New Chapter, New Paycheck, New Possibilities: Division of Securities Highlights Smart Saving and Investment Habit Tips for Class of 2026 Graduates

COLUMBUS, Ohio - As Ohio students prepare to graduate from high school and college, start their first jobs, or step into a new career, the Ohio Department of Commerce Division of Securities says there are steps they can take out of the gates to position themselves for a stable, strong and promising financial future.

"Time is one of the most valuable tools young people have when it comes to investing," said Ohio Securities Commissioner Andrea Seidt. "Even small, consistent contributions can grow significantly over the course of a career. Building a portfolio that supports your long-term goals and dreams is easier when you start early, and there are more resources than ever to help you begin."

A recent survey from the Financial Industry Regulatory Authority (FINRA) Investor Education Foundation shows the pace at which new investors are entering the market has declined, in part because of market conditions, technology and generational shifts. For example, the 2021 study found that nearly one in five (21%) respondents had begun investing in the prior two years. Meanwhile, in 2024, that number dropped to less than one in 10 people (8%). The FINRA study also found that younger investors are relying more on social media or so-called 'finfluencers' when making investment decisions which can carry additional risk.

While retirement may seem far away for many of Ohio's youth, the Division encourages first-time investors to keep several principles in mind:

Start with a plan - A clear set of goals, whether saving for emergencies, buying a first car, or thinking ahead to retirement, helps new investors match their money to the right accounts and understand how much risk they can take on. Investing is not a one-size-fits-all solution, and your goals will help determine your plan of action.

Don't leave employer money on the table - Many young workers tend to overlook 401(k) plans or fail to contribute enough in order to be eligible to receive an employer match. The Division stresses that the match is one of the most valuable benefits available to new employee since it allows you to take advantage of employer funds to strengthen your investment portfolio.

Open an IRA if no workplace plan exists - Individual Retirement Accounts, or IRAs, provide you tax advantages and are easy to open through banks, brokers, and even investment apps. For many young adults, a Roth IRA can offer long-term tax benefits that should be explored.

Keep short-term savings protected - Money needed soon, such as for rent, emergencies, or near-term purchases, should remain in safe, easily accessible accounts not tied to market swings. In other words, determine how much you may need in the next three to six months, then put that into a checking or savings account. Any money you earn beyond that can be invested.

Increase contributions over time - When it comes to contributing to a retirement account, contributing something - regardless of size - is vital. Even if young workers start small, gradually raising their savings rate with each raise or job change can lead to significant long-term growth.

Consider seeking the assistance of a professional - Professional financial advice can be helpful and valuable, especially when it comes to the complicated and ever-evolving landscape of financial investments. If this is an unfamiliar area to you, it's important to make sure you work with a trusted and qualified individual who understands your own unique financial goals and will approach their work with that in mind.

The Division licenses broker-dealers, securities salespersons, investment advisers, investment adviser representatives and investment officers operating in Ohio. The Division also registers securities offered for sale to Ohioans. Before meeting with anyone, make sure to verify their credentials and check for any disciplinary history by using FINRA's BrokerCheck and the SEC's Investment Adviser Public Disclosure website. For state-specific information, the Ohio Division of Securities can be contacted at 1-800-788-1194 to confirm if a firm or broker is licensed to do business in Ohio.

The Division notes that financial literacy is not just about investing, it's about managing day-to-day decisions that have long-term consequences, including credit use, budgeting, and avoiding fraud. These skills help young Ohioans prepare for major life milestones such as buying a home, raising a family, or planning for retirement.

"With so many young people entering a new chapter, this is the perfect time for them to build financial habits that last a lifetime," Seidt said. "A little knowledge today can pay off for decades to come."

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John Crist, Director of Compliance, Division of Securities, Ohio Department of Commerce
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About the Division of Securities
The Division of Securities is part of the Ohio Department of Commerce. The department is Ohio's chief regulatory agency, focused on promoting prosperity and protecting what matters most to Ohioans. We ensure businesses follow the laws that help them create jobs and keep Ohioans safe. To learn more about what we do, visit our website at com.ohio.gov.