Developing financial knowledge and effective money management habits are important steppingstones for teenagers to become financially stable adults who aspire to build assets and achieve personal goals.
(Family Features) Developing financial knowledge and effective money management habits are important steppingstones for teenagers to become financially stable adults who aspire to build assets and achieve personal goals.
For example, most teens (88%) would like to own a home someday, according to a survey conducted by Wakefield Research on behalf of Junior Achievement USA and Fannie Mae. The survey of 1,000 teens ages 13-17 in the United States found most (85%) believe “owning a home” is part of “the good life,” compared to nearly as many adults (87%). However, fewer than half (45%) could correctly identify the definition of a home mortgage and 76% said they lacked clear understanding of credit scores.
“There’s been this theme that younger Americans aren’t interested in homeownership, but the results of this survey contradict that assumption,” said Jack E. Kosakowski, president and CEO of Junior Achievement USA. “Teens appear interested in owning a home someday but seem to realize they need more information on how to do it.”
To help teens gain a better understanding of financial decisions they’ll face in adulthood, consider these common terms.
Credit Score While nearly all teens (96%) believe credit scores play an important role in the ability to purchase a home, approximately 3 in 4 (76%) said they understood credit scores only “somewhat,” “a little” or “not at all.” A credit score is a number from 300-850 based on a number of factors, including credit history, open accounts, total debt, repayment history and more. Lenders use credit scores to evaluate a person’s ability to repay loans.
A person’s credit score may also determine the size of a down payment needed when purchasing a smartphone or home, or the deposit needed for renting property or obtaining utilities and may impact interest rates and credit limits on credit cards. Generally, scores below 620 may require paying a higher rate, a shorter repayment term or a co-signer. Scores of 700 or higher are considered more favorable to creditors and may result in lower interest rates while scores higher than 800 typically provide the most benefits to consumers.
Mortgage While a slight majority of white teens (52%) correctly identified the definition of a mortgage, only around a quarter (26%) of Black teens and fewer than half (41%) of Hispanic or Latino teens could do so. A mortgage is a type of loan used to purchase or maintain a home, land or other types of real estate. The borrower makes a down payment for a portion of the purchase price then borrows the rest from a lender. The borrower then repays the lender over a number of years – typically 15-30 – via a series of regular payments that are divided into principal (the money originally borrowed) and interest with the property serving as security.
Nearly all teens surveyed (97%) thought it would be helpful if schools offered lessons that explained homeownership, including mortgages. In response, Fannie Mae is supporting the development and deployment of Junior Achievement learning experiences for thousands of students annually in various age groups by integrating relevant content from its HomeView homeownership course materials and resources, which are designed with first-time homebuyers in mind.
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“Young people today are the homebuyers of tomorrow,” said Jeffery Hayward, executive vice president and chief administrative officer, Fannie Mae. “By providing them access to quality, foundational education now, Fannie Mae and Junior Achievement are helping these future homeowners prepare for the mortgage and homebuying process when they’re ready to take that step.”
Visit ja.org for more tips and information to help teens improve their financial knowledge and reach their goals.
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Rod: A creative force, blending words, images, and flavors. Blogger, writer, filmmaker, and photographer. Cooking enthusiast with a sci-fi vision. Passionate about his upcoming series and dedicated to TNC Network. Partnered with Rebecca Washington for a shared journey of love and art.
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Rod: A creative force, blending words, images, and flavors. Blogger, writer, filmmaker, and photographer. Cooking enthusiast with a sci-fi vision. Passionate about his upcoming series and dedicated to TNC Network. Partnered with Rebecca Washington for a shared journey of love and art.
Simply put, a 401(k) is an employer-sponsored retirement savings plan in which employees contribute a portion of their compensation on a tax-deferred basis.
The employee is eligible at any age to contribute to a 401(k) plan and has the option to pay into these plans throughout their employment. Many employers match some or all of an employee’s contributions, making the plan even more attractive.
What about withdrawals?
Under Internal Revenue Service rules, someone with a 401(k) is required to start making monetary withdrawals from their plan when they reach age 73. Some people start withdrawing at an earlier age.
Someone with a 401(k) can withdraw funds from the plan early, and at any time. But the money amounts withdrawn will typically be deemed taxable income. In addition, those age 59 and a half and under will likely face a 10% penalty on the withdrawal, unless the employer’s plan allows for hardship distributions, early withdrawals or loans from your plan account.
