Many Americans don't know what a 401(k) or an interest rate is. Here are the personal finance definitions you're too embarrassed to ask about

“The first step in a happier financial future is education,” said Erika Rasure, chief financial wellness advisor of Beyond Finance. Interestingly, the survey found that Gen Z feels the most uncomfortable about their finances, while Boomers are the most confident.

What do these terms mean?

A 401(k) is a retirement account typically provided through your employer. Around 50% of U.S. workplaces offer a 401(k) as part of the employee’s compensation. A portion of your wages is contributed to the account, and some employers match your contributions. The advantage of a 401(k) is that the money you save for retirement is not taxed until withdrawal, at which point it is taxed at a lower rate. If you are self-employed, you can also set up a Solo 401(k).

Interest, on the other hand, is the cost of borrowing money. It applies to financing a car, paying a mortgage or carrying credit card debt.

For example, if you don’t purchase a car but cannot pay the full amount upfront, the dealership may ask for a down payment and allow you to pay the rest in installments. The dealership will charge interest on the remaining amount you owe. Similarly, if you have credit card debt, the financial institution will charge interest on your balance.

Several factors influence the interest rate you pay. One is your credit score, which reflects your borrowing history and how well you’ve repaid debt in the past. A good credit score can help you secure lower interest rates, while a bad credit score can result in higher rates. Another factor is the Federal Funds Rate, which fluctuates based on the economy. Knowing the current can help you decide between a fixed interest rate, which remains constant, and a variable rate, which changes over time.

Get a financial adviser

Educating yourself about personal finance is important, but having a professional adviser can help you tackle challenges you might not be able to solve alone. A financial adviser can help you in making decisions to increase your wealth or reduce your debt.

To find the right adviser you’ll have to examine your financial needs and identify what part of your finances needs addressing. Financial advisers come in various forms, including financial coaches, certified financial planners, investment advisers, financial consultants and wealth advisors.

Some services offer one-on-one guidance, while others are entirely automated. Advisers can help with tasks suchs as investment management, taxes, budgeting and estate planning. Once you’ve chosen your financial focus, pick the financial adviser that’s right for you.