New Job, New Life: A Britannica Money Learning Journey

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So you just landed a job and you’re striking out on your own. It’s a big step! Are you ready?

Don’t worry. Britannica Money is with you every step of the way, with easy-to-read articles, videos, and interactives, covering everything from filling out your new-hire paperwork to opening bank and credit accounts, setting budgets, planning savings, setting goals, and building a solid credit history. And when you’re ready for a gut check, take the quiz at the bottom to see which concepts you’ve mastered and which ones need a second look.

But before you show up for your first day, you have some decisions to make (and expenses to incur), especially if your new job involves relocating and/or getting your first apartment.

Watch the video below, then start your journey!

Every new freedom comes with a new responsibility.

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1. Rise and shine!

It’s time for your first day on the job. And the first order of business will likely be paperwork:

Tax forms
Retirement plan enrollment
Medical insurance and other benefit forms

Are you ready? Read through the articles below so you know what to expect. And when you get that first paycheck? Check the pay stub to make sure your wages, tax withholdings, and deductions look right.

Before you start your first job: A checklist of up-front costs and considerations

From housing to transportation, starting your first job can involve significant up-front costs. Learn what to expect before you receive your first paycheck.

New job paperwork checklist: Company admin and benefit plan documents

Accepted a new job? From W-4 and I-9 forms to retirement plans & medical insurance, learn what to expect from your new hire paperwork to help your onboarding run smoothly.

Your employer’s 401(k) plan: Enroll and allocate

A 401(k) is a retirement savings plan offered by many employers. Employees contribute part of their wages, often with a company match, to grow retirement funds with a tax advantage.

Medical insurance plan options

Health insurance plan types include PPO, HMO, POS, and EPO. They come with different add-ons, like HSAs and FSAs. Learn how to sort out the jargon such as deductible, co-pay, coinsurance, out-of-pocket max, etc.

How to read a paycheck: Contributions, taxes, deductions, and net vs. gross pay

Reading a paycheck can be confusing at first glance. There’s the gross pay and net pay, taxes such as Medicare and Social Security, and other deductions such as medical insurance and 401(k).

2. Building your new life

You started your job and the money is coming in. But it’s also going out ... quickly! How do you make ends meet? Make a budget and stick to it. Build an emergency fund. Pay down debt as quickly as you can. Work to build a credit history and beef up that credit score. And leave room in the budget for some fun!

Oh, yeah ... and be prepared to pay taxes. Lots of them.

Need help getting started? Run through the articles below. And if you’d prefer to start with a video? Here’s one on budgeting and the 50-30-20 rule.

Your guide to setting a monthly budget

A monthly budget shows how much money you expect to receive and how to use it to cover expenses, set aside savings, and work toward goals such as paying off debt.

Using the 50-30-20 rule to power your household budget

The 50-30-20 rule can help you categorize and track your spending among necessities, entertainment, savings, and debt reduction.

Set up your emergency fund: Saving for a rainy day

An emergency fund is a cash reserve—generally three, six, or nine months’ worth of expenses—set aside to cover unexpected expenses or financial emergencies such as medical bills or job loss.

A list of the taxes we pay: Payroll, sales, property, and more

Taxes come in many forms—income, payroll, property, sales, and excise—each collected to fund government programs and public services.

How to raise your credit score

To improve your credit score, focus on making on-time payments, reducing your credit card balance and holding different types of credit.

Understanding credit cards: Their purpose, positives, and potential pitfalls

Learn about credit card basics like fees, APR, interest, and how payments work. A credit card is a short-term loan. The credit card issuer is letting you borrow money, up to a certain limit.

3. The art of saving

Although the emergency fund should probably be your first saving priority, it’s only the beginning of what will be a lifelong cycle of goal planning, saving toward those goals, and ultimately achieving them. But how do you save, and in which types of accounts?

For starters, you’ve got checking, savings, and money market accounts, as well as certificates of deposit (CDs) available at your bank.

Start with this video on compounding and the time value of money (and see why money experts call it the “eighth wonder of the world”), then work your way through the primer on interest rates, plus articles comparing different types of bank accounts.

How interest rates work: A beginner’s guide for borrowers and saver

Interest rates are calculated two ways. Simple interest is tallied as a percentage of principal over time. Compound interest (also called compounding interest) includes accrued interest along with the principal. Most loans and savings deposits use compound interest.

Your guide to opening and using a bank account

As you get ready to open a bank account, here’s what you need to know about bank checking and savings accounts, certificates of deposit, and money market accounts.

Checking account vs. savings account: Choose one or choose both

Checking accounts and savings accounts have different purposes and requirements. Knowing how to use them can help you meet your money goals.

Money market account vs. checking account: Which is best?

Money market accounts are interest-bearing savings accounts, while checking accounts are transaction accounts meant for daily expenses.

Joint bank accounts: The pros and cons of combining finances

A joint bank account allows couples to access funds from a central location, making it easier for you and your partner to pay bills and save for mutual goals. But it can also lead to disagreement down the road.

Ready to start your new life? Take the quiz.

Pop quiz! Test your money know-how. Visit the Britannica Money “new job, new life” learning journey to fill in any gaps. Explore first-job paperwork, how to build your new financial life, the art of saving, and more.

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Beyond the new job/new life: Consider your future goals

Borrowing from your parents (the Bank of Mom & Dad)

Borrowing money from parents can offer a low-cost way to meet financial obligations. Talk about terms and sign a promissory note to avoid misunderstandings. Loaning to relatives shouldn’t come with a guilt trip.

Should you rent or buy your home? Weighing the costs and benefits

Buying offers a long-term investment & a chance to make a house your own, while renting protects you from repair costs & downturns in the housing market.

How to start investing while repaying student debt and loans

You can start investing early even if you have student loan debt. Take advantage of a 401(k) match if it’s available from your employer. Long-term returns on stocks have historically outpaced student loan interest rates. Consider starting with small, automatic transfers into broad-based index funds.

Why insurance is necessary and which types you really need

Different types of insurance protect your finances from catastrophic loss, big medical bills, lawsuits and other disasters. Which type of insurance is mandatory? Which types do you need and which can you live without?

This article was most recently revised and updated by Doug Ashburn