How to Invest - Investment Club Spotlight

Written by: Pranav Vaddepalli (‘26) & Dhanush Suresh (‘28)

Investing is often seen as something only adults with high paying jobs and Wall Street connections do, but the truth is anyone can learn how to invest, including students. Investing means putting money into assets like stocks or funds so it can grow over time. Instead of letting money sit in a savings account where inflation slowly reduces its value, investing allows your money to gain value through compound interest. This means you earn money not just on your original investment but also on the profit it has already made. Starting early gives students a major advantage because even small amounts of money can grow over many years.

There are many types of investments to choose from and each comes with different levels of risk. Stocks are shares of companies and can grow quickly, but their value can also fall. Bonds are safer because they act like loans to governments or companies that pay interest over time. Mutual funds and ETFs bundle many investments together which lowers risk by spreading money out. Index funds are popular with beginners because they follow the overall market and grow steadily over time. Some people invest in cryptocurrency, but it is risky and unpredictable so it should only be considered after learning about safer options.

Getting started as a student is simpler than most people think. The first step is to learn basic financial ideas such as how the stock market works, how companies make money, and what risk means. It is also important to set a financial goal. Some people invest to save for college or a car while others think about long term wealth. Teens under 18 can open custodial brokerage accounts with a parent or guardian through companies such as Fidelity, Charles Schwab, or Robinhood. The best strategy is to start small, invest regularly, and stay patient. Markets go up and down, but smart investors think long term and avoid emotional decisions.

There are also common mistakes that beginners should avoid. Many new investors chase trending stocks without doing any research or they put all their money into one company. Others try to guess when the market will rise or fall, which is known as timing the market, but even experts often fail at this. Good investing is not about luck. It is about making informed decisions, staying consistent, and balancing risk with safety.

The Investment Club helps students learn these skills in a friendly and educational environment. Members explore topics such as portfolio building, company research, stock analysis, and financial news. The club also hosts paper trading challenges that allow students to practice investing without using real money. By learning how to invest now, students can build confidence in handling money, make smarter financial decisions, and prepare for a more secure future.