Investing as a student makes sense as soon as you have an emergency fund and can regularly set aside a small amount. A few euros a month are enough to start. What matters is an understanding of risk and a suitable time horizon: money you will need in the coming years belongs in an instant-access savings account (Tagesgeldkonto). Only amounts that can stay invested for a long time belong in securities.
Any investment carries the risk of losses. Past performance says nothing about the future.
The most important points at a glance
- First the emergency fund in an instant-access savings account, then investing. More on this under organising your finances during your studies (in German).
- Securities fluctuate in value. You may lose part of the money you invest, temporarily or permanently.
- Broadly diversified funds and ETFs are usually more suitable for beginners than individual shares.
- If you receive BAföG, keep the asset allowance in view: up to age 29 it is €15,000.
When is the right time for investing as a student?
The right time has come when three things coincide: you know your fixed monthly costs, you have a reserve for the unexpected, and you have a goal with a timeline. Without a reserve, the next larger bill forces you to sell securities, possibly just when prices are low.
So first decide what the money is for. How to plan goals with an amount and a date is described in our article on savings goals for students (in German). As a rule of thumb, the shorter the period until you spend the money, the safer and more accessible the investment should be.
How much money do you need to invest?
You do not need large sums to get started. Many brokers and banks offer savings plans with small monthly amounts. The exact minimum differs between providers, so compare them before you open an account.
Regularity matters more than the amount. An amount you can also raise in a tight month is better than an ambitious instalment that you abandon after a short time. If saving in an ETF (in German) is an option for you, the linked article explains how the savings plan works.
Which investment forms suit students?
The choice ranges from safe accounts to risky individual shares. The table classifies common forms by availability and price risk.
| Investment form | Availability | Price fluctuation | Suitable for |
|---|---|---|---|
| Instant-access savings account | At any time | No price fluctuation, interest rates can change | Emergency fund, short-term goals |
| Fixed-term deposit | Only after the term ends | No price fluctuation, interest fixed for the term | Money not needed for a fixed period |
| Equity funds and ETFs | Tradable on every trading day | Medium to high, depending on the fund | Long-term goals of several years |
| Individual shares | Tradable on every trading day | High, total loss possible | Only small amounts you can afford to lose |
| Robo-advisor | Usually on every trading day | Depends on the chosen risk level | For those who want to hand over the selection |
Tradable on every trading day does not mean you sell at your desired price. If the price has fallen, you realise the loss. That is why only money you do not need for the foreseeable future belongs in securities.
What are ETFs, and why are they often recommended to beginners?
An ETF is an exchange-traded fund that replicates an index, such as the MSCI World with companies from developed countries. With one unit you hold a stake in many companies at once. This spreads the risk, because the failure of a single company hardly moves the value of the fund.
In addition, ongoing costs are low, because no fund manager selects individual shares. This does not protect you from market fluctuations: if the entire market falls, the ETF falls too. We do not give a recommendation for a specific product here. When comparing, pay attention to the index, the costs and the size of the fund.
Why are individual shares riskier for beginners?
With an individual share, your result depends on one company. A scandal, a change of management or a cut in forecasts can push the price down sharply. To spread the risk, you would need many different securities, which is hard to achieve with small amounts.
Selecting shares also takes time: reading annual reports, understanding industries, watching prices. If you still find individual shares appealing, limit the amount to a small part of your investment money whose loss you can bear.
How big is the risk, and how do you deal with it?
With securities, risk above all means that the value fluctuates. Example: you invest €1,000, and the price falls by 20%. Your portfolio then shows €800. If you sell, the loss is real. If you keep the investment, it may recover, but there is no guarantee of this.
Three principles help you deal with this:
- Only invest money that you do not need for a long period.
- Spread widely instead of relying on a single company or country.
- Decide in advance how you will react to a price fall. Those who decide only at the moment of the crash often sell at the wrong time.
Inflation also plays a role. Example with an assumed price increase of 2% a year: with €1,000 you can buy goods worth about €980 of today’s value after one year. Interest on the instant-access account can offset this, but it does not have to.
