Small Investment Ideas for Students with Less Than $500

HomeInvestingSmall Investment Ideas for Students with Less Than $500

Want to Score Cash For Free?

  • Survey Junkie: Earn up to $50 per survey with one of the highest-paying survey sites on the web. Join Survey Junkie Now
  • SoFi Money: Earning money for unlocking better features sounds like a dream. But this free banking app really pays you $100 with you switch your direct deposit to SoFi Money. Get SoFi Money.
  • Aspiration: This mobile banking app lets you do everything for free and takes no fees — ever. Better yet, if you join through this link you can get $100 in your new account.

Looking for low-cost investment opportunities? Here are quick and small investment ideas for students those that have less than $500 to invest.

Looking for small Investment ideas for students? Then you are in the right place! I’ll share investing options for students and millennials to start investing with little money. 

We know that millennials are good savers, outperforming other generations by as much as 36%. However, many of us are reticent with parting with that cash – especially when it’s for investments, due to the problems the previous generation faced.

Many of us are already making future financial plans that typically involve pensions, house deposits, 401ks and the like. However, you could be making a good bit of extra money from investing and it doesn’t cost that much to get into. Here are some quick and cheap ways to start building up investments and small investment ideas for students.

Small Investment Ideas for Students

Here are 4 quick and small investment ideas for students those that have less than $500 to invest.

1. Pick Index Funds

Index funds are a type of mutual fund that have portfolios constructed to match or track components of a financial index fund. These types of funds provide broad market exposure and are considered safe investments.

Want Free Money?

  • Aspiration: Want to get spotted a $150 for free? Simply sign up for Aspiration, and the free banking app will give you cash for free, you just relax while it gives you $150 just for opening a new debit card. There’s no catch. This bank account is legit and only takes two minutes to sign up for an account.

Don’t know where to start with index funds? All of the index funds below can be invested in, even if you have less than $500.

Best S&P 500 Index Funds for 2021

  • FUSEX: The Fidelity Spartan 500 Index Fund (Expense Ratio: 0.015% | Minimum investment: $0)
  • SWPPX: The Schwab S&P 500 Index Fund (Expense Ratio: 0.02% | Minimum investment: $0)

Best Total Market-Based Index Funds for 2021

  • SWTSX: The Schwab Total Stock Market Index Fund (Expense Ratio: 0.03% | Minimum investment: $0)

Strongest Aggressive Level Index Funds for 2021

  • FNCMX: The Fidelity NASDAQ Composite Index Fund (Expense Ratio: 0.3% | Minimum investment: $0)

Mutual funds or index funds are a great choice because instead of owning just one stock you can diversify and might own a few hundred — and it is a great approach for investing long term.

2. Invest in Private Real Estate Deals with Only $500

Wouldn’t it be great if you could invest in commercial real estate and apartments without dealing with all the hassle of buying, improving, and re-selling real estate?

You don’t have to be a millionaire to invest in these types of properties. You can now invest in large-scale real estate for as little as $500 with Fundrise.


Through their real estate investment products, investors earned an average of 8 – 11 percent on their money last year, and all without painting a wall or dealing with unruly tenants.

There is a reason why they currently have over 200,000+ users, this app really pays you!

If you’re interested, I recommend you sign up for more information from Fundrise by clicking here.

Fundrise - Invest in Real Estate with Only $500

With Fundrise, you can invest your money in a portfolio filled with real estate investments with only $500. Fundrise's goal is to build the best real estate investing experience and offers a 90-day money back guarantee, making real estate a smart choice for any investor’s portfolio.


3. Consider Micro Investing Apps

There are micro investing apps available that offer the facility to ‘round-up’ your purchases – that is, save the remaining few cents to make up a dollar on your card purchases – and invest them for you.

Taking little to no commissions and acting as a type of fund manager, these investing apps allow you to customize the level of risk you want to engage with.

Essentially an investment piggy bank, they provide a way to literally turn your pocket shrapnel into sustainable investments, little by little.

One of the most popular apps that do this round up is Acorns (they are also offering a $5 sign up bonus here).

Acorns fees are $1 per month for all accounts with a balance under $5,000 and .25% of the balance per year on accounts over $5,000. Compared to traditional management, mutual funds, and DIY ETFs, this fee is incredibly low.

Tip: If you’re a student or alumni that still has access to your universities .edu email address, you can sign up for the app using your .edu email address and use the app for free without any monthly fees.

If you are interested in investing your spare change, I recommend you learn more from Acorns here.

4. Invest in Individual Stocks

It’s a common misconception that when people hear about investing they believe that they need “a ton of money” in order to invest when actually the opposite is true.

Games That Pay You To Play - Yes, We're Serious

These 3 apps will PAY YOU to play games on your mobile device:

  1. Blackout Bingo - You can download this app and start getting cash rewards for playing bingo.
  2. Solitaire Cube - Earning money by playing games on your phone sounds like a dream. But this app really pays you for playing solitaire with cash rewards.
  3. Pool Payday - Earn up to $50 per month playing billiards with one of the highest-paying gaming apps on the web.

You don’t need millions of dollars or even tens of thousands of dollars in order to begin investing in individual stocks like Apple or Microsoft.

The best time to start investing is when you are just starting out with modest savings. The reason for this is the magic of compound interest.

Compound interest is when you earn money on a deposit (a percentage that varies depending on the type of account), and then you earn more interest on that interest from the initial deposit, and then this process keeps continuing for 10, 20 or 30 years until your money has greatly increased in value! 