The IRS has specific rules for these early withdrawals; if you find yourself in this situation, you should get help from a tax professional.
All withdrawals starting at age 73, which tax professionals call “RMDs,” are then taxable in retirement – presumably at a lower tax rate than the employee was subject to while employed and working. So these withdrawals starting at age 73 can be a very tax-efficient way of financial planning, including personal income tax planning, for later in life, especially in one’s retirement years.
Again, it’s important to get help from a tax professional to make sure you meet the IRS’ RMD dollar withdrawal requirements once you start withdrawing.
In calendar-year 2025, the most that an employee can contribute to a tax-deferred 401(k) plan annually is US$23,500, including the employer’s match. “Super catch-up contributions are allowed for employees over the age of 50 to their employer’s 401(k) plan each year indexed to inflation. In 2025, super catch-up contributions allow individuals age 50 and older to contribute an additional $7,500 beyond the standard limit, bringing their total annual contribution to $31,000. For those turning age 60, 61, 62 or 63 in 2025, the SECURE Act 2.0 allows a higher catch-up contribution limit of $11,250, resulting in a total allowable contribution of $34,750 in 2025.
When and why did 401(k)s become popular?
Before 1978, retirement savings options were limited.
In 1935, Congress created the Social Security Retirement Plan. This was followed by the Employee Retirement Income Security Act of 1974, which created individual retirement accounts, or IRAs, as a way for employees to save tax-deferred money for their retirement.
401(k) plans became popular with the passage of the Revenue Act of 1978 by Congress.
Congress saw 401(k) plans at that time as an alternative way to supplement Social Security benefits that all eligible Americans are entitled to receive upon retirement. In 1981, the IRS issued new rules and regulations allowing employees to fund their 401(k)s through payroll deductions. This significantly increased the number of employees contributing to their employers’ 401(k) plans.
As of September 2024, Americans held $8.9 trillion in 401(k) plans, according to the Investment Company Institute. A study published by the Pension Rights Center toward the end of 2023 using data provided by the Bureau of Labor Statistics concluded that 56% of all workers – including private sector and state and local government workers – participate in a workplace retirement plan. That equates to 145 million full- and part-time workers.
How are 401(k) plans affected by market rises and falls?
Contributions to a 401(k) are typically invested in a variety of financial instruments, including in the stock market.
Most 401(k) plans offer investment options with varying levels of risk, allowing employees to choose based on their personal comfort levels and financial goals.
Employers typically outsource the management of these 401(k) plans to third parties. Some of the largest companies managing 401(k) funds on behalf of employers and employees include Fidelity Investments, T. Rowe Price and Charles Schwab, to name just a few.
Because many of these investments are tied to the stock market, 401(k) balances can rise or fall with market fluctuations.
401(k) plans are a financial lifeline for many American retirees.Halfpoint Images/Getty Images
Should I be worried about the stock market tanking my 401(k)?
It depends on when you started making contributions, when you plan to retire and when you expect to start making withdrawals.
Employees with 401(k) accounts should only be worried about falling stocks if they need the money right now – either for retirement living expenses or for other emergency reasons. If you don’t need to take money out soon, there’s usually no reason to panic. History has shown that markets can rebound quickly; short-term drops often don’t signal long-term trends.
Over time, the stock market has experienced many periods of falling stock prices: the bursting of the internet bubble of 2000; the period after the events of 9/11; and the U.S. and global banking crisis of 2007-2010, to name but three.
But overall, over time, stock market returns have averaged 9% from 1994 to 2024, and this includes the periods of falling stock prices mentioned above.
So even if you are a baby boomer heading for retirement and your 401(k) has taken a hit in recent weeks, don’t panic. Bear in mind the truism that stock markets can always go down as well as up.
History suggests that in the long run, depending upon your plans and timing for retirement, working together with a trusted financial adviser strategically with regard to your 401(k) retirement savings is a good approach, especially during periods like we have seen in recent weeks in the stock market.
This article is for informational purposes and does not constitute financial advice. Consult with a qualified financial adviser before making financial decisions.Dr. Ronald Premuroso, Accounting Instructor, Western Governors University School of Business
This article is republished from The Conversation under a Creative Commons license. Read the original article.
