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Lesson plan · Money After High School · Lesson 11

Retirement Basics

401(k)s, employer matches, and IRAs — and why starting early matters.

  • 45 minutes
  • Grades 9–12
  • Beginner
  • Activity: pairs
Present slidesWorksheet + keyStudent lesson

Objectives

Students will be able to:

  • Explain 401(k)s, IRAs, and employer matches
  • Compare Traditional and Roth accounts
  • Show why starting early matters for retirement

Materials

  • Slide deck and a projector
  • Worksheet (one per student)
  • The lesson's interactive (projected, or on student devices)
  • Exit ticket slips (bottom of the worksheet)

Key vocabulary

Employer match
Money your employer adds when you contribute — for example, 100% of what you put in, up to 4% of your pay. Not contributing enough to get the full match leaves free money on the table.

45-minute agenda

  1. 0–5 min

    Warm-up

    Post: “Your employer offers to add 50 cents for every dollar you save, up to a limit. How good a deal is that?”

    Teacher note: It's an instant 50% return on those dollars — before any investment growth.

  2. 5–12 min

    Direct instruction

    Present the lesson slides. Make sure students leave with these points:

    • Get the full employer match — it's free money.
    • Traditional = tax break now. Roth = tax-free later.
    • Check irs.gov for yearly limits.
    • Don't cash out when you change jobs — roll over.
    • Start early; time does the heavy lifting.

    Use the “See it” slide ($200 a month until 67, at a hypothetical 7%) to make the idea visual.

  3. 12–17 min

    Worked example

    Walk through “The free money” on the slides. Pause before the result and ask students to predict it.

  4. 17–22 min

    Live demo

    Project start at 22 vs. 32 from the slides. Change one input at a time and have students call out what they think will happen.

  5. 22–32 min

    Free Money

    Format: pairs · 10 minutes

    1. Salary: $40,000. The employer matches 100% of contributions up to 4% of salary.
    2. Pairs calculate the employee's contribution and the match for contributing 2%, 4%, and 6%.
    3. Pairs use the compound growth calculator: $200 a month from 22 to 67 vs. from 32 to 67 at a hypothetical 7%.
    4. Pairs write one sentence of advice for a 22-year-old starting a first job.

    What to look for: 2%: $800 + $800 match. 4%: $1,600 + $1,600. 6%: $2,400 + $1,600 (match stops at 4%). $200/month from 22: about $758,519; from 32: about $360,211.

  6. 32–37 min

    Check for understanding

    Use the question slides — or run them as a Four Corners game. Answers:

    1. How much should you contribute to get the full match? — C. $2,500
    2. What's the main difference between Roth and traditional retirement accounts? — A. Roth: pay tax now, tax-free qualified withdrawals later. Traditional: tax break now, taxed later.
    3. Cashing out your 401(k) when you change jobs is usually a good idea because you get the money right away. — False
  7. 37–42 min

    Discussion

    • Why is it so hard to think about retirement when you're young?
    • Would you choose a Roth or traditional account for your first job? Why?
  8. 42–45 min

    Exit ticket

    Prompt: What should you do with a 401(k) when you change jobs?

    Answer: Roll it over to the new employer's plan or an IRA instead of cashing out.

Differentiation

Common misconception

“Retirement is too far away to think about.” The earliest dollars have the most time to grow.

Support

Provide a match table with the 2% row completed.

Extension

Look up this year's 401(k) and IRA contribution limits on irs.gov and explain what they mean for someone earning $40,000.

Homework or make-up work

Students can complete the full interactive lesson — including its knowledge check — at learnwithflc.org/courses/money-after-high-school/retirement-basics. No account needed; progress saves on their device.