Example of compound interest: You invest $1,000 as an initial deposit into an account that pays a 6% interest rate (slightly lower than the average of the stock market), and then you deposit $300/month (About 10% of $50k/year salary). After 10 years you would have $50k, then $141k after 20 years and $307k after 30 years.

And this is even without increasing your savings relative to your rising salary!

The best part is that you can start doing this right now by using investing apps that allow you to invest in individual stocks:

App Rating CommissionsLearn More
robinhood logo



On Robinhood's website

M1 finance



On M1 Finance's website




On Fundrise's website




On Public's website

webull logo



On Webull's website

5. P2P Lending

Peer to peer (P2P) lending is part of a new wave of holistic banking and finance trends that emphasizes fair lending based on a community of creditors creating a fund from which the lenders can make money, with the interest paid to go into the pocket of the peer to peer lenders.

This is a fairly low-risk venture given the protections offered by the financial conduct regulators and can be bought into, in many ethical and sustainable P2P companies, with low rates of the initial investment. To boot, you can feel like you’re doing something good by offering an ethical and holistic approach to lending, as opposed to the predatory nature of some banks and small businesses.

6. Precious Metals and Commodities

The benefit of investing in metals such as gold and silver is that you can secure your assets in a relatively future-proof manner. The price of gold and silver stays constant, and institutions like the Federal Reserve are anchored to that gold.

Essentially, if your currency were to crash, you’d have something that’s worth something and will probably go up in price.

7. Start a Business

Did you know that you can actually start a business with no money? The thing is, you don’t always need a rich uncle or to have a bank account filled with cash to start a business. It just might be that you lack creativity — because there are creative ways that you can finance your business. If you already have a business idea — then you have already gotten through the most challenging part.

If you are still worried about how you can start a business with literally zero funds, here are a few ideas to help start a business with no money.


Investment can sound scary given how the previous generation lost a good chunk of it.

However, millennials and students are saving better than ever before and have the income to get involved.

If you want to try and build a nest egg, but don’t want to shed all of your cash, consider these low-risk small investment ideas for students.


Want Free Money?

Simply sign up for Aspiration, and the free banking app will give you cash for free, you just relax while it gives you $100 just for opening a new debit card. There’s no catch. This bank account is legit and only takes two minutes to sign up for an account.

Learn more

The Best Apps to Save You Real Money

We are on our phone a lot, right? Wouldn't it make sense to save money with the best money saving apps?

AppAt a glancedownload
Get a $100 bonus at Aspiration when you open and fund an account with $10 or more. Then use your Aspiration debit card to make at least $1,000 worth of cumulative transactions within 60 days of account opening.
Open a new account in the next 24 hours and you could get up to $200 in free stock.
Truebill reviewTruebill
This free app delivers on its promise to save you money effortlessly. You can use it to lower your bills, cancel unwanted subscriptions and bill negotiations.

About the author

Brian Meiggs
Brian Meiggs
Brian Meiggs is a personal finance expert, and the founder of My Millennial Guide, a personal finance site helping you put more money in your pocket. He helps millennials follow the smart money in order to increase their earning potential and start building wealth for the the future. He regularly writes about side hustles, investing, and general personal finance topics aimed to help anyone earn more, pay off debt, and reach financial freedom. He has been quoted as a top personal finance blogger in major publications including Yahoo! Finance, NASDAQ, Discover, MSN Money and more.


  1. Thanks for making this post. I am not a fan of precious metal commodities but I am a big fan of peer to peer lending.

    I think it’s important for someone to do their research on how notes work in p2p before investing. There is a lot of information out there about different strategies for investing in p2p so find one and invest a little money and enjoy the journey.


Please enter your comment!
Please enter your name here

On a similar note...

Explore More On

7 Best Bank Bonuses and Promotions of April 2021

aspiration★★★★★This Company Will Give You $100 for Opening a Free Account
Boost your savings and earn up to 1.00% APY interest on your savings. Get up to 10% cash back on your purchases. Get $100 bonus when you spend your first $1,000 with your new Aspiration Plus Card.
personal capital★★★★★
The First and Only Interest Earning Crypto Account
Receive up to $250 Bitcoin bonus when you make qualifying deposits over the first 30 days. Receive up to 8.6% annually on your crypto. Join the most trusted financial services for crypto investors on the market.
personal capital★★★★★Get Up $200 in Free Stock for Joining
Commission-free stock, ETF and options trades. Get a free stock worth up to $200 when joining (must complete application). Simple, easy to use investor platform with no account minimums.
sofi★★★★★All-In-One Investing That's Easy to Use
Tired of Robinhood? Invest in stocks, ETFs, crypto, or automated investing in all one app. No commissions for stocks and ETFs. Complimentary access to SoFi Financial Planners.
personal capital★★★★★The Smart and Free Way to Manage Your Money
Take control of your finances with the perfect union of technology and highly personalized service. Get access to free online financial tools, including retirement planner, investment checkup, net worth calculator and more. Digital-first wealth management advisor with 24,000 clients in 50 states.
blooom★★★★★401K and IRA Management
Start your free 401k and IRA management now. Find and reduce hidden fees. Improve your diversification.
cit★★★★★Enjoy the Benefits of a CIT Bank Money Market Account
A CIT Bank Money Market Account helps you get more from your savings with interest rates for maximum growth. Earn over 7x the national average with high-interest rates. It now pays to open a money market account with CIT Bank.
My Millennial Guide