Disclaimer: The information provided in this blog is for educational purposes only and should not be considered financial, investment, or legal advice. Payactiv is not a licensed broker-dealer or investment advisor. Please consult with a qualified financial professional before making any investment decisions.

Financial Literacy Month is a great time to take a fresh look at your finances and explore how to grow your money responsibly. One way many people build long-term wealth is through investing. If you’re new to investing or feel limited by how much you can start with, you’re not alone—and you can still get started.

Here’s a look at common investment options and how to build a basic understanding to support your long-term financial wellbeing.

Why Investing Education Matters

Learning about investing can help you plan for the future by making your money work harder over time. Even small contributions to a diversified investment account, compounded over years, can result in significant growth.

Understanding compound interest—the process where interest earns interest—is a key part of why investing early can be beneficial. The earlier you begin, the longer your money has to grow.

If you want to build basic budgeting skills before considering investment options, check out our blog on 9 Simple Budgeting Tips for Beginners to help you get started.

Start with Small, Consistent Contributions

You don’t need a large amount of money to begin learning about investing. Today’s technology platforms allow you to explore investment options with small amounts, sometimes under $10.

While Payactiv does not provide or manage investment accounts, many financial service providers offer tools that allow for fractional investing—purchasing a portion of a share of stock or fund. These tools can provide access to markets previously seen as inaccessible.

As always, it’s important to verify the legitimacy and licensing of any financial services provider you consider working with.

Common Types of Investments (Educational Overview)

This section is provided for informational purposes only. Any investment decision should be made in consultation with a registered financial advisor and in accordance with your risk tolerance, time horizon, and financial goals.

Exchange-Traded Funds (ETFs) & Mutual Funds

• What They Are: Bundles of different assets like stocks or bonds.
  
• Why People Use Them: Diversification and lower risk than investing in single stocks.
  
• How to Learn More: Look into well-known fund types like S&P 500 index funds. Public sources like the SEC’s Investor.gov can provide reliable educational material.
  

Stocks

• What They Are: Shares of ownership in a public company.
  
• Why People Use Them: Potential for higher returns—but also higher risk.
  
• How to Learn More: Research financial literacy resources that help evaluate stock fundamentals and understand volatility.
  

Bonds

• What They Are: Interest-earning loans to governments or corporations.
  
• Why People Use Them: Typically lower risk and lower returns than stocks.
  
• How to Learn More: Resources like FINRA.org offer unbiased bond education.
  

Note on Cryptocurrency: Digital currencies are speculative and not suitable for everyone. The U.S. Securities and Exchange Commission (SEC) considers some cryptocurrencies to be highly volatile and recommends that investors only risk money they can afford to lose. Learn more on Investor.gov.

Building an Investment Strategy (For Education Only)

Creating a long-term plan is key to building financial wellness. Be clear about your financial goals and understand the difference between short-term needs and long-term growth.

Goal Timelines

• Short-Term (1–3 years): Emergency funds or purchases may be better held in a high-yield savings account.
  
• Mid-Term (3–10 years): Some people consider conservative ETFs or blended portfolios—but only after consulting a qualified advisor.
  
• Long-Term (10+ years): Retirement-focused investing may include tax-advantaged accounts and growth-oriented strategies.
  

Diversification and Rebalancing

Diversification can reduce risk by spreading your money across multiple investment types. Rebalancing means adjusting your investment mix over time to stay aligned with your goals.

Tax-Advantaged Accounts: 401(k)s, IRAs, and More

If your employer offers a 401(k) plan with a match, that may be a beneficial way to begin investing in a tax-efficient manner. If not, individuals may be eligible to open an IRA or Roth IRA depending on their income level and filing status. Always consult with a tax professional or financial advisor for guidance tailored to your circumstances.

Using Technology to Learn About Investing

Many platforms offer beginner-friendly educational content, including:

• Robo-Advisors: Automated tools that provide portfolio guidance based on your risk profile.
  
• Mobile Apps: Some apps offer fractional investing and simulated trading tools to help you learn without financial risk.
  

Reminder: Payactiv does not offer investment products or endorse any specific financial platform or app.

Stay Curious, Stay Compliant

Financial markets and regulations are always evolving. Stay informed by following trusted government websites like:

• SEC.gov
  
• FINRA.org
  
• CFPB.gov
  

These offer accurate, non-commercial guidance to help you avoid scams and make informed decisions.

Final Thoughts

Investing can seem overwhelming, especially if you’re just starting. But by building your knowledge, setting goals, and staying cautious of scams or risky ventures, you can grow your confidence and financial resilience.

Start small, stay informed, and always seek advice from licensed professionals before investing your money.

This blog is provided for general educational and informational purposes only. It is not intended to provide investment, legal, tax, or financial advice, and should not be construed as such. You should consult a licensed financial advisor or other qualified professionals regarding your specific financial situation.

Payactiv does not offer or facilitate the purchase or sale of any securities, investment products, or financial instruments. Payactiv is not a registered broker-dealer, investment advisor, or fiduciary under federal securities laws.

Mentioned investment platforms, mobile applications, or services are referenced solely for educational purposes. Payactiv does not endorse, sponsor, or receive compensation from any of the third-party investment providers or applications mentioned in this blog.

All investing involves risk, including the potential loss of principal. There is no guarantee that any investment strategy will be successful. Historical performance of investment vehicles is not indicative of future performance.

Tax treatment of investment accounts and gains varies based on individual circumstances and current IRS regulations. You should consult with a tax professional before making any decisions that may impact your tax liability.

Savings products referenced, such as emergency funds or high-yield savings accounts, are not the same as investments. Investment accounts may not be FDIC-insured and are subject to market risk. Be sure to distinguish between the two when evaluating your financial options.

All content provided on Payactiv.com/financial-learning/ is for informational purposes only. Payactiv makes no representations as to the accuracy or completeness of any information on this site or found by following any link from this site. Payactiv will not be liable for any errors or omissions in this information nor for the availability of this information. Payactiv will not be liable for any losses, injuries, or damages from the display or use of this information.