The Millennial’s guide to personal finance

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The need for financial literacy is finally catching on at the high school level across the country, but what about for those in the “Millenial” generation who missed out on this new proliferation of required personal finance classes?

For starters, understanding basic financial terms can help this, and any generation, make the most informed choices about their fiscal path.

In a recent article, Mashable, a leading source for news, information, and resources for the “Connected Generation”, which includes Millenials, listed commonly used terms and their definitions that Millenials can use to navigate their personal finance world:

401(k)
A popular retirement plan offered by many employers, a 401(k) allows you to set aside a certain percentage of your paycheck into a retirement fund, before taxes.

Some companies will match a portion of your yearly 401(k) savings as an incentive for participating in the program. The funds in your 401(k) are then invested into different ventures, such as bonds, money market accounts, and stocks. However, you will not lose your savings if your employer files for bankruptcy.

You will receive the money as an annuity once you retire, but if you choose to withdraw the funds before turning 59.5 years old, you will have to pay taxes on it.

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