Contrary to popular belief, youth is the ideal time to prepare for the future by investing and saving as early as possible. But why is it advantageous to invest at a young age? What are the most interesting investment opportunities for young people? And how can you invest your money at a young age?
In this guide, we will present all the good reasons to invest when you are young, as well as the best investment ideas to prepare for your future starting now.
📢 Why invest when you are young?
Investing when you are young allows you to earn more money. It is a fact that the earlier you invest your money, the more your investments will grow. That’s why investing when you are young is the solution if you want higher returns.
Investing when you are young also helps to combat inflation because money loses value over time. Investing at a young age allows you to acquire assets at a much more affordable price than if you wait a few years.
Another significant advantage of making investments when you are young is that you can work less and earn more money, thus anticipating your retirement. Remember, the earlier you make your investments, the more money they will generate. Investing when you are young allows you to retire earlier because thanks to your investments, you will have earned enough money to meet your future needs.
Finally, it is important to invest your money when you are young because later on, it will be difficult to balance family life, work, and investing. Investing your money when you are young allows you to save time and optimize your returns.
🔎 How to invest your money when you are young?
There are many options available on the market for investing when you are young.
Therefore, we have gathered all the investment alternatives that will help you better understand where to invest when you are young and select the best investment options for young people according to your profile.
✓ Investing in the stock market when you are young is possible!
Most people think that you have to be older to invest your money in the stock market. However, investing in the stock market when you are young is possible and accessible from the age of 18. As a young person, you have the right to two types of stock market investments with distinct characteristics.
It is possible to invest in the stock market with a young PEA. This investment is intended for young people aged 18 to 25 who are fiscally dependent on their parents, and it has the following features:
- A ceiling of €20,000
- A flat tax at 30% for 5 years
- After 5 years, the flat tax amounts to 17.2%
It is also possible to invest your money in the stock market when you are a young minor by opening a securities account (CTO). To do this, you simply need to open the account in the name of one of your parents or start investing in the stock market from the age of 16 with parental authorization.
In general, we recommend waiting until you reach adulthood before investing in the stock market in order to have a better understanding of the market and have all the necessary knowledge before venturing into this risky investment.
But before investing in the stock market, we recommend consulting our comparative guide to choose the best regular securities account according to your profile and needs.
✓ Life insurance: the “Swiss army knife” investment for young people
Life insurance is an excellent way for young people aged 18 to 30 to achieve their medium or long-term goals. Although this savings method is generally associated with people over 50, it offers many advantages for young people.
Indeed, life insurance is a versatile instrument that allows you to build up capital for various projects such as real estate, buying a car, or preparing for retirement. Furthermore, it allows you to multiply and diversify your investments through funds including euros, stocks, bonds, ETFs, REITs, etc.
Investing in life insurance when you are young allows you to have your money available at any time. This investment has no limit, and the taxation becomes attractive after the eighth year.
If you are convinced by life insurance, we recommend consulting our ranking of the best life insurance policies to find the one that best suits your needs.
✓ Investing when you are young with SCPI (Real Estate Investment Trust)
Investing in Real Estate Investment Trusts (SCPI) using credit can be a profitable way for young people to build wealth without having to provide a personal contribution.
Although debt is not synonymous with wealth, this method allows young professionals to gradually repay their debt through regular income. To invest in SCPI on credit, it is important to have a stable employment contract or have good budget management skills. It is also recommended to seek advice from a wealth management advisor, a specialized website, or a mortgage broker to find the best offers on the market that suit your funds. However, this investment choice requires patience to achieve satisfactory returns.
Discover the best SCPIs!
✓ Investing in cryptocurrency when you are young
Investing in cryptocurrency represents an interesting opportunity for young people as it allows them to participate in the booming digital economy and invest in assets with high potential.
Indeed, thanks to their rapid growth potential, cryptocurrencies like Bitcoin and Ethereum have managed to attract the attention of investors worldwide.
For a young person, investing in cryptocurrencies can offer an alternative way to earn money easily and gain valuable financial expertise.
However, it is important to exercise caution and vigilance when investing in this field as it is a relatively volatile investment. Therefore, we recommend consulting professional financial advice and keeping up to date with cryptocurrency market trends. Additionally, choose a secure and user-friendly crypto exchange platform that is suitable for young investors.
The best cryptocurrency platforms are not only intuitive where you can invest in a few steps but also offer educational tools. This is ideal for learning and learning how to invest when you are young.
Discover the best cryptocurrency platforms for young people!
🔝 Best investments for young people: What to invest in when you are young?
As you can see, there are many ways to invest your money when you are young. On the market, there are numerous offers and solutions specifically designed for young people who want to save and invest their money.
