Mind Over Money: A Psychology Student’s Guide to Investing

Emilia Kasprzak
May 3
6 min read

I made my first $1,000 in grade 7. I always had the mindset of an entrepreneur—whether it was dog walking or babysitting in elementary school or making money online in my sleep during high school. Making money can be easy—but actually keeping it and making it work for you is what people struggle with.

Psych students know the importance of mindset. We study self-regulation, discipline, growth mindsets, and cognitive distortions. Yet, many of us haven’t been taught one of the most essential life skills: how to invest.

On a recent episode of the Enriched Mindset Podcast, Dr. John Lee and I got real about what it takes to start investing as a student. It wasn’t some high-level finance jargon-filled conversation—it was a personal, honest, and psychology-informed conversation on money and mindset. Whether you’re thinking about building your first portfolio or just wondering how to stretch your savings between Uber Eats and your next tuition payment, this guide is for you.

Why Should You Even Invest?

If you’re a student, you might be thinking, “I’ll invest when I have real money.” But waiting too long is a trap. The truth is, the earlier you start—even with $25 a month—the more time your money has to grow thanks to compound interest. Time is your biggest advantage.

Let’s break it down with the S&P 500, which has historically returned around 11% annually:

If you start investing just $25 a month at age 20, and earn 11% annual returns, by the time you’re 40, you’ll have around $21,600—even though you only contributed $6,000.
If you invest $200 a month starting at age 20, under the same conditions, you’d have over $172,700 by the time you’re 40. That’s the power of compound growth when you give your money time to work.
But if you wait until age 30 to start investing $200/month, you’d only have around $62,000 by age 40. That’s over $110,000 less, simply because you started ten years later.

“You’re putting in a little bit of work now, but the payoff is just incredible.” – Emilia Kasprzak

Investing is also about freedom. Not having to live paycheck to paycheck. Not panicking when your laptop breaks the same week your tuition is due. It’s about building options and peace of mind—something every student could use more of.

But First: Know Your Numbers

Before you can invest a dollar, you need to know what’s coming in, what’s going out, and what’s left.

Ask yourself:

How much money do I actually have in my accounts?
How much am I spending every month—on rent, groceries, transit, nights out?
What could I realistically put toward investing?

Budgeting doesn’t have to be intense. Use the 50/30/20 rule as a guide:

50% for needs (like rent, food, phone bill etc.)
30% for saving/investing
20% for wants (like Sephora, bubble tea etc.)

“If you don’t know where your money’s going, it’s hard to do that 50/30/20. A lot of people say they don’t have money to invest—but they really do. They just haven’t looked at their spending.” – Dr. John Lee

Even if your version starts as 80/10/10, that’s okay. The key is to spend less than you make and build the habit of setting something aside for future you.

Tools that can help:

Free budget templates on Canva or Google Sheets
Apps built into your bank app like TD MySpend etc.
Checking your debit/credit transaction history monthly

“Start with an amount you’re comfortable losing. Then slowly build from there.”– Emilia Kasprzak

How I Started Investing at 16

When I was in grade 10, I started investing through simulations and trial-and-error; I opened a practice account on Webull just to see what it would feel like to make money—and lose it. I wanted to experience the emotional highs of watching a stock go up and the gut-punch of seeing it drop, without risking real cash. It was less about profit and more about understanding my own reactions: Would I panic? Would I double down? Could I sit with uncertainty? There was a lot of psychology involved—self-control, emotional regulation, even confirmation bias when I convinced myself a bad pick would rebound. That practice phase gave me the space to build confidence and learn how my brain responded to risk before I ever invested a real dollar.

Since I was 16 at the time, I couldn’t open my own TFSA yet (you need to be 18!) So, I started investing the money I earned from part-time jobs through my dad’s account. I used it as a placeholder to get familiar with the process, and once I turned 18, I opened my own TFSA and transferred those investments into my personal account. I’ve been maxing it out ever since—and that’s where you can start too. I didn’t have a finance degree—I just had curiosity, a willingness to learn, and a few dollars I was okay parting with. The key wasn’t knowing everything—it was starting anyway and building consistency over time. Investing isn't just about numbers; it’s about knowing yourself, developing discipline, and trusting the process

How to Open a TFSA on Wealthsimple (in under 5 minutes)

Go to Wealthsimple.com or download the Wealthsimple app.
Create an account using your name, email, and SIN (you need to be a Canadian resident and over 18).
Select ‘Tax-Free Savings Account (TFSA)’ from the account options.
Answer a few questions about your risk tolerance and investing goals.
Choose self-directed investing if you want to pick your own ETFs and stocks (like we did!), or automated investing if you want a robo-advisor to handle it.
Connect your bank account to transfer funds.
Deposit your first amount—even $25 is enough to get started!
Search for an ETF like “VFV” or “VGRO” to buy fractional shares, and set up automatic contributions if you want to invest regularly or do a one-time-deposit.

“You don’t need thousands to start. You just need to start. Even a small amount builds momentum.” – Emilia Kasprzak

Pro tip #1: The CRA tracks your TFSA contribution room, but it’s your responsibility to avoid over-contributing. The 2025 contribution room for your TFSA is $7,000, however this amount does carry over so your limit may be larger than that if you haven’t previously invested. Always double-check your limit on your CRA My Account before depositing large amounts.

Pro tip #2: Open your TFSA with a platform that offers commission-free trading—trust me, I learned this the hard way. When I first started, I was trading several times a month and getting charged $9.99 every time I bought shares. Some months, I ended up spending over $50 just on fees. That’s money that could’ve been invested instead. Platforms like Wealthsimple Trade don’t charge commissions, which makes a big difference—especially when you’re starting out with a smaller portfolio.

What Should You Invest In?

While we’re not financial advisors, here’s what worked for us:

ETFs like VFV (S&P 500), VOO, VGRO, or ZQQ (NASDAQ) offer diversified exposure with low fees.
Dividend reinvestment plans (DRIPs) help you automatically reinvest your earnings.
Fractional shares let you invest in big-name companies (like Apple or Amazon) with just a few dollars.

“Just start with a diversified ETF and automate your contributions. It’s so easy now to make passive income.”– Emilia Kasprzak

The Role of Personality in Investing– BIG FIVE

The role of the BIG 5 in investment decisions.

Investing Isn’t Just About Money—It’s About Mindset

This entire conversation really came down to psychology. Do you have the discipline to delay gratification? Can you sit with uncertainty when the market dips? Do you believe in your future self enough to take action now?

“It’s not about picking the perfect stock. It’s about your mindset and your behaviour.”– Dr. John Lee

"If you have a growth mindset, investing is for you.”– Emilia Kasprzak

Whether you’re building your emergency fund, saving for travel, or dreaming of your first home, investing is a tool for empowerment. You don’t need to be a business major or a math genius. You just need to believe you can do it—and take the first step.

If you're still unsure where to begin, try opening a simulation account or talk to someone who’s doing it already. Better yet, start with someone else—having an accountability buddy can make a huge difference. Whether it’s a friend, a sibling, or a classmate, check in with each other, set small goals, and celebrate your wins together.

Don't forget to reward yourself. Behaviourally, reinforcement strengthens habits—so after taking that first step, whether it’s watching your first investing video or opening your TFSA, treat yourself. It could be something small, like a coffee or an extra episode of your favourite show. The point is to link taking action with positive emotion so your brain says, “Hey, let’s do that again.”

Investing isn’t just about money—it’s a practice in self-trust, future planning, and identity. You’re not just saving for something; you’re becoming someone who believes they’re worth saving for. Maybe today’s the day you take that first step.