Investing 101: An International Student's Guide to Building Wealth in the U.S.

Hey there!

If you’re an international student in the U.S. and new to investing, this guide is your starting point. Investing isn’t just about stocks - it’s about making your money grow instead of letting it sit idle. The earlier you start, the more it compounds.

In this guide, you’ll learn when to invest if you have loans, how to use HYSAs, which platforms to start with, and how to plan for long-term savings as someone on an F-1 visa.

The goal: help you build financial confidence and grow your money with simple, practical steps.

Should You Invest If You Have Loans?

If you’re paying off student loans, car loans, or a mortgage, the key question is your interest rate.

• If your debt has high interest (above 7%), focus on paying that off first.

• If it’s low interest, you can invest gradually while repaying.

Safe investments often return 4-6% per year, so if your loan rate is lower, you can still grow your money without slowing repayment. But - always build an emergency fund first (3-6 months of expenses) before investing.

What Is Investing Beyond Stocks?

Investing doesn’t always mean buying risky individual stocks.

There are several safe, beginner-friendly ways to grow your money without taking on big risk:

• High-Yield Savings Accounts (HYSA): One of the simplest and safest options for passive income. These accounts earn 10-20× more interest than regular savings accounts and are federally insured (FDIC) up to $250,000, meaning your balance is protected.

• Index Funds like the S&P 500: Instead of investing in one company, you invest in hundreds of top U.S. companies at once. This spreads (or “diversifies”) your risk and has historically returned around 7-10% per year over the long term - making it one of the safest ways to build wealth gradually.

Together, these options help you balance safety and growth:

• Use HYSA for short-term goals and emergency funds.

• Use index funds like the S&P 500 for long-term growth and wealth building.

Even small amounts invested consistently can add up - and you’ll start earning while you learn.

Are you on an F-1/H-1B Visa? FIll out this quick survey so we can send you tailored content based on where you’re at in your international student journey!

Choosing the Right Investment Platform

Once you’re ready to invest beyond savings, platforms like Vanguard, Robinhood, M1 Finance, and Fidelity are great starting points.

Here’s how they compare:

Documents needed: Most platforms accept an SSN, and some allow ITINs or even just a passport + U.S. address for account setup. Always check eligibility before signing up.

What To Learn Before You Start

Before you invest, take time to learn the basics:

• How U.S. taxes work on dividends and capital gains

• What ETFs, mutual funds, index funds and bonds are

• How compound interest grows your investments

• Why day trading is risky and can even violate visa rules

You don’t need to master everything - just start small.

Retirement Planning for International Students

If you’re working in the U.S. on OPT, STEM OPT, or H-1B, your employer may offer employer-sponsored retirement plans like a 401(k).

401(k):

• Many employers match 3-6% of your contribution - free money!

• Example: On a $60,000 salary, contributing 4% ($2,400) could earn another $2,400 match from your employer for a total of $4,800.

• Your contributions grow tax-deferred, meaning you don’t pay taxes until retirement!

Roth IRA:

• Contributions grow tax-free, and qualified withdrawals are also tax-free.

• You can withdraw your contributions anytime without penalty, but will have to wait till you’re 59+ y/o to access the interest earned.

• Great for long-term savings - especially if you plan to stay in the U.S.

Final Thoughts

If all of this feels new or overwhelming, that’s completely okay - everyone starts somewhere. What matters is that you’re learning and taking the first step, and that already puts you ahead of most students.

You don’t need to be an expert or invest huge amounts to begin. With a little curiosity, consistency, and the right tools, you can start small and let your money grow over time. Explore a few beginner-friendly videos, try out simple platforms, and ease into it at your own pace. Your future self will be glad you started now.

Best,
The Roam Growth Team 🧡