Employer match
An employer match is money your employer adds to your retirement account when you contribute, such as 50 cents for each dollar you put in, up to a set share of your pay.
🌍 In the real world
A typical formula is a 50% match on the first 6% of pay you contribute, or a dollar-for-dollar match on the first 3% to 5%. If you contribute less than the amount needed for the full match, the rest of the match isn't paid.
That's why many personal finance guides put getting the full match right after a starter emergency fund, before paying extra on most debts. Matched money often vests over a few years, meaning you keep it only if you stay long enough. The match is added before any gains or losses, and the account can still lose value.
Formula
Match = your contribution × match rate, up to the cap
Example
Earn $60,000 with a 50% match on the first 6%: contribute $3,600 and your employer adds $1,800.
🎮 In Journey Shares
The closest thing in the game is the free money on offer each day: the daily bonus and scratch card. Step 2 of the money plan is to claim it. →
🧭 How to use it
Claim the daily bonus every day: it's free money, and missing a day resets the streak that makes it grow.
🎮 Learn Employer match the fun way
Try it in a live 3D city with play money: trade shares in real public figures, get margin-called, pay your taxes and rob a bot or two. Free, and nothing real is at stake.
❓ Common questions
What does vesting mean?
Your own contributions are always yours. Your employer's match may vest over time, often over three to six years, and you keep only the vested part if you leave.
Should I get the match even if I have credit card debt?
Many guides say yes, get the full match first, then pay down high-interest debt. Your situation may differ, and a financial professional can help with specifics.
📜 Where it came from
🧩 Quick check
Which term is this?
“____ is interest earned on both your original money and the interest it has already earned, so savings grow faster over time.”
🔗 Related terms
- 401(k): A 401(k) is a US retirement account offered through an employer.
- Savings rate: Your savings rate is the share of your income you save or invest.
- Compound interest: Compound interest is interest earned on both your original money and the interest it has already earned, so savings grow faster over time.
- Opportunity cost: Opportunity cost is the value of the best alternative you give up when you make a choice.
Categories: Personal finance
Practise with $10,000 in play money
Free. No real money involved.