If you are a student right now, there’s a good chance that your wallet feels more like a thin brochure than a bulky novel. Between tuition, food, rent, and the occasional iced latte that feels “absolutely necessary for survival,” saving or investing money may sound like a far-off dream. But students are actually in the perfect position to start their journey as future investors. You’ve got time on your side, the ability to take small risks, and the luxury of learning before the stakes get higher.
So, what exactly are the best picks for students who also want to think like future investors? Let’s break it down without making finance sound like rocket science.
1. High-Yield Savings Accounts (HYSA): The Gateway to Investing
If you’re starting out, your new best friend should be a high-yield savings account. Unlike your standard savings account that offers interest rates so low you can’t even buy a candy bar with the returns, HYSAs give you better rates, sometimes up to 4–5% annually.
Why is this a big deal? Because as a student, you don’t want your emergency fund lying around in a low-yield account. A HYSA is liquid (you can withdraw anytime), safe (FDIC insured in the U.S.), and earns you a little something on the side. Think of it as your money doing yoga—it may not bulk up instantly, but it’s staying active.
2. Index Funds and ETFs
If you want to invest without tracking individual companies every day, index funds and ETFs (exchange-traded funds) are a simple option. Instead of buying one stock at a time, you buy into a fund that holds many companies at once.
Take the S&P 500 ETF as an example. It follows 500 of the largest U.S. companies, giving you instant diversification. Over time, the S&P 500 has returned about 7%–10% a year on average. That’s far higher than the small fraction you earn in a savings account, which is why many long-term investors rely on these funds to grow wealth with less stress.
3. Fractional Shares: Because Who Has $400 for One Stock?
When you hear that one share of a big company (hello, Apple, Amazon, or Tesla) costs hundreds or even thousands of dollars, it can feel like investing is reserved for people who already own yachts. But fractional shares let you buy a “slice” of that stock with as little as $5 or $10.
This is perfect for students. You get exposure to blue-chip companies without having to sell your textbooks on eBay. It’s like buying a single slice of pizza instead of the whole pie—affordable, and you still get to enjoy the taste.
4. Retirement Accounts (Yes, Even in Your 20s)
Retirement may feel like a galaxy far, far away, but opening a retirement account early is one of the smartest moves you can make. If you’re working part-time or interning, you may be eligible to open a Roth IRA.
Here’s why this is gold: with a Roth IRA, you contribute after-tax dollars, and your money grows tax-free. That means decades later, when you’re chilling on a beach, your withdrawals won’t be taxed.
5. Skill Investment
Not all investments are about stocks and accounts. As a student, your skills are your biggest asset. Platforms like Coursera, Udemy, or even free YouTube channels can become your training ground.
And here’s the fun part: investing in skills isn’t just about online courses. Even learning to manage real-life responsibilities like budgeting while renting student apartments in Austin or balancing part-time work while living in a student apartment in Boston teaches you financial discipline that will serve you for life.
Think of it this way: a $50 online course that helps you land a $60,000 job later is the best ROI you’ll ever see.
6. Avoiding the “Bad Picks” Trap
Let’s be honest, students are often tempted by the wrong kind of investments: get-rich-quick schemes, meme coins, or whatever your roommate swears is “going to the moon.” While it’s okay to experiment with a small play fund (think of it as your fun-money allowance), don’t make these the foundation of your financial future.
Long-term wealth is built on patience, not panic-buying because Twitter said so.
Final Thoughts
The best picks for students are practical, accessible, and designed to grow with you. You don’t need a huge bank balance to get started.
The truth is, investing isn’t about being rich when you start, it’s about becoming rich because you started. And if you begin while you’re still a student, you’re already way ahead.
Where Amber Comes In
Amber helps you secure student accommodation of your choice on your study abroad journey. Amber has already helped over 80,000 students secure their homes abroad. Download the amber app from the Google Play Store or App Store to book an affordable home for your adventure.
About the Author
Kajol M is someone who’s passionate about sharing stories, ideas, and anything that sparks a little inspiration. When not writing, you’ll probably catch me buried in a book, playing an instrument, or getting lost in a playlist.