<prompt> Human: My employer showed us a demo of investing on 401k. The example was fairly straightforward. David and John makes 17 an hour or 680 a week. If David contribute 6 of his gross or less employer will match he will be taxed after his contribution which will result in slightly higher take home pay than John, who doesnt contribute to 401k. I dont remember the whole demo but this is what I can recall. Is this true? I currently dont contribute to my 401k because I need every penny i make, but after hearing his i am having a second thought. Thank you!  <response>: Depends how you define take home. Your weekly paycheck will be lower due to the amount youre putting toward the 401k. Your total compensation will be higher due to two effects:1. The tax advantages of the 401k you dont pay tax now on whatever you invest2. The employer match. This is essentially free money just for choosing to save some of your pay, an instant 100 return. 