So you’ve got a little money, big dreams, and no clue where to start? You’re not alone. Most people don’t talk about investing until they’re older, but the best time to learn how to jump in is when you’re still figuring things out.
If you’re a teenager, new investor, or just stepping into adulthood, investing might feel out of reach. Maybe you think you need thousands saved or a finance degree to get the ball rolling. Spoiler: you don’t. What you do need is time, and if you’re reading this, you’ve already got the biggest advantage in investing, a head start.
Starting small still creates momentum, especially if you’re focused on smart money moves in your 20s, learning about financial planning for young adults, or exploring beginner investing as a student.
In this guide, we’ll break down everything you need to know about how to start investing young, so you can grow your money, hit your goals, and let your future self say thanks later:
✔ Investing as a teenager, with limited income
✔ The best investments for young adults starting out
✔ How to start investing on a budget with low minimums
✔ Simple steps for beginner investing for students
✔ Tools for building passive income for students
✔ Actionable tips for young investors ready to increase wealth
1. Use compound interest to build wealth from a young age
The truth is, when it comes to investing, time matters more than money. The longer your funds stay invested, the more they can accumulate through compound interest.
Imagine two friends:
Emma began investing at 18, putting away €25 per month.
Luca waits until 28, but invests €50 per month, which is twice as much.
Let’s assume they both earn the same average return of around 6%. By age 60, Emma’s €25 monthly contributions over 42 years grow to around €44 800, while Luca’s €50 per month over 32 years adds up to about €47 400. Taking action earlier beats investing more later.
That’s the power of compound growth.
Compound interest for young investors means your investment earns returns, and those returns earn returns too. This snowball effect can turn small amounts into serious wealth.
Starting to invest as a teenager is one of the most effective ways to build wealth from a young age. You’re not just investing money. You’re investing time. For young investors, time is the ultimate asset.
2. Define investment goals and create a plan
Setting clear goals helps you choose the right investment strategy, understand your timeline, and stay motivated. It also makes investing feel more purposeful and less confusing if you’re new to it.
This is where financial planning for young adults begins. Ask yourself what you want to achieve with your money and when you want to achieve it.
Short-term and long-term goals
Break your financial goals into two categories.
- Short-term goals are things you want to reach in the next one to three years. These might include saving for a trip, buying a new laptop, or putting down a deposit on your first apartment.
Since the timeframe is short, these goals are better supported by low-risk investing for beginners, such as savings accounts, money market funds, or short-term bonds.
- Long-term goals take more time, often five years or more. These could include buying a home, starting a business, or reaching early retirement. Because you have more time, you can afford to take on more risk with the potential for greater reward.
This is where diversified investments like ETFs or investing in loans can accelerate your progress. These are the kinds of goals where compound interest for young investors has the biggest impact.
Build your plan around your lifestyle
Your financial plan should reflect your real life. As a student, freelancer, or part-time worker, your monthly income might vary. That doesn’t mean you can’t plan. Ask yourself:
- How much can I realistically invest each month, even if it’s just €10?
- Do I want to split this between short-term and long-term goals?
- Would setting up automatic transfers allow me to stay consistent?
This is how you begin to make smart money moves in your 20s, before your earnings increase. You don’t need to have everything figured out. You just need to take the first step and build your life with intention.
> Discover the best investment ideas
3. Master the basics of investing
In investing, there are different ways to multiply funds. The path you choose depends on what you’re aiming for, how long you’re willing to wait, and how much risk you’re comfortable with.
Earlier, we talked about short-term and long-term goals. This is where they come in. Short-term goals usually call for safer, low-risk investing. Long-term goals have more time to develop, so you can consider higher-risk options that offer bigger potential rewards.
This is the basic idea behind risk and return. The more risk you take, the more your investment could grow, but also the more it might rise and fall in the short term. Lower-risk investments are more stable, but the returns tend to be smaller.
You don’t have to figure out the perfect mix right away. A good approach for investing as a teenager or anyone starting to invest at 18 is to jump in with a lower-risk strategy and adjust gradually as your confidence and experience evolve. It’s one of the most sensible things you can do if you’re focused on how to build wealth from a young age.
> Read our guide on investment basics
What are you actually investing in?
When people talk about investing, they’re usually talking about assets, these are financial instruments you can buy that either go up in value or earn you money. These assets are grouped into asset classes, and each class comes with its own level of risk and return.
You’ve probably heard phrases like:
- “The stock market is up today”
- “Bitcoin (crypto) crashed again”
- “Real estate always goes up”
These are just different kinds of investments. Some are riskier, like cryptocurrencies or individual stocks. Others are more stable, like bonds or investing in loans. Then there are balanced options like ETFs, which are popular choices for beginner investing for students and anyone looking for the best investments for young adults.
If you’re focused on investing on a budget or want to generate passive income as a student, it makes sense to initially experiment with options that match your timeline and risk level. In the long run, small regular contributions, especially when supported by compound interest for young investors, can create real growth.
> Find out how stocks work
4. Choose your investments and build a portfolio
Before choosing what to invest in, you’ll need to open an investment account. This is where your money will go and where your investments will live.
