Author: Sarah Johnson

Net worth is the total value of what you own minus what you owe. In simple terms, it is your assets minus your liabilities. It isn’t your monthly income, your checking account balance, or how expensive your lifestyle looks from the outside. It is a financial snapshot that shows where you stand at one point in time. So, what is net worth in real life? If your assets add up to $250,000 and your liabilities total $180,000, your net worth is $70,000. If your debts are higher than your assets, your net worth is negative. That may sound discouraging, but…

Net worth is one of the clearest ways to measure financial progress. It’s the value of what you own, your assets, minus what you owe, your liabilities. It isn’t your salary, monthly cash flow, or how impressive your lifestyle looks. It’s a financial snapshot. According to Federal Reserve Survey of Consumer Finances data, the median net worth for American households is about $192,900, while the average household net worth is about $1,063,700. That large gap is why average net worth by age can be misleading. A small number of very wealthy households can pull the average far above what a…

What is equity? In the simplest sense, equity means ownership value. The equity meaning changes slightly depending on context, but the core idea stays the same: it’s what you own after subtracting what you owe. In investing, equities are shares of ownership in a company. When you buy equities, you aren’t lending money like a bondholder. You are buying a small piece of a business, with the chance to benefit if that business grows. The Universal Meaning of Equity Equity is a broad finance term. In business, it can mean ownership value. In real estate, it can mean the part…

You just received a job offer from a government agency, public school, university, or nonprofit, and the benefits package mentions a 401(a) plan. If you are used to hearing about 401(k)s, the name can feel confusing. What Is a 401(a) Plan, and how is it different from other retirement accounts? Can you open one yourself? Are the contributions optional? A 401(a) is an employer-sponsored retirement plan commonly used by public-sector, educational, and nonprofit employers. Unlike a 401(k), where employees usually decide how much to contribute, a 401(a) plan is largely controlled by the employer. The employer may decide who participates,…

Retirement plan names can feel like alphabet soup. You see 401(a), 401(k), 403(b), and 457(b), and they all sound similar enough to blur together. But if you work for a government agency, public school, university, nonprofit, or private company, the difference between a 401(a) vs 401(k) can affect how much control you have, how much you can save, and what happens when you leave your job. A 401(a) plan is usually offered by government, education, and nonprofit employers, and the employer controls the plan design. A 401(k) is more common in the private sector and usually lets employees choose how…

If you work for a public school, university, hospital, nonprofit, or government agency, your retirement benefits package can feel like alphabet soup. You may see a 401(a) plan, a 403(b) plan, a pension, or even a 457(b) plan listed together. The most confusing pair is often 401(a) vs 403(b) because both can appear in the same workplace. But they aren’t used the same way. The main difference between 401(a) vs 403(b) is control. A 401(a) is usually employer-driven, and contributions may be mandatory or employer-funded. A 403(b) is usually employee-driven, meaning you voluntarily decide how much salary to contribute. Many…

If you want to give your child a serious financial head start, time matters more than almost anything else. A small investment made while a child is young can have decades to grow, and that is what makes a custodial Roth IRA so powerful. A Roth IRA for kids isn’t a loophole or a special child-only account. It’s a Roth IRA opened and managed by an adult custodian for a minor who has legitimate earned income. The account can grow tax-free, and qualified withdrawals in retirement can also be tax-free. Can I open a Roth IRA for my child? Yes,…

The 2026 FSA contribution limits are higher, giving employees and families more room to set aside pre-tax money for healthcare, childcare, and commuting costs. For anyone preparing for open enrollment, the key question isn’t only “What’s the FSA max 2026?” It’s also how to use these limits wisely without overfunding an account or leaving money behind. Interactive Tool: The 2026 FSA Tax Savings Estimator A good FSA decision starts with a simple estimate. Add up your predictable expenses: prescriptions, doctor visits, dental work, glasses, contacts, therapy copays, or planned procedures. Then multiply your expected FSA election by your combined tax…

Healthcare costs don’t arrive in neat, predictable patterns. A prescription refill, a specialist visit, a dental procedure, or a sudden deductible bill can quickly turn a normal month into a stressful one. That’s why many employers use a health reimbursement arrangement, often called an HRA, to make healthcare benefits more flexible and financially manageable. So, what is an HRA? In simple terms, an HRA is an employer-funded health benefit that reimburses employees for eligible medical expenses and, depending on the plan type, health insurance premiums. It isn’t a personal savings account. It’s a reimbursement promise created and funded by the…

Healthcare benefits can feel like alphabet soup: HSA, HRA, FSA, HDHP, ICHRA, QSEHRA. The names sound similar, but the rules can lead to very different financial outcomes. If you’re comparing HSA vs HRA during 2026 open enrollment, the most important question isn’t which account sounds better. It’s which one fits your health costs, cash flow, tax strategy, and job situation. A Health Savings Account and a health reimbursement arrangement can both help pay medical expenses, but they work in opposite ways. One is personally owned. The other is employer-controlled. One can grow like a long-term asset. The other can reduce…