Explaining the Benefits of a 401(k) to Young Adults Entering the Workforce
Submitted by Blue Chip Financial on September 22nd, 2021If you have a child graduating from high school or college and entering the workforce, they may have the opportunity to open up a 401(k) through their new employer. In some cases, that employer will also offer matching contribution funds up to a certain percentage. While it sounds like a no-brainer to take advantage of these benefits early,many younger employees do not participate in their employer's 401(k) plan.
It’s essential to teach your children the benefit of saving early and often to set them up for success in the future. Here are some key benefits of starting to contribute in a 401(k) in your early 20s.