What to do with my money?

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Theking997
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Hi, I am in my first year of university and have around £3k saved and I don't know what to do with them. I don't really have any expenses since I live at home, with my parents, and access my university learning material online due to COVID-19. I will also be getting some more money in January from Student Finance. I was thinking about investing my money but I don't want to take any risks, I also have a student bank account that gives me around 1% AER on balances up to £2.5k. All advice is much appreciated.
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Peter Barlow
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Do you drive? If not you could learn with it
It you do get a cool car with it
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tinygirl96
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Here are a few options

Option A- open a student bank account (recommended highly)
Option B- have a savings tin etc (not the best option)
Option C- spend it all (ill advised choice)
Option D- get advice first then save it (better option)

It is up to you to decide what to do.
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Maxistan YT
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(Original post by tinygirl96)
Here are a few options

Option A- open a student bank account (recommended highly)
Option B- have a savings tin etc (not the best option)
Option C- spend it all (ill advised choice)
Option D- get advice first then save it (better option)

It is up to you to decide what to do.
Option E - if you are feeling a bit pekish just eat it
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Theking997
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(Original post by tinygirl96)
Here are a few options

Option A- open a student bank account (recommended highly)
Option B- have a savings tin etc (not the best option)
Option C- spend it all (ill advised choice)
Option D- get advice first then save it (better option)

It is up to you to decide what to do.
Thanks for your reply. I already have a student bank account, I get around 1% AER each year on balances up to £2.5k. I was thinking about investing it, but I am worried about the risk involved.
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Theking997
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(Original post by Peter Barlow)
Do you drive? If not you could learn with it
It you do get a cool car with it
I already have a driving license, got it when I was 17. I also had a car, drove it for around 2 years, but sold it recently because I didn't really use it that much and insurance is expensive.
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Le_WildPathogen
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Invest in index funds (I.e. s&p 500). Low risk and decent return based on history.
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tinygirl96
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Good luck
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Kutie Karen
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Save some and spend some.
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Etomidate
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Are you planning on ever buying a house? If so, put it in a LISA and the government will give you a 25% bonus.
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Quady
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(Original post by Theking997)
Thanks for your reply. I already have a student bank account, I get around 1% AER each year on balances up to £2.5k. I was thinking about investing it, but I am worried about the risk involved.
Are you not worried by the risk you're taking leaving it in an account paying 1% interest?
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Theking997
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(Original post by Etomidate)
Are you planning on ever buying a house? If so, put it in a LISA and the government will give you a 25% bonus.
Yes I am planning to buy a house, but I think that it is too soon to star saving for that, I will probably start after graduating, when I have a job and reliable income.

(Original post by Quady)
Are you not worried by the risk you're taking leaving it in an account paying 1% interest?
I don't think that there is much risk since I am the one who gets the 1% interest on my savings, in other words, the bank pays me.

(Original post by Le_WildPathogen)
Invest in index funds (I.e. s&p 500). Low risk and decent return based on history.
Thanks, will consider that.
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Quady
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(Original post by Theking997)

I don't think that there is much risk since I am the one who gets the 1% interest on my savings, in other words, the bank pays me.
And you think the risk of inflation being greater than 1% over the next year is low then?
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Margo.22
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If you are interested in something that requires investment, then you can use this money. Maybe you have an interesting business idea.
Either you have been dreaming about something for a long time or you want to buy something.
I think you should know better.
For example, I have an easy attitude to money. I don't worry about them because I know they will always come back to me.
I often relax and try my luck. I've been sitting here https://mr.bet/ lately. It gives me unreal pleasure, and money can be multiplied.
If you are so interested, you can also try. Choose what is closer to you.
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Johnpolo
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(Original post by tinygirl96)
Here are a few options

Option A- open a student bank account (recommended highly)
Option B- have a savings tin etc (not the best option)
Option C- spend it all (ill advised choice)
Option D- get advice first then save it (better option)

It is up to you to decide what to do.


what perks for opening student bank account do you get?

need to deposit?
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artist905
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"I was thinking about investing my money but I don't want to take any risks"

Generally young people don't need to be as risk adverse with their money as they have a 'longer investing horizon'
If you want to get a decent return, investing in big bank stocks is great because banks are 'too big to fail'. Pick lower priced bank stocks that pay out a good dividend.

Your first step is opening a low fee self-directed brokerage account.

If you put that £3000 in one or two bank stocks that yield a 5% dividend, you will earn an average of £150 a year in dividends.

You will never lose your money as long as you can mentally handle the roller coaster of the market. Just make sure you don't need to access that £3000 in the case of an emergency. This needs to be money you can afford to lose (but you wont actually lose it)

*Disclaimer: This is not professional investment advice.
Last edited by artist905; 1 month ago
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𝓖𝓱𝓸𝓼𝓽𝓵𝓪𝓭𝔂
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(Original post by Theking997)
Hi, I am in my first year of university and have around £3k saved and I don't know what to do with them. I don't really have any expenses since I live at home, with my parents, and access my university learning material online due to COVID-19. I will also be getting some more money in January from Student Finance. I was thinking about investing my money but I don't want to take any risks, I also have a student bank account that gives me around 1% AER on balances up to £2.5k. All advice is much appreciated.
Daughters in a similar situation (shes living in halls though). She had some scholarships coming through and we saved some upfront just incase she needed it, which she hasnt. Shes using it for internship opportunities be it here or abroad. some places abroad costs more to live than over here, so good to have some back up money
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Blue_Cow
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I agree with Ghostlady.

£3,000 isn't that much in the grand scheme of things. Seeing you are that risk-averse, I would advise against even using relatively "safe" tracker funds as I'd imagine if you saw a drop in your returns you'd panic and sell at a loss.

Keep the money where it is and use it for things like relocation for placements/internships just as Ghostlady's daughter is planning to do. Having that ability/safety net far outweighs whatever benefit you get for investing what is a relatively small amount of money.
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Deggs_14
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You could try investing if you wanted to, but I would say save it. Your life is in a good place at the moment, and the money will come in handy say for a deposit for a house if you decide to move out in a few years etc. A student "loan" is the good type of debt to have, don't spend the money on short-term or unsustainable rubbish just because you have it.
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Johnpolo
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|I would invest in storh token. payout 31/12/20 msg me for info
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