Closing out one of CAUSE Leadership Academy’s last few sessions, the cohort all hopped on a zoom with Covington Capital Management, a finance consulting firm that assists with investing and wealth planning. As someone who is not at all well-versed in the world of finance, there was a plethora of information I was introduced to, from the importance of investing early to the different types of investment accounts.
Prior to this workshop, I had always been meaning to start becoming more financially educated as well as invest in some fashion but I never knew where to start. Everything felt so alien and confusing. What is the difference between an IRA and a ROTH IRA? What is the purpose of a 1040? Is there really such a thing as a W-9 or am I just making it up? If so, what even is it?
While there is still so much to navigate in the world of finance, I was able to form a clearer understanding of investing and how I could start myself. Having both a savings and checking account, I wanted to put my money to work so that rather than just sitting in an account doing nothing, it could be active and grow. Right after the workshop with Covington Capital Management, I began talking to my cohorts to figure what I could do now. Since I’m a student and not able to hold a full-time job, I wouldn’t be able to have a 401k nor have the income to invest in either a ROTH IRA or IRA, so I still wasn’t sure how I could start investing. As a business major, Pisith was able to guide me on how to create a brokerage account and what I should invest in. He explained to me what mutual funds were and how investing in them can be like another savings account.
Soon after when I got home, I decided to download Robinhood to make a brokerage account and invest in an S&P 500. As a beginner, I only put in a small amount just for a trial run. While I had previously thought there was just one, just like there is only one NASDAQ or one DOW Jones, I soon learned that there were actually different types of S&P 500s and not just one singular S&P 500. Though I still cannot explain coherently what NASDAQ or Dow Jones are, I am glad I have at least dipped my toes in this world to become more financially educated, I definitely have a lot more to learn.
