Now that you understand why starting early matters, let's talk about one of the best ways to save for retirement: a 401(k).

A 401(k) is a special retirement savings account offered by your employer. Money goes in before taxes, so you save money on taxes today.

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What's one thing you already know about 401(k)s?

Here's how it works: you choose a percentage of your paycheck to automatically go into your 401(k). Many people start with 3-6% of their salary.

The money gets invested and grows over time, just like we learned about compound interest in our last session.

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What percentage of your future salary would you feel comfortable saving?

But here's where 401(k)s get really exciting: many employers offer something called an "employer match."

This means your company will contribute extra money to your 401(k) based on how much you contribute.

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How would a match influence your decision to contribute?

Let's look at a common example: your employer offers a "50% match up to 6% of your salary."

This means if you contribute 6% of your paycheck, your employer adds another 3%. You're getting 9% total savings from just 6% of your salary!

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In your own words, why is this match called "free money"?

Here's the math: if you make $50,000 per year and contribute 6% ($3,000), your employer adds $1,500.

You're putting away $4,500 total for retirement, but it only costs you $3,000 from your paycheck.

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How does getting that extra $1,500 from your employer change your motivation to participate?

The key rule: always contribute enough to get the full employer match. If you don't, you're literally leaving free money on the table.