Millennials: The Answers to All the Financial Questions You’re Too Embarrassed to Ask

What is a 401(k)?


A 401(k) is a retirement savings plan, which commonly accrues interest over the years. Taxes are paid only when you take the money out of the account (which kind of explains why everyone is huffing and puffing over tax increases).

Some employers will match whatever you put into your 401(k), so that means….free money. If you leave your employer, you still get to keep the money. But if you take the money out earlier than when you retire, you’ll be hit with taxes and a 10% penalty.

Still confused? Watch John Oliver break down the do’s and don’t’s of 401(k) accounts in this hilarious video below:

What Is Social Security?

We hear politicians mention social security over and over again. And a lot of older people worry if social security will be drained by the time they retire. But what exactly does this all mean?

Social Security covers a lot of people in America. It provides funding to retired and disabled workers, as well as to the families of deceased workers. Basically, it does what the title implies. Think of it as one big safety net for the some of the nation’s most vulnerable citizens.

According to a Time 2016 report, Social Security Trust is on track to run out by 2036, at which point only 75% of what it doles out will be from payroll taxes (you know, the part of the reason why your check is always slightly lower than what you expect it to be).

The projected depletion is why there are numerous calls to raise the retirement age.

How much should I be paying for rent?

The rule of thumb is that you should be spending no more than 30% of your income on rent. Therefore if you make $4,000 a month, your rent should be no more than $1,200.

Did my parents have it easier growing up?

Short answer, yes. If your parents were embarking on their careers before the 80s, inflation was lower, unions were stronger, and the job market was overall stronger. You can read more about the shift towards emphasizing owning bonds, increasing demand in the housing market, and encouraging consumers to take out as much credit as possible, here.

How Many credit cards are too many credit cards?

There is no magic number! What is most important is that you are paying all of your credit card bills regularly and managing your debt. So don’t reverse logic yourself into thinking more credit cards is being more of an adult. Not biting off more than you can chew is what adulting is really all about.

What is the cheapest way to go out?

Drink at home beforehand (but no drinking and driving!), but also bring a set amount of hard cash with you out for the night. It’s easy to keep swiping that card throughout the night. With a set amount of cash in hand, you’re forced to pace yourself and know when it’s a sign to call it a night.

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What is a 401(k)?


A 401(k) is a retirement savings plan, which commonly accrues interest over the years. Taxes are paid only when you take the money out of the account (which kind of explains why everyone is huffing and puffing over tax increases).

Some employers will match whatever you put into your 401(k), so that means….free money. If you leave your employer, you still get to keep the money. But if you take the money out earlier than when you retire, you'll be hit with taxes and a 10% penalty.

Still confused? Watch John Oliver break down the do's and don't's of 401(k) accounts in this hilarious video below:

What Is Social Security?

We hear politicians mention social security over and over again. And a lot of older people worry if social security will be drained by the time they retire. But what exactly does this all mean?

Social Security covers a lot of people in America. It provides funding to retired and disabled workers, as well as to the families of deceased workers. Basically, it does what the title implies. Think of it as one big safety net for the some of the nation's most vulnerable citizens.

According to a Time 2016 report, Social Security Trust is on track to run out by 2036, at which point only 75% of what it doles out will be from payroll taxes (you know, the part of the reason why your check is always slightly lower than what you expect it to be).

The projected depletion is why there are numerous calls to raise the retirement age.

How much should I be paying for rent?

The rule of thumb is that you should be spending no more than 30% of your income on rent. Therefore if you make $4,000 a month, your rent should be no more than $1,200.

Did my parents have it easier growing up?

Short answer, yes. If your parents were embarking on their careers before the 80s, inflation was lower, unions were stronger, and the job market was overall stronger. You can read more about the shift towards emphasizing owning bonds, increasing demand in the housing market, and encouraging consumers to take out as much credit as possible, here.

How Many credit cards are too many credit cards?

There is no magic number! What is most important is that you are paying all of your credit card bills regularly and managing your debt. So don't reverse logic yourself into thinking more credit cards is being more of an adult. Not biting off more than you can chew is what adulting is really all about.

What is the cheapest way to go out?

Drink at home beforehand (but no drinking and driving!), but also bring a set amount of hard cash with you out for the night. It's easy to keep swiping that card throughout the night. With a set amount of cash in hand, you're forced to pace yourself and know when it's a sign to call it a night.

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What Is Kris Jenner’s Net Worth? 

Kris Jenner

The Momager May Be Worth More Than You Think… Kris Jenner is a pop culture icon for many reasons. While you may have watched her meteoric rise to fame on Keeping Up with the Kardashians — which originally debuted on E! — she’s actually been a fascinating figure in the public eye for ages.  As

What Is Kylie Jenner’s Net Worth? 

Kylie Jenner

The Kar-Jenner family is loaded thanks to their business prowess (and fierce momager, Kris Jenner.) Kim Kardashian said it best when she lamented that it “seems like nobody wants to work these days,” but these sisters never have a day off. And that’s why the topic of Kylie Jenner’s net worth is so intriguing.  But

What Is Taylor Swift’s Net Worth? 

Taylor Swift for "The Tortured Poet's Department"

Taylor Swift is a megastar singer-songwriter known for her narrative songwriting, catchy pop tunes, and versatility across genres like country, pop, and indie folk. She breaks every music record with ease, partially thanks to her die-hard Swiftie fans who follow her with vigor and buy out every single show. And with Taylor Swift’s net worth

The Artists Vs. The Machine: The Dark Side Of AI In The Music Industry

Taylor Swift, The Tortured Poets Department

Republic Records

Artificial Intelligence (AI) has become overwhelmingly popular in the past few years. The world has leaned full-force into technology and entrusted AI with, well, everything. You can see AI commercials, AI-powered statistics during sports games, and there was even a whole writer’s strike over the AI Invasion of storytelling and Hollywood. As I’ve watched tens

So…The Hybrid Work Model Is Weighing On Your Mental Health

A majority of the population works from home...but are you happy about it?

Resume Genius via Unsplash

Ever since the pandemic popularized (or forced) virtual meetings and, countless companies adopted the hybrid work model or went completely virtual. And once the public health crisis was declared over, we remained confined to our desks in our kitchens and attics working from home. And it’s not just work. Doctor’s TeleHealth appointments, therapy visits on

How To Quickly Pay Off Student Loans

Here's how to pay off your student loans fast

Talking about student loans can be an uncomfortable subject. Considering how stressful your debt pay-off journey can be, it’s easy to get overwhelmed by how much you still owe. Fortunately, there are a few ways to successfully pay off your student loans in a speedy fashion so you can finally breathe that sigh of relief

Can You Afford The Lifestyle You’re Living?

Audrey Hepburn in "Breakfast At Tiffany's", shopping at Tiffany & Co.

Paramount

Look, I get it. We live in a social media-driven world, where millions of people log into their multiple accounts daily — even hourly! — to promote the illusion of their ideal life. They share snapshots of the highlights of their days: trips to the cafe, lush travels to islands, shopping trips at luxury fashion

Shop Smarter, Not Harder

Here's how you can potentially save some money while shopping.

Artem Beliaikin via Unsplash

Recently, I found the perfect gift for my roommate — a sweatshirt of Rocky and Creed fighting, if you must know or needed last-minute inspo. She’s a fan of the franchise, and as a Philadelphia native, I couldn’t resist. Waiting until Black Friday (guaranteed sale), I logged onto PacSun’s website to be met with the

Girl Boss Edition: 5 Celebs Paving The Way In Business

Rihanna for 2024 Savage x Fenty Valentine's Day

Savage x Fenty

We live in a world where most celebrities have multiple business endeavors going besides what made them famous. Well known socialites are no longer just party-goers in ballgowns, but have now taken on the term “influencer” and drape themselves in brand deals before being photographed. And maybe being a public spectacle becomes so uninspiring that