Therefore, we have selected two offers that we consider ideal for young people who want to start investing.
✓ Investing when young with Goodvest while respecting the planet
Goodvest is a unique green savings solution based on life insurance that includes units made up of UN-certified sustainable and responsible ETFs (equities or bonds).
This green finance company targets French savers who want to invest their money responsibly and sustainably. Goodvest is the only savings solution that fully complies with the Paris Agreement. All the portfolios offered through life insurance are designed to limit global warming to a maximum of 2°C by 2100, unlike traditional savings products that can reach up to 4°C.
The goal of Goodvest is to allow its clients to save in a simple and responsible way using a mobile application accessible to everyone. It also strives to be a transparent savings solution for young people concerning carbon footprint and fees charged to its clients in France.
By investing at a young age with Goodvest, you can enjoy many benefits, such as:
- Up to €500 offered for any initial deposit or transfer to the Goodvie contract, with an initial payment of €2,000 and the code CONNECTBANQUE.
- A savings solution based on funds that contribute to sustainable development.
- Easily accessible savings through a mobile application, with a minimum initial deposit of €300 and no opening, deposit, withdrawal, or closure fees.
- Full transparency on fees, with a low management fee of 0.90% per year and no hidden fees.
- Performance-oriented and “green” labeled funds offered, as well as personalized portfolios tailored to each type of investor.
- Management overseen by experts, with performances ranging from 5.04% to 14.94% in 2021.
- Availability of your savings within 72 hours.
Get €500 offered here!
✓ Birdee: Ethical and simple investment for young people
Since 2018, Birdee has been a robo-advisor available in France. A robo-advisor is an online platform that uses various algorithms to manage financial products, acting as a financial investment advisor for individuals at an affordable cost, based on their risk profile.
To determine this profile, the client must answer a series of questions, and the robo-advisor then adapts the investments based on the client’s goals, profile, and risk level. For young people, Birdee is the ideal solution to know where to invest their money since Birdee regularly optimizes client investments to improve returns while ensuring the safety of investments.
Birdee relies on the financial experts of BNP Paribas Asset Management, which is also a shareholder of Birdee, to strengthen its investment offer and ensure secure management.
Choosing Birdee to invest your money at a young age means benefiting from advantages such as:
- Exclusive ConnectBanque offer: €100 offered for an initial deposit of at least €1,000 with the promo code “CONNECT100” until 31/03/23.
- Quick and 100% online registration.
- Intuitive and user-friendly application.
- Quality customer service, responsive and attentive.
- Investment accessible to everyone starting from €50.
- Fixed management fees of up to a maximum of 1% per year.
- No entry, exit, switching, or management mandate fees.
- 5 portfolio profiles available for personalized young investment.
- Investment information and portfolio performance reports.
- Only 0.3% Total Expense Ratio (TER) deducted automatically from your portfolio returns.
Get €100 offered here!
📌 Before investing, remember to save in your youth with bank savings accounts
Bank savings accounts offered by banks allow young people to invest and save money from an early age. Banks offer savings accounts tailored to young people’s profiles with flexible conditions: no opening, fiscal, management, or closure fees.
It should also be noted that savings accounts are completely free and adapted to the financial profile of young people with low income. On the market, there are three types of bank savings accounts, each with distinct advantages:
- The youth savings account is for young people aged 12 to 25 and is available in all banks. A young person can only have one youth savings account, and they must be based in metropolitan France or an overseas department. The youth savings account allows young people to save for their future projects.
- The Livret A is available to both minors and adults, regardless of age, with a maximum deposit of €22,950. Investing your money when you are young in a Livret A allows you to benefit from a remunerated investment of 3% (since February 1, 2023), with interest paid twice a month.
- The Livret d’Épargne Populaire (LEP) is designed for young people who wish to invest and make a profit with a minimum deposit of €30. Having an LEP allows you to receive interest paid twice a month that is completely exempt from taxes and social security contributions. Since February 1, 2023, the LEP interest rate is 6.1%, and the maximum limit is €7,700.
- The PEL (Plan d’Épargne Logement) allows young people to save money for the purpose of purchasing real estate or financing renovations. With no risk and regulated, the PEL is an investment method suitable for young people who want to invest in real estate over a period of 4 to 15 years.
Please note that if you choose a PEL, your money cannot be withdrawn before 4 years or your account will be closed. Investing when you are young with a PEL allows you to benefit from preferential mortgage interest rates and an interest rate of approximately 1% gross.
To find out more about suitable savings solutions, do not hesitate to consult our guide on youth savings to get ideas.
Discover the youth savings guide here!
