Investing in capital markets is a proven strategy for building long-term wealth. Despite an increase in the number of investors over the past decade, participation in capital markets remains low among households with LMI—including college students with LMI. This gap is largely due to significant barriers faced by college students with LMI, including limited exposure to investment options, student debt, and other systemic barriers.  Early investing presents an opportunity to address this issue for the 16.6 million undergraduate students enrolled at academic institutions and those who are recent graduates, providing a fundamental strategy for building long-term wealth. 

In a new area of research, Commonwealth explores the opportunities and challenges faced by college students with LMI embarking on their investment journeys—particularly Black and Latinx college students and recent graduates. This full report highlights several key findings, including bridging the gap between interest and investing as a viable wealth building pathway, and  barriers that prevent students from investing. It also offers areas of opportunity where industry leaders –financial institutions and fintechs, higher education bodies, and government—can address these challenges to help college students build long-term wealth. 

This project is made possible thanks to the generous support of the Wells Fargo Foundation.