3 Unforgettable Mother’s Day Meals That Will Make Her Heart (and Taste Buds) Sing
Create an unforgettable Mother’s Day with a home-cooked meal featuring three easy yet impressive recipes: Lemon Ricotta Pancakes, Mediterranean Brunch Board, and Herb-Crusted Salmon, paired with wines to enhance flavors and create lasting memories.
A beautifully arranged table set with plates, silverware, and candles. Perfect for formal dining or special occasions.
Want to make this Mother’s Day extra special? Skip the crowded restaurants and show Mom your love through a home-cooked meal she’ll never forget. We’ve crafted three foolproof recipes that even kitchen novices can master – because nothing says “I love you” quite like a meal made from the heart.
🌟 1. Heavenly Lemon Ricotta Pancakes with Berry Compote
Picture golden, cloud-like pancakes that practically float off the plate, their edges delicately crispy while their centers remain pillowy-soft and tender. The rich, creamy ricotta creates pockets of moisture that melt in your mouth, while bright lemon zest cuts through with citrusy sparkle. The warm berry compote cascades over the stack, its jewel-toned fruits bursting with sweet-tart juice that mingles perfectly with pure maple syrup.
A feast for both eyes and palate, this stunning spread features eggs with golden yolks that ooze luxuriously when broken, their richness enhanced by aromatic dukkah’s nutty crunch. Creamy, house-made hummus swirled with extra virgin olive oil sits alongside prosciutto roses that fold like silk. Fresh figs, split to reveal their honey-sweet crimson centers, nestle against wedges of artisanal cheese that range from buttery-soft to crystalline-sharp. Every bite tells a story of Mediterranean sunshine.
👑 3. Herb-Crusted Salmon with Champagne Cream Sauce
A masterpiece of textures and flavors: the salmon’s herb crust offers a satisfying crackle before revealing the perfectly cooked, rose-pink flesh beneath that flakes at the mere touch of a fork. The champagne cream sauce, velvety and sophisticated, pools elegantly around the fish, its subtle bubbles lending an air of celebration. Bright green asparagus spears provide the perfect crisp-tender contrast, while the wild mushroom risotto, infused with earthy aromatics and finished with a generous shower of Parmesan, creates a bed of creamy comfort that ties the whole dish together.
Why These Recipes Work:
Each recipe can be partially prepped in advance
Ingredients are easily found in most supermarkets
They’re impressive without being overly complicated
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Perfect balance of flavors and textures
Suitable for various dietary preferences
Each bite is carefully crafted to create not just a meal, but a memorable experience that shows Mom just how special she is. The interplay of textures and flavors in each dish creates a symphony of tastes that will linger in her memory long after the last bite.
Here are some Wine Pairings to make these dishes perfect:
🌟 Lemon Ricotta Pancakes
Perfect Pairing: Prosecco or Moscato d’Asti
Why it works: The light bubbles and subtle sweetness complement the citrus notes while cutting through the richness of the ricotta.
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🍳 Mediterranean Brunch Board
Perfect Pairing: Rosé or Albariño
Why it works: A crisp, dry rosé enhances the salty prosciutto and creamy cheeses, while Albariño’s mineral notes complement the Mediterranean flavors.
👑 Herb-Crusted Salmon
Perfect Pairing: Chardonnay or Pinot Noir
Why it works: A lightly oaked Chardonnay matches the richness of the champagne sauce, while a light-bodied Pinot Noir works beautifully with the herb crust.
Plating Instructions:
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Lemon Ricotta Pancakes:
Stack 3-4 pancakes slightly off-center on a warm, white plate
Drizzle berry compote in an artistic swoosh from 2 o’clock to 7 o’clock
Garnish with fresh mint leaves and a light dusting of powdered sugar
Pro tip: Use a wide, flat plate to let the colors pop against the white background
Mediterranean Brunch Board:
Start with a large wooden board or slate platter
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Create height by placing small bowls of hummus and dips at different points
Arrange prosciutto roses in a cascading pattern
Group cheeses by type, creating a gradient from soft to hard
Fill negative space with fresh herbs and edible flowers
Pro tip: Use small olive wood bowls for dips to add rustic elegance
Herb-Crusted Salmon:
Place the risotto in a shallow bowl using a ring mold
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Position the salmon at a 45-degree angle, slightly overlapping the risotto
Arrange asparagus spears like a fan
Drizzle champagne sauce in an elegant circle around the plate
Garnish with micro herbs and edible flowers
Pro tip: Warm the plates before serving to keep everything at perfect temperature
Remember: The most important ingredient isn’t listed in any recipe – it’s the love and thought you put into making Mom’s day special. These meals aren’t just about the food; they’re about creating precious moments together.