Here are some tips for young investors:
- Check for regulation so you know it’s legit and secure
- Look for low or transparent fees to keep more of your earnings
- Pick a user-friendly platform that’s easy to navigate
- Kick things off with beginner-friendly options like diversified or low-risk products
- Use platforms with learning tools so you can expand your knowledge as you invest
- Enable automation to stay on track without constant effort
Knowing how to open an investment account is a key step in taking control of your finances. Once your account is ready, you can tackle building a portfolio that fits your goals and timeline.
Types of investments you can start with
Once your investment account is set up, the next step is deciding where to put your money. Different investments suit different goals, timelines, and comfort levels with risk.
The best investments for young adults are predominantly simple, diversified, and easy to manage. They’re a great place to pick up if you’re new to the market. This is also why starting to invest early matters.
| Investment type | What it is | Risk Level | Time horizon | Good for |
|---|---|---|---|---|
| ETFs | Bundles of assets like stocks or bonds you can buy in one go | Medium | Long-term | Diversification and long-term growth |
| Loans | Investments tied to consumer or business loans offered by lending companies | Medium to high | Short to medium term, and often not as long as traditional investments | Earning regular interest income |
| Bonds | Loans to governments or companies that pay fixed interest | Low to medium | Short to medium | Stable income and capital protection |
| Savings account or money market funds | Very low-risk accounts or funds that earn modest interest | Low | Short-term | Emergency funds or short-term goals |
Low-risk investing for beginners allows you to test the waters without feeling overwhelmed. Over time, you can adjust your mix as you learn more and gradually become more confident in your strategy.
> Or explore alternative investments
5. Make investing a habit
You don’t need a lot of money to pursue investing. In fact, the best time to take action is when you have just a little to spare. This makes investing with little money ideal for anyone getting off the ground. The goal is to build the habit, not hit a target amount.
What matters most is being consistent. By setting up a regular investing routine, you give yourself the chance to build confidence, develop your portfolio, and cultivate strong money habits.
These beginner-friendly strategies can be beneficial:
Dollar-cost averaging
One of the best strategies for investing on a budget is dollar-cost averaging. This means investing the same amount regularly, no matter what the market is doing.
For example, let’s say you invest €50 every month. In January, the price is €10 per unit, so you buy 5 units. In February, the price drops to €8, so you buy 6.25 units. In March, it rises to €12, and you buy 4.17 units. Over time, your average cost per unit ends up being lower than the average market price, because you buy more units when prices are low, and fewer when prices are high.
This approach is ideal for beginner investing for students or anyone investing with little money. It’s also one of the most effective ways to start investing early, especially if your goal is to build wealth from a young age.
> Learn how dollar-cost averaging works
Micro-investing
Micro-investing is designed for people who want to invest, but don’t have a lot of spare cash. It allows you to invest very small amounts, a few euros at a time, through round-ups, recurring transfers, or on-demand contributions.
Why it works:
- It automates the habit with minimal effort
- It lowers the barrier to entry
- It lets you gain momentum if you’re not ready for larger contributions
Passive income from investments
As your investments begin to generate returns, you can withdraw the earnings and use them as passive income. Instead of reinvesting, you take the returns out to support your lifestyle, cover expenses, or save for new goals.
Get going:
- Choose income-generating assets that pay monthly or quarterly interest
- Set up automatic payouts so your earnings are paid out as passive income directly into your account
- Track your earnings to see how your passive income expands
Creating passive income for students or early investors takes time, but reinvesting your earnings is the first step. Build income that accumulates quietly in the background.
> Discover passive income ideas
Start small and think big with Mintos
You don’t need a fortune to begin investing. What you require is a plan, a goal, and a platform that supports you from day one. That’s where Mintos comes in.
Mintos gives you access to income-generating investments that are easy to understand and simple to manage. Whether you’re still figuring out how to invest at 18, learning how to open an investment account, or already working toward how to build wealth from a young age, Mintos is designed to meet you where you are.
Make the move today. Your future self will thank you! Here’s what you’ll find on Mintos:
- Loans – Earn regular interest payments, diversify across sectors and regions, and choose between automated or hands-on investing.
- Bonds – Invest from €50, earn fixed returns, and diversify your investments. A great option for those looking for steady, passive income.
- Passive real estate – Generate monthly rental income from property-backed investments with a lower entry point than direct ownership.
- Smart Cash – Access a money market fund with the highest rating that offers higher interest than traditional savings with same-day withdrawals.
- ETFs – Invest in ETFs globally with a single portfolio, enjoy diversification, and zero commission fees, starting from just €50.
Disclaimer
This is a marketing communication and in no way should be viewed as investment research, advice, or a recommendation to invest. The value of your investment can go up as well as down, and you may lose part or all of your invested capital. Past performance of financial instruments does not guarantee future returns. Investing in financial instruments involves risk; before investing, consider your knowledge, experience, financial situation, and investment objectives.
Any scenarios or examples provided are for illustrative purposes only. They do not guarantee specific outcomes or returns and should not be relied upon when making investment decisions. Actual results may vary based on market conditions, issuer performance, and other factors.
