How should I invest

Paying for College
1

<p>I’m working a job over the summer at the local library making $9/hr at 15/hrs week. I want to take 100% of that money and put towards college cost. Lets say I make $1000 over the summer. Should I take the money and and put towards my college payments already to lower needed loans? Or should I put in a cd, money market or bond, and let it grow until I graduate? And continue to add a little bit ever summer.</p>

<p>*When you see how much college cost, you realize the financial burden is more than imagined.</p>

2

<p>If that’s all you’re going to make, I wouldn’t suggest that you work. </p>

<p>The amount you will receive from the Pell Grant only would be four times greater than that of your summer earnings. ($4,050)</p>

<p>I would think about this more in-depth.</p>

<p>Do you know your family’s adjusted gross income for the year of 2005-2006?</p>

3

<p>Working is a GREAT idea and it IS expected that students contribute to their college expenses by working. You can ask your FAid office about whether there is any effect of your earnings on FAid, but at $1000, I doubt it.
If you’re not yet in college, the money you earn can be used for educational expenses to apply for college as well, such as application fees, testing fees, deposits, etc. If you’re under 18, you can save the money in a Coverdell IRA account–you should check with your folks and any tax advisor for more info. CDs or money market funds are a good, safe way to hold on to funds you know you’ll be needing in the near future.</p>