Starting to invest: Can you start investing as a student?

Many young people and students would like to start investing, but they think that they have not yet saved enough money to really invest. As a novice investor, you also need to know the basics before you can start speculating on the stock market. What options are there for young people to invest? As a student and investor newbee, how can you invest enough to get started? How much can you earn extra by investing?

Why should you, as a young person or student, start investing now?

Studying is not cheap and it may therefore be an idea to not only work on building wealth for the future, but also to think about how you can earn some extra money now. It certainly doesn’t hurt to start investing young and learn the ropes. You must realize that investing can involve a risk; This is no different for a novice, young investor than for an experienced investor with a high investment. If saving takes too long, investing is an excellent alternative as long as you do it wisely.

Where can you start learning to invest as a young person?

At many reputable banks and online trading institutions you can get started with very little or no starting capital. Consider, for example, ING, ABN AMRO, Robeco or Binck. You can use savings but also borrowed money. Keep in mind that borrowing money is quite expensive, even for students, and that you therefore have to make a serious profit for this to work out well. This is apart from the fact that borrowing money to invest may not be a wise choice. Also make sure that you first start learning how to invest before you actually invest. There are stock market games and investment games especially for young people and students to learn how to invest.

What should you pay attention to when investing as a student?

Do not immediately opt for relatively risky ways of investing such as Forex, where you speculate on the fall and rise of the value of foreign currencies. Rather choose to start with investment funds or choose to invest in leading and stable companies on the AEX. Start with a low deposit and try to play with the credit that you have agreed with yourself. Just like in the casino, you have to invest a clear maximum, which you then do not exceed. Familiarize yourself with the possibilities on the Internet, at your own bank or at online investment companies.

Can I make unlimited profits or will I get into trouble with the tax authorities?

Please note that investment profit is also income if you declare it as other income in Box 1. You can generally safely declare your income under Box 3 and then pay capital gains tax. To be sure, always call the tax authorities when you are preparing your tax return to avoid unexpected surprises. As a student with student finance, you are not allowed to earn too much extra. You can earn an additional net amount of approximately EUR 8,000 per year without the risk of having to repay additional earnings or losing your public transport card. From September 2015, students who receive student finance for the first time for a bachelor’s or master’s degree program will be allowed to earn unlimited additional income (DUO). However, this does mean that the additional income limit for 2015 may only be exceeded after September 2015 and that for 2015 the additional income limit must therefore still be taken into account in the tax return until that month.

How do I start investing and take it step by step as a young person?

Make sure you first determine how much money you can really afford to lose. Gain information about all forms of investing and participate in stock market games for young people and students. Spread your investments over different shares or investment funds and preferably stay away from risky forms of investing in the beginning. Always be careful which organization you do business with; choose a recognized investment institution and not unknown providers who promise sky-high returns. Pay close attention to how much you can earn additionally as a young person and student and declare your income correctly in your tax return.