Ten things to sort out before you invest your first £100. It takes about ten minutes to read, and each step links to a fuller guide if you want the detail. Bookmark this page and come back to it.
Step 1: Build a small emergency fund first
Put £500 to £1,000 in an easy-access savings account before you invest. If something unexpected comes up, you won’t be forced to sell investments when prices are down.
Step 2: Clear expensive debt
Pay off credit card balances and any overdraft beyond your interest-free limit before investing. The interest you pay on those is almost certainly higher than the return you can reasonably expect from investing.
Step 3: Understand your student loan
Your student loan isn’t like normal debt. You repay 9% of what you earn above the threshold (currently £29,385 a year for Plan 2, £25,000 for Plan 5), and it’s taken automatically through payroll. Paying it off early is rarely the priority. Check your plan on gov.uk.
Step 4: Use a Stocks and Shares ISA
An ISA lets you invest up to £20,000 a tax year with no tax on gains or dividends. For most students it’s the obvious place to start. See our Stocks and Shares ISA guide.
Step 5: Check the platform is FCA-authorised
Before opening an account, search the platform on the FCA register. If an authorised platform fails, the FSCS can protect up to £85,000 of your assets. That protection doesn’t cover your investments simply falling in value.
Step 6: Compare the fees
Look at two costs: the platform fee and the fund’s ongoing charge. Differences that look tiny in percentage terms add up over years of compounding.
Step 7: Start with a diversified index fund
A global index fund spreads your money across thousands of companies in one product, usually for a low annual charge. Over long periods, most actively managed funds have historically struggled to beat their index after fees, and picking individual shares adds extra risk.
Step 8: Automate a small monthly amount
Set up a monthly payment on the day your money comes in, even if it’s only £10 or £25. Starting and staying consistent matters more than the amount.
Step 9: Only invest money you won’t need for 5+ years
Investments can fall in value and take years to recover. Don’t check your portfolio daily: reviewing every six to twelve months helps you avoid panic-selling.
Step 10: Avoid get-rich-quick products
Stay away from CFDs and leveraged trading, social media tips and anyone promising guaranteed returns. For free, impartial guidance, use MoneyHelper, which is backed by the government.
This checklist is general information, not financial advice. Investments can go down as well as up and you may get back less than you put in. Tax rules depend on your circumstances and can change. Student Invest Guide is not authorised or regulated by the FCA.
Ready for the detail? Start with how to start investing as a student.