Have you ever wondered how much people make and how much they spend? Three families meet with Ramit and put their financial histories in his hands.

Watch How to Get Rich Episode 1.

Key Terms:

• 401(k) – A retirement savings plan, sponsored through your employer who will often match your contributions, that allows an individual to save for retirement and have the savings grow while deferring taxes until funds are withdrawn

• Collections – An attempted recovery of a past-due credit obligation or debt by a collection department or agency

• Commission – Money paid to an employee for meeting or exceeding a predetermined sales target

• Credit score – A three-digit number (ranging from 300-850) based on an individual’s credit history detailed in a credit report

• Debt – Something, typically money, that you owe to a person or a business

• Overdraft protection – A loan banks offer to their customers when they try to withdraw more funds than they have in their account, usually for a fee and with interest