Ready to make Mom’s day unforgettable? Save these recipes now and start planning your Mother’s Day menu. Trust us – seeing her face light up will be worth every minute in the kitchen.
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Here are some related links to further help you make Mother’s Day special:
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Visit our Food & Drink section to get the latest on Foodie News and recipes, offering a delightful blend of culinary inspiration and gastronomic trends to elevate your dining experience.
Socially Engaged Design of Nuclear Energy Technologies
What prompted the idea for the course?
The two of us had some experience with participatory design coming into this course, and we had a shared interest in bringing virtual reality into a first-year design class at the University of Michigan.
It seemed like a good fit to help students learn about nuclear technologies, given that hands-on experience can be difficult to provide in that context. We both wanted to teach students about the social and environmental implications of engineering work, too.
Aditi is a nuclear engineer and had been using participatory design in her research, and Katie had been teaching ethics and design to engineering students for many years.
What does the course explore?
Broadly, the course explores engineering design. We introduce our students to the principles of nuclear engineering and energy systems design, and we go through ethical concerns. They also learn communication strategies – like writing for different audiences.
Students learn to design the exterior features of nuclear energy facilities in collaboration with local communities. The course focuses on a different nuclear energy technology each year.
In the first year, the focus was on fusion energy systems. In fall 2024, we looked at locating nuclear microreactors near local communities.
The main project was to collaboratively decide where a microreactor might be sited, what it might look like, and what outcomes the community would like to see versus which would cause concern.
Students also think about designing nuclear systems with both future generations and a shared common good in mind.
The class explores engineering as a sociotechnical practice – meaning that technologies are not neutral. They shape and affect social life, for better and for worse. To us, a sociotechnical engineer is someone who adheres to scientific and engineering fundamentals, communicates ethically and designs in collaboration with the people who are likely to be affected by their work.
In class, we help our students reflect on these challenges and responsibilities.
Why is this course relevant now?
Nuclear energy system design is advancing quickly, allowing engineers to rethink how they approach design. Fusion energy systems and fission microreactors are two areas of rapidly evolving innovation.
Microreactors are smaller than traditional nuclear energy systems, so planners can place them closer to communities. These smaller reactors will likely be safer to run and operate, and may be a good fit for rural communities looking to transition to carbon-neutral energy systems.
But for the needs, concerns and knowledge of local people to shape the design process, local communities need to be involved in these reactor siting and design conversations.
Students in the course explore nuclear facilities in virtual reality.Thomas Barwick/DigitalVision via Getty Images
What materials does the course feature?
We use virtual reality models of both fission and fusion reactors, along with models of energy system facilities. AI image generators are helpful for rapid prototyping – we have used these in class with students and in workshops.
This year, we are also inviting students to do some hands-on prototyping with scrap materials for a project on nuclear energy systems.
What will the course prepare students to do?
Students leave the course understanding that community engagement is an essential – not optional – component of good design. We equip students to approach technology use and development with users’ needs and concerns in mind.
Specifically, they learn how to engage with and observe communities using ethical, respectful methods that align with the university’s engineering research standards.
What’s a critical lesson from the course?
As instructors, we have an opportunity – and probably also an obligation – to learn from students as much as we are teaching them course content. Gen Z students have grown up with environmental and social concerns as centerpieces of their media diets, and we’ve noticed that they tend to be more strongly invested in these topics than previous generations of engineering students.
Aditi Verma, Assistant Professor of Nuclear Engineering and Radiological Sciences, University of Michigan and Katie Snyder, Lecturer III in Technical Communication, College of Engineering, University of Michigan
This article is republished from The Conversation under a Creative Commons license. Read the original article.
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Dr. Ronald Premuroso, Accounting Instructor, Western Governors University School of Business
This article is republished from The Conversation under a Creative Commons license. Read the original article.
