When you think of investing, do you view it as something that makes you anxious or something you’ll figure out later when you have a stable job or extra money lying around? In college, many students simply think they have to deposit a large amount of money to be able to invest, however, this is not true. As technology has continued to advance, investing has become a lot easier to dive into than it once was. There are many beginner-friendly apps that allow anyone to dip their toes into the world of investing. This small action of investing now can pay off big later.

Limited Cash, No Problem

Many people still believe you need thousands of dollars to be able to enter the stock market. While this was true at one point, nowadays, with the innovation of technology, the stock market is now one tap away. With apps available on every smartphone, there are many micro-investing platforms to choose from. Some of these include Fidelity, Acorns, Robinhood, SoFi, and Stash. While each have their unique functions setting themselves apart from their competitors, each have the primary goal to have a platform friendly to beginner investors.

You might wonder, “How do I invest $5 on one of these platforms?”. A popular approach to investing extra cash is in ETFs (exchange-traded funds). You can think of these as a basket of stocks. Instead of investing your $5 into one company, you are diversifying into 100’s of companies. This diversification makes investing less risky, than if you were to put it all into one company like Apple. These apps also have automatic investing features which allow you to set an amount that you want to invest each week or month and not have to think about your portfolio for a while.

Learn As You’re Growing Your Portfolio

When you are young (and I am not putting a number on that), time is on your side. Also, the stakes are usually lower because there are less responsibilities on your plate. This early start can afford you an opportunity to get familiar with key financial terms such as dividends, compound interest, and market volatility. As you grow more familiar with what is happening in the stock market, your confidence in the process of money working for you will help shift your mindset towards a long-term focus.

Personally, I started investing in 2021 and I really didn’t know what I was doing. I was skeptical of the stock market, but I decided that investing my spare change into an app wouldn’t hurt me. For me, I liked using Acorns as my primary investing online platform. Acorns allows their investors to set up a recurring investment like many other platforms, however, what I found unique about them was their round-up feature. This round-up feature rounds up everyday purchases made with a linked card to the nearest dollar and deposits the difference into your investment account. I didn’t notice these round-ups leaving my checking account because they were fractions of a dollar. However, over my four years of investing, it has helped me invest hundreds of dollars without noticing its effects on my account.

Invest in Your Future Self

I didn’t know this at the time, but I was really investing in myself, more specifically, my future self. Every dollar invested is contributing to your future financial health. Whether it is a round-up of 35 cents, $5, or $50, each is contributing to a brighter financial future.

As a college student, it is difficult to pay for so many things like tuition, food, and housing, so if investing is not in the cards right now, then don’t sweat it. If you are in college right now, you are already investing in your future by getting a higher education. However, if you can spare $5 a week, then your money will have time to work for you as you are obtaining a higher education. You’ll look back and see how the sacrifice in the past paved the way for you to become financially free.

Want to learn more about what you can do now to manage your money, build wealth, and set yourself up for financial success? Join us for Financial Literacy Week at Idaho State University, April 7-10, 2025! This whole week is dedicated to the many facets of finance from a kickoff of a fun trivia night to a presentation about “Your Credit Score: Why it Matters” to a panel discussion led by finance experts about estate planning, insurance, real estate, and much more. Boost your money confidence and start investing in your financial future!