
<p>These days that’s a tricky business!</p>
<p>The prudent way to make money from stocks is to invest for the long term. For instance if your parents would have started investing for your college education when you were born their money would have likely grown and helped to cover part or all of your college expenses. </p>
<p>Stocks are not however a good way to “earn” money on a short term basis, particularly given the current volatile stock market. You are much better off to just get a job and forget about trying to make big money fast via the stock market–chances are great that you would instead lose the money you invest.</p>
<p>A coworker came into my office and said that company stock today has paid for half-a-year’s tuition for his son at college. Well, that’s all gone right now. In general, one should be in stocks early and then move to bonds as one approaches when the expenses will be realized.</p>
<p>You might try telling your mom you’d like to invest in mutal funds found in an age-based 529 college savings plan. There are stocks in those (and other investments) and if you’re 1 - 3 years from college, I’d say it’s “decently” low risk…but not a money maker at the point.</p>