With the rapid development of globalization, more and more international students choose to study abroad. In addition to experiencing different cultures and improving language skills, investing is also an important topic that international students need to pay attention to. As an international student, how to make good use of limited funds and start investing early is a problem that many students will encounter. This article will provide 5 key strategies for international students who want to start investing.
Choose online investment platforms suitable for small amounts
For international students with limited funds, choosing online investment platforms that allow small investments is a good option. Apps like Acorns and Stash allow people to invest their spare change from everyday purchases. platforms like Betterment and Wealthfront provide access to low-cost index funds with no minimum balance requirements. By investing small amounts over time through these platforms, international students can steadily build their portfolios.
Take advantage of student benefits and promotions
Many online investment platforms and financial institutions offer special promotions or discounted fees for student investors. For example, Charles Schwab provides commission-free trading to students, while Fidelity offers fee-free retirement accounts. Checking for student-specific offers can help maximize returns. International students should research student benefits from financial companies in their country of study.
Invest in yourself first
Before investing money elsewhere, international students should consider investing in themselves first through education and skills development. This can increase their human capital and future earning potential. International students could take additional courses, attend career development workshops, or gain work experience through internships. Investing time and money in increasing their capabilities can pay off handsomely down the road.
Start with safer, passive index funds
For beginning investors, passive index funds can provide a low-risk way to get started. Index funds like Vanguard’s VTSAX track an entire stock market index while requiring little maintenance. The broad diversification of index funds helps reduce risk. Sticking to passively managed index funds can also minimize fees compared to actively managed funds. As international students gain experience, they can gradually incorporate individual stocks and other assets.
Consult family and advisors
International students should solicit advice from knowledgeable sources when investing. Family members with financial experience can provide guidance. International students can also seek out professional financial advisors, accountants, or investment counselors, especially those familiar with the tax implications of investing as a foreigner. Consulting experts can help international students make wise investment choices suited to their unique situations.
In summary, international students can start investing by using online platforms designed for small dollar amounts, leveraging student promotions and benefits, investing in themselves first, starting with safer index funds, and consulting experts. With the right strategies, investing is within reach for international students seeking long-term financial growth.