What is a primary benefit for students to invest while still in school?

Investing while still in school allows students to take advantage of the power of compounding, which is one of the most significant benefits of investing early. Compounding refers to the process where the money earned on an investment generates additional earnings over time. When students start investing at a young age, even small amounts can grow significantly over time, thanks to interest being calculated on the initial principal as well as on the accumulated interest from previous periods. This means that the earlier an individual begins to invest, the greater the potential market value of their investments when they reach a later stage in life.

While quick returns or high-risk trades might seem appealing, they can also come with significant unpredictability and the potential for financial loss, which is not ideal for a student just starting their financial journey. Additionally, access to exclusive networks can provide support and knowledge, but the fundamental advantage remains the opportunity to build wealth progressively through the benefits of compounding. Therefore, students who invest early are setting themselves up for better financial stability in the future.