the value of the liquidity and having an emergency fund is worth more than the pittance in interest he'd make at this point. you shouldn't be investing at all until you have a minimum amount of cash saved.
enjoy your cup of coffee.
If you look for a good interest rate, the money stays in there for years, and you keep adding when you can it WILL add up. If you're only planning on saving for a couple years it certainly wont make much.I totally agree. Intrest rates on $2500 are insignificant (correct me if I'm wrong)
Nicknaq, I say save it for school, but not in a place where the principle is at risk (i.e., don't put it in stocks). Even though interest rates are low now, an insured account is your best bet.
When I was your age, I also struggled with these kinds of decisions. The trick is determining a want from a need...needs must take precedence. You need to get through your last year of college; you merely want a telescope. But I think the mere fact that you're asking the question means you already know correct move.
And btw, good luck with your schooling .
Ok, I am going against the grain here and will probably get ousted for it, but in my opinion you need to realize that you are young. Your parents are still supporting you financially, and as such you are free to make risky decisions with potentially big rewards without serious risk to your own financially well being. You do not have to provide food/car/housing for you or your family, and as such you have no need for "emergency funds" or liquidity.
With current interest rates saving is just silly. You will get very little interest and inflation is sure to take its toll over the coming years.... (Warren Buffet just has an op-ed in the WSJ on this issue).... now is the time to take risks (smart risks... research, do homework, get involved) and learn from your mistakes....
It's silly to park your money in a low yield savings or CD that could be sitting in the market and gaining money in several other ways (you could trade... there are many ways to make money in the market)... and you can do it all without the fear of financial difficulties....
If you truly want to be successful (well... define successful) "monetarily" you MUST take risks...