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Small Steps for Beginning Investors

February 2022

Barbara O’Neill, Ph.D., CFP®
Distinguished Professor and Extension Financial Management Specialist Emeritus
Rutgers Cooperative Extension Beginning Investors

During the past two years of the COVID-19 pandemic, many people started to invest for the first time. Reasons for this include more time to navigate the process of investing, extra money from stimulus payments, encouragement from friends and family, and the growth of online trading apps.

As a result of these trends, stock ownership among U.S. households increased to 41% of their total financial assets in 2021, an all-time record high! With an increase in investing comes a need for investor education. Below are some time-tested tips for new investors:

Remember, time is as precious an investment resource as money is. Even small amounts of money, with compound interest over time, will grow to significant sums. For additional information for beginning investors, review the Cooperative Extension Investing for Your Future home study course. Module 8 is about investing with small dollar amounts.