Asked on 19 May 2020
I see myself to be working part time or taking up internships over the course of University, which will also bring in some income over the 4 years. Should I just keep this money in the bank or should I invest? Please advise!
Firstly, I will suggest for you to create a well-defined goal. For example, understand the total school fees that you will need to be paying at the end of each school term. Furthermore, determine your income potential and expenses during this period.
Here is a Guide:
Surplus / Shortfall
After we have these information, you will know exactly how much is your surplus or shortfall for your goal (e.g. school fees).
If you will have a surplus, then you can use this amount to invest. In effect, we are taking the conservative route to ensure that you pay your school fees on time.
Meanwhile, if you are between 18 to 26 years old, then you should consider Standard Chartered JumpStart account. This is because it gives an interest rate of 2% per annum for your first $20k balance. Furthermore, there is no fees and minimum balance required in order to maintain the account.
Moreover, it comes with a debit card that gives you 1% cashback on eligible spending. With this in mind, it is certainly a worthy account for a start.
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