First things first, how the stink do you pronounce these things? As it turns out, you can go one of two ways. Some people call 'em Iras (eye-ruhs) and other people call 'em I.R.A.s (eye-are-ays).

However you say it, should probably know what they are.

Spoiler alert: when you're old and wrinkly, you're still going to want money. And guess what? You won't have a job anymore (hello, retirement!), so you won't have any income. So…what are you supposed to do?

Start saving now.

Traditional IRAs

Ah, the classic.

With traditional IRAs, you deposit pre-tax money. That means that if you make $40,000 in a year and put $5,000 into a Traditional IRA, you'll only pay income taxes on $35,000 ($40,000-$5,000) that year. Sounds good, right? Then, when you take the money out of the account (waaaay down the road when you retire), that's when you'll pay taxes on that $5,000. By then, you'll be earning less (or, uh, nothing) so you'll have to pay fewer taxes because you'll be in a lower tax bracket.

Roth IRAs

Roth IRAs do the opposite. If you make $40,000 and put $5,000 in a Roth IRA, you still pay taxes on that $40,000 (as your granny would say, phooey). But then, when you're in your 60s and ready to retire, you can have at that cash with no tax penalty. That'll leave you more for salsa lessons and shoe inserts for your bunions.

Remember, there's a fine for taking money out of your IRA, so only put it in there if you're sure you won't need it until you retire. And even though you're probably not making $40K right now, that doesn't mean you can't start saving for retirement. Money making money is a good idea no matter how much it is.

While we know retirement may seem a ways off—and yeah, it is—it really is never too early to start. No joke: some kids put money into IRAs starting at age seven. Seven!

Feel like a slacker yet?