How do you open a securities account as a student?
A securities account is the account on which your securities are held. You open it online with a broker or a bank. To do so, you complete an application and verify your identity by video identification (Video-Ident) or postal identification (Post-Ident). After that you can pay in money and set up your first savings plan or purchase.
Also set up an exemption order with the provider, so that investment income remains tax-free up to the saver’s allowance (Sparer-Pauschbetrag). You will find the current amount from your provider or the tax office.
What should you look for when choosing a broker or bank?
Providers differ mainly in costs. As a student with small amounts, fixed fees weigh more heavily than with large sums.
- Costs: Check custody fees, order fees and the fees for savings plans. Calculate them in euros per year.
- Range: Are the ETFs or funds you have chosen available as a savings plan?
- Regulation: Check whether the provider is supervised by the BaFin (Federal Financial Supervisory Authority).
- Usability: The app and website should be easy for you to understand, so that you avoid errors when placing orders.
- Minimum investment: Some providers require a minimum sum for the account or savings plan.
This is not about advice on specific providers or products. Compare the conditions yourself and read the price and service lists.
What applies to BAföG and pensions?
If you receive BAföG, keep an eye on your assets. A securities account counts towards them. Up to age 29, €15,000 remains exempt, and from age 30, €45,000. Parents’ assets do not count. The rules are set out in the BAföG FAQ of the Studierendenwerke.
On pensions: your studies count as a credited period in statutory pension insurance from your 17th birthday, without you paying contributions. School and study periods together are credited for up to eight years at most. How this works in detail is explained in our article on pension insurance during your studies (in German) and by German Pension Insurance.
How do you stay invested in the long term?
Automate the savings plan, so that you do not have to decide again every month. Do not check your portfolio daily: prices fluctuate sharply in the short term, and frequent checking tempts you into hasty decisions.
Once a quarter, check whether the amount and goal still fit your situation. If you earn more, you can raise the instalment. If money becomes tight, pause the savings plan before you take on debt. Further basics on starting with small amounts are in our article on building wealth during your studies (in German).
Frequently asked questions
How can students invest with little money?
With a savings plan into a broadly diversified fund or ETF. You set a fixed small amount that is debited every month. Check the provider’s costs in advance and whether it offers your chosen fund as a savings plan. Only start once your emergency fund is in place and the amount is manageable even in tight months.
Is investing as a student worthwhile at all?
That depends on your goal and your time horizon. For money you need within one to two years, an instant-access savings account is more suitable. For goals many years away, securities can make sense if you can bear price fluctuations. There are no guarantees, and a loss is possible.
Do I need a securities account to invest?
Yes, for securities such as shares, funds and ETFs you need a securities account. You open it online with a broker or a bank and verify your identity by video identification or postal identification. Instant-access and fixed-term deposits, on the other hand, run through a normal account and do not require a securities account.
Does my securities account count as assets for BAföG?
Yes, securities count towards the assets that are taken into account. Up to age 29 the allowance is €15,000, and from age 30 it is €45,000. If your total assets exceed this, the amount above it is offset against your BAföG entitlement. If in doubt, ask the responsible office for training support.
What you should do now
- Set up an emergency fund in an instant-access savings account and clarify your monthly savings rate.
- Define a goal with an amount and a date, for example with the help of savings goals for students (in German).
- Compare brokers and banks by costs, range and regulation.
- Open a securities account, set up an exemption order and start with a small savings plan.
- If you receive BAföG, check the asset allowance, and review your plan once a quarter.
Related articles
- Building wealth during your studies: how to start with small amounts (in German)
- ETF savings plan during your studies: how it works step by step (in German)
- Pension insurance during your studies: duty, exemption and pension points (in German)
- Organising finances during your studies: account, emergency fund and deadlines (in German)
Last updated: October 2026. This guide is general information, not individual advice, investment advice or a recommendation for specific products. The German version is authoritative.
