UK Votes To Leave The European Union: 5 Things Americans Should Know About 'Brexit'

Over the last few days and weeks, you may have heard news mentions about something called "Brexit" and how British citizens would vote on it.

What does it all mean, and what exactly happened last night? Here's what you need to know.

What is going on?

Thursday, voters in the United Kingdom officially chose to leave the European Union, a group of powerful European countries that let money, trade and people flow freely between member nations. It's sort of like how the United States is one nation made up of different states that have their own laws. It was created following World War II.

British voters had the choice between "remain" and "leave," and "leave" won by about 52 to 48 percent.

Why did people want to leave?

Some people in favor of "leave" felt the UK was getting the short end of the stick economically, sending money to the EU that gets re-distributed to member nations. Others were upset with the EU's wide-open immigration policy, especially in the wake of recent terrorist attacks.

Some experts have compared the populist and nationalist feelings behind the "leave" movement to what's happening with Donald Trump in the United States.

What happens now?

It will take about two years for the UK and EU to actually untangle. But there are plenty of immediate consequences.

Prime Minister David Cameron, a strong "remain" proponent, resigned. The value of the English pound plummeted more than 10 percent during and after the vote but was recovering somewhat Friday morning.

U.S. markets took a hit, too, with the Dow Jones dropping more than 500 points Friday morning and the S&P 500 down nearly 60.

Should I be worried about my retirement?

If you were planning to cash out Friday, the vote's timing probably isn't the best for you. But in the long run, you should be OK.

"In the short term, markets will trade on emotion, so make sure you don’t end up becoming your portfolio’s worst enemy,” Bob Stovall, U.S. equity strategist at S&P Global Market Intelligence, told USA Today, adding that investors should “stay calm and carry on.”

And what about travel to Europe and the UK?

The plunging of the pound and euro following the vote means cheaper travel for Americans looking to holiday in Europe, according to the Washington Post. But if you're hoping to travel between the UK and the rest of Europe while you're there, things could get hairy.

The UK no longer being in the EU will mean more immigration headaches between Britain and the rest of Europe along with more expensive flights between the them.

For more about what Brexit means for the United States, click here.

Image via Justin Ennis, Flickr, used under Creative Commons