You hold long-term investments for years or even decades. Short-term investments only stay in your portfolio for shorter periods—think months, not years. These help you to meet your financial goals quickly and without much risk.
College students have a lot of hidden expenses, so don’t invest more than you can afford. Focus on creating an emergency savings account first. You can hold this balance in a teen checking account as you enter college.
You can get started by investing small amounts of money and continuing to make minor contributions whenever you have money available. Some micro-investing apps will even invest your spare money for you automatically.