Investment Tips on Instagram: Why Flashy Advice Can Be Risky for Students

Have you ever scrolled past Instagram posts claiming you can retire at 30 if you just follow a few steps? Feels tempting, right?

Many of us may have been misled by the vast amount of information like this which is being circulated widely across the internet.

I recently came across a tweet from a student that highlighted an inspiring example:

"A business prodigy, Buffett bought his first stock at just 11 years old. As a teenager, he used his savings to buy and install pinball machines in local shops."

Stories like these can be inspiring but they can also create pressure. Just because someone else started early doesn’t mean you should rush in without first understanding how money works, especially the psychology behind it.

Just because it worked for someone at an early age, you should not take the decision of investing at a very young age unless and until you have understood the psychology of money as well as a few more important tips from experts integrated with your own intelligence before starting your course of action as an investor. Additionally If you are not aware of the psychology of money, then you can check out this blog on the same to boost your understanding before reading this blog here.

For a better understanding, put excitement aside and calm your nerves and understand these four crucial steps before making any investment related decision.

1. Start With a Personal Financial Roadmap
   

Before you make any investment decision, sit down and take an honest look at your entire financial situation - especially if you’ve never made a financial plan before.

The first step to successful investing is figuring out your goals and risk tolerance – either on your own or with the help of a financial professional. There is no guarantee that you’ll make money from your investments.But if you develop a good understanding before investing it will help you to predict the loss and prevent the decision from being taken.

Financial road map is just like planning a study schedule before exams which ensures systematic preparation. A financial road map guides your investing decisions, helping you reach your long-term financial goals effectively. Begin by clearly outlining your current financial situation. Understand your income (scholarships, allowances, part-time jobs) and expenses (rent, groceries, entertainment). Next, set specific financial goals, categorising them as short-term (buying a laptop), mid-term (paying off student loans), and long-term (purchasing a home, retirement fund). Such clarity allows you to decide precisely how much to invest, how frequently, and in what assets, making your investing journey structured, purposeful, and successful.

2. Evaluate your comfort zone in taking on risk.

All investments involve some degree of risk. If you intend to purchase securities - such as stocks, bonds, or mutual funds - it's important that you understand before you invest that you could lose some or all of your money. Unlike fixed deposits the money you invest in securities typically is not insured by any entity.You could lose your principal, which is the amount you've invested.As a result, it is advisable to everyone to evaluate their risk before investing.

3. Develop Your Own Research Methodology with the Help of Expert Advice

A good investment decision involves informed decisions based on careful analysis and continuous learning.It’s fine to take advice but make sure you understand it and check if it aligns with your goals and instincts before acting on it.

For students, this means regularly reading reputable financial news, tracking market trends, and understanding fundamental investment metrics. Follow financial podcasts, attend webinars. Webinars provide practical understanding about a given topic within a short time and If you have not watched any of our webinars you can watch them here.

Initially it is difficult for students to update themselves with the latest trends in investments but over time, this disciplined approach will help you to validate professional advice effectively, build your analytical skills, and eventually make confident, independent investment decisions.

4. Avoid Circumstances That Can Lead to Fraud

As students will be in their beginning phase while investing money and they develop the tendency for quick profits, they often become vulnerable targets for financial fraud.

For example, scams disguised as crypto investment platforms or “get-rich-quick” courses often target students on social media with flashy returns and limited-time offers.

Scammers prey upon the enthusiasm, limited financial experience, and naivety of first-time investors. Thus, it's essential to cultivate awareness and vigilance from the beginning, this is possible only when the students educate themselves about everything related to investment.

The total amount involved in digital financial frauds reached ₹4,245 crore in the first 10 months (April–January) of 2024-25, involving 2.4 million incidents. This is one such statistic where people fall prey to all these scams due to lack of awareness on where their money is going.

Always verify investment offers, scrutinize the legitimacy of brokers and financial platforms, and avoid unrealistic promises of guaranteed high returns. Educating yourself through legitimate financial literacy resources and seeking advice from certified financial advisors can help you recognize red flags early.

Conclusion:

On a closing note, starting an investment journey during your student years presents an excellent opportunity to build a solid financial foundation. Start with a solid financial roadmap, understand your comfort with risk, stay alert for scams, and build your investment knowledge over time. Investing isn’t about copying others, it’s about learning, planning, and acting wisely.

To learn more about the different types of mutual funds and smart Investing as a student, keep reading the series of blogs posted under Invest As A Student to gain practical understanding about the different aspects of investing.

Additionally, if you're interested in knowing more such topics in financial literacy then we have crafted money matters as a standalone program, or if you're seeking a well-designed and structured financial literacy course, then KCITE has a structured Financial literacy program to develop the learners into Financially literate individuals.

References:

1. https://especia.co.in/post/financial-planning-concepts/

2. https://www.business-standard.com/finance/news/digital-financial-frauds-touch-rs-4-245-crore-in-the-apr-jan-period-of-fy25-125032001214_1.html

3. https://www.finra.org/investors/investing/investing-basics