401(k) basics — work's retirement account
Your job pays you, but they also help you save.
The idea
When you get a real job someday, many offer a 401(k) — a retirement account where money goes straight from your paycheck before you even see it. The best part is the employer match: your company adds free money on top of what you put in. Always contribute enough to grab the full match — it's an instant 100% return you should never leave behind. 💼
Words to know
- 401(k)
- A retirement account offered through a job, funded straight from your paycheck.
- Employer match
- Free money your company adds to your 401(k) when you contribute — never skip it.
- Pre-tax
- Money put in before taxes are taken out, which lowers your tax bill now.
- Contribution limit
- The most you're allowed to add to the account each year.
Try it — no account needed
Your job offers a 401(k) match: 100% up to 6% of salary. You make $50,000. How much SHOULD you contribute to get every dollar of free money?
In the full lesson
- 1Make the call
Vine has 107 lessons like this one, each written three ways so a 7-year-old and a 17-year-old both get a version that fits.
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