Finances

Sections

Personal Finance in School

Why They Don’t Teach us About Money in School
5 Ways People Are Dumb With Money

[Two Cents

5 Ways People Are Dumb With Money](https://www.youtube.com/watch?v=n1b7piSmmME)

TODO: Take notes on video ^

TODO: Review: nerdwallet - v

Banks

Wellsfargo
CapitalOne

Conveniences to consider

How large and established the bank is
APY Annual Percentage yield
ATM (automated teller machine) availability
How great their software is. Some banks don’t have the ability to deposit checks via a mobile app

FICO Credit Score

Fico credit score ranges.

Why is it important?

When does your credit score decrease?
- When you owe something and it goes to “collections”

401k

what-is-a-401k
- “Let’s start with the basics. A 401(k) is an employer-sponsored plan for retirement savings. It allows employees the benefit of having retirement savings taken out of their paychecks before taxes. If your workplace offers a 401(k), you’ll fill out an enrollment packet that includes information about vesting, beneficiaries and investing options.”
- How much should you invest?
  - “If your employer offers a match, you should at least invest enough to take full advantage of that perk. Don’t say no to free money!”v
- What Happens to Your 401(k) When You Leave Your Job?
  - “You basically have four options when you leave your job: Do nothing and leave the money in your old 401(k), roll it over into an IRA, roll it into your new employer’s 401(k) plan, or cash out your 401(k).”
  - “Let’s get this out of the way: Do not cash out your 401(k) plan. Bad idea!”
Traditional 401k vs Roth 401k
- What is it?
  - “The Roth 401(k) is a type of retirement savings plan that allows you to make contributions after taxes have been taken out. Then, you receive tax-free withdrawals when you retire.”
- 401(k) vs. Roth 401(k): How Are They Different? | | Roth 401(k) | Traditional 401(k) | | :—-: | :—-: | :—-: | | Contributions | Contributions are made with after-tax dollars (that means you pay taxes on that money now). | Contributions are made with pre-tax dollars (that lowers your taxable income now, but you’ll pay taxes later in retirement). | | Withdrawals | The money you put in and its growth are not taxed. However, your employer match is subject to taxes. | All withdrawals will be taxed at your ordinary income tax rate. Most state income taxes apply too. | | Access | If you’ve held the account for at least five years, you can start taking money out once you are age 59 1/2. You or your beneficiaries can also receive distributions due to disability or death. | You can start receiving distributions at age 59 1/2, no matter how long you’ve had your 401(k). You or your beneficiaries can also receive distributions due to disability or death. |

Journal

2020.07.27 Created file
2020-12-04 Added 5 Ways People Are Dumb With Money section
2021-05-12
- Added FICO Credit Score section
2021-05-18
- Added ` 401k` section
2021-06-07
- Added Personal Finance in School section
2021-11-26
- Took notes